You have a company– perhaps a small business. And you need financing for whatever reason… maybe you want to expand your business or maybe you’re experiencing a temporary cash flow problem. What’s the best financing option for your company?
Typically, companies have gone to local banks or credit unions to obtain funding. While this is a traditional method for funding, the application process might take too long for a company’s current needs, right? Furthermore, the bank or credit union might have strict borrowing requirements.
Alternative Financing Options
These days there are alternative financing options available, often online, that make borrowing money easier and quicker than traditional methods. Millennium Funding is a prime example of alternative financing. First, though, let us compare traditional and alternative lenders.
Concerning interest rates, alternative lenders don’t have to pay for overhead like banks do, but they also don’t have access to a large pool of capital like banks do. So, banks tend to offer lower interest rates.
Timing-wise, alternative lenders typically offer everything online such that the loan process can be done swiftly, sometimes within a day or two. Compare that to banks, where it may take several weeks just to hear back.
Also, banks tend to lend to companies with a proven track record, such that they’ve been operating for several years. Requirements can include the submittal of a formal business plan, proof that the company has a good credit score, and proof that there’s collateral available in order to qualify for a loan. Alternative lenders, on the other hand, don’t have so many hoops to jump through. They might not require a business plan submittal, for example.
As for fees, banks generally have more upfront costs than alternative lenders. If you discover there’s an “application fee” and/or an “origination fee,” chances are you’re asking for money from a bank or credit union. Alternative lenders tend to be more inexpensive if and when you apply for funding.
So, if you need financing quickly without hassle, consider contacting an alternative lender like Millennium Funding at 888-652-8298. If you have time to spare and don’t need funding right away, apply at banks or credit unions.