4 benefits of alternative lending for businesses
Alternative financing can be beneficial for businesses of all sizes, offer many advantages and is cost-effective. With asset-based loans and other financing solutions, alternative lenders effectively fill in financing gaps for businesses and entrepreneurs.
If you are looking for a source of financing for your business and considering using an alternative lender, here are some of the benefits of using alternative lenders.
Bespoke lending solutions
Alternative lenders provide your business with custom lending solutions that are specific to your business needs. For example, asset-based loans leverage your existing assets such as inventory, accounts receivable and other capital assets to solve your business needs. Alternative lenders partner with your business to understand what specific cash flow problems you have. They provide bespoke financing solutions that help your business with working capital and liquidity needs while offering favorable lending terms, rates, and requirements.
More financing options
Alternative lenders usually offer a variety of options to obtain financing, such as asset-based loans and factoring in various forms. An example is accessing cash using your accounts receivable balances as collateral for your business loans or selling your accounts receivable for invoice factoring. Other forms of financing offered by alternative lenders include: equipment financing, PO financing, inventory financing, and small business loans.
Quick access to cash
As a business going through cash problems, the most important thing you need is fast access to cash for continuous operations or planned growth. Alternative lending companies provide a quick process required to get financing. From inquiry to application and approval to funding, alternative lenders strive to make the process quick with less stringent requirements and a high commitment to your success.
Higher approval rates
With alternative lenders, not only is the lending process quicker, but the chances of approval are also generally higher. Most alternative lenders understand that businesses experience cash flow difficulties when going through a growth phase, business restructuring, reorganization or seasonal and economic fluctuations. They are highly informed about how business situations may lead to cash crunch or the need for external financing, thus they are more flexible in providing approvals for business loans and other financing solutions.
The benefits of using alternative lenders are not limited to the above. Sometimes, using alternative lenders helps you get clarity on business plans and cash needs. It is important to search for alternative lenders that offer the best financing options at affordable rates with more flexible requirements.
The Accord Advantage
At Accord Financial, we offer alternative financing and asset-based lending solutions for businesses in different stages of growth and operations. Coupled with our years of industry experience, we challenge the status quo while engaging high-end innovative strategies and trustworthy collaborations to deliver successful cashflow solutions.
Our inventory financing and equipment financing solutions offer great options to utilize your business assets as a form of leverage to obtain financing for your cash flow needs. Eligible invoices can also be used as a collateral for accounts receivable financing or factored for upfront cash.
Contact the Accord team to get financing for your business: +1-844-932-9940 (Canada) / +1-844-725-4225 (US).