As businesses reopen after the first and second waves of the coronavirus outbreak, they are now in need of funds more than ever. But all conventional financial lending institutions, including banks, are reeling under the effects of the pandemic. Cash flow has emerged as the biggest worry for small businesses in particular. They need to cope with increasing costs of manufacturing, constructions, and suppliers to scale their businesses.
Traditional mainstream lenders like the banks are now more reluctant than ever when it comes to extending financial assistance. Loans are hard-to-get and waiting times are long, coupled with endless scrutiny. In such a situation, alternative funding is the way to go for small enterprises.
Reasons to choose alternative funding:
- Improve cash flow: With alternative business funding you can ensure that you have a steady flow of cash when you need it. An alternative lending source will help you get loans when you need money instantly. This could be for buying new equipment to improve some product or service. It could be to pay for additional costs when you hire new employees.
- Scalability: When you have access to alternative finance you are free to expand your business anytime. A small business funding group will help you in using this loan just the way you want to because you know your business the best. Traditional lenders will want more guarantees and conditions when it comes to extending financial help. They will have stricter guidelines and lengthy waiting periods for loan approvals.
- Quick response: Alternative financing offers you access to capital which you are free to use in any way you want to. You need not wait for months to get your loans approved from banks. Alternative financing is speedier and gives small businesses ready access to instant funds, even smaller amounts. Banks typically do not find it much profitable to extend loans for very small amounts.
- Maximize opportunities: If you have the chance to buy machinery or raw materials at discounted prices, you should not let it go. But such opportunities do not last long and you can lose out unless you have ready cash in hand. However, alternative funding groups make sure such opportunities are never missed.
- Emergency use: Economic disruptions like the ones triggered by Covid-19 or harsh weather throwing businesses out of gear need emergency cash to stay afloat. How will you pay for this? You cannot request for loans from a bank to get through these unprecedented challenges. This is where alternative financing helps, making it more important than ever today.
A specialist finance group recently reported that businesses were now keener to choose alternative finance compared to traditional lenders. Reasons for this are slowness in decision making amongst mainstream lenders and inflexible payment terms.
Alternative Funding Group provides financial loans for all types of businesses. They have been part of the expansion journey of many SMEs throughout the country. With businesses facing bigger challenges of getting traditional loans for growth, they are looking for a hassle-free way to secure funds. And Alternative Funding Group strives to do just that for them.