Alternative lenders provide a broad assortment of funding opportunities for countless businesses. Unfortunately, many business owners have been led to believe a variety of fallacies about alternative lending practices. Use the following overview to explore just how beneficial such practices can actually be.
Some people believe a major misconception that only certain types of business owners apply for alternatives to conventional bank loans. That might include only people who have been rejected for traditional loans, or those who could not possibly get credit any other way. This simply isn’t true. Numerous people prefer to apply with alternative lenders instead of banks. This is because such lenders are often more flexible, and they generally provide their decisions about applicants much faster than banks are known to do.
There is also a fallacy that using alternative lending can lower your credit score. This is unfortunate because securing such financing can actually raise your score over time. If you make payments on time and meet all the terms of your agreement, this will be reflected in your credit history.
Lack of Regulations
You may have heard that the alternative lending industry is unregulated. In fact, alternative lenders are required to follow state and federal regulations. These regulations may differ in some ways from the ones that banks must follow, but that is because alternative lenders are not banks. Nonetheless, these lenders are bound to implement disclosure and transparency in their practices.
Countless business owners may be deterred from getting financing because they think they must have a high margin to qualify. Alternative lenders extend financing to a wide range of businesses. Their requirements for such financing typically have nothing to do with high margins.
If your business needs financing, don’t allow outdated misconceptions to keep you from getting the funding you need. Contact Legacy Capital Lending to discuss the best kinds of alternative lending options for your business.