The U.S. SBA has deciphered reasons why businesses fail. One prime reason is attributed to an entrepreneur’s ability to get access to credit. If loan is not secured in time then it is not possible for an organization to grow. Businesses can survive even in a tough economy if they find access to capital.
Small Businesses most often turn to their local banks but most of the time they get disappointed due to the challenging credit market and extended approval periods. So, when banks deny them loans, business owners are forced to seek alternative lending that is based on shorter terms.
Traditional banks are the ones that depend on credit scores, collateral and tax information to secure loan. New products like ‘factoring’ and ‘merchant cash advance’ have come to the fore. The new breed of lenders are suited for businesses that do not have b2b invoices to factor. So, now business owners have other options to hang on so as to obtain fast and intelligent loan decisions.
Application process of factoring is quick and transparent and the terms of the loans are understandable. The business interest of entrepreneurs is highlighted and based on their necessities, grants are made available to enterprise owners. There are no arbitrary rates asked by the alternative lenders and so entrepreneurs can easily borrow loan grants that are required for the proper functioning of their business.
This article was submitted by Raj Tulshan, Director of Business Development of Biz2Credit. Biz2Credit is a small business marketplace that connects entrepreneurs with financing options and advice to grow their business. Send all questions to info@biz2credit.com
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