Benefits of Getting Business Financing from an Alternative Lender
As a small business owner, are you looking to expand? Perhaps a change of scenery to a new location or a simple increase in inventory? The present-day financing landscape has an increasing number of financing opportunities with several options to choose from. However, seeking out the right type of financing, specific to your company, can often become overwhelming. So, what does it mean to choose an alternative lender, and how do you know if this is an option you should take? At Select Funding we feel that in order to make the best decision for your business, you should know what to expect when you approach an Alternative Lender. Here are some reasons why getting funds from an alternative lender would be beneficial to your small business.
One of the most obvious and common answers is that businesses seek financing when they're faced with an unexpected opportunity or challenge that requires quick capital. Most of the time, small businesses don’t have the cash on reserve or an established line of credit that enables them to withdraw the necessary funds for these types of opportunities. Alternative sources of lending help fill that void by giving business owners access, availability and speed.
Some opportunities could include:
- Purchasing discounted inventory, raw material or new equipment at a can’t-miss price, such as a restaurant looking to make opportunistic purchases of wine during the holidays or a wholesaler in need of additional warehouse space and forklifts
- Buying out a partner or to avoid taking on a partner who will own a chunk of the business and profits for life
- Expanding to new locations
And some challenges could be:
- Harsh weather that forces a business to close days on end
- Fluctuations in the economy that impact the bottom line
- Unexpected occurrences that put pressure on cash flow and require an immediate influx of working capital, such as a refrigerator that stops working in a restaurant or a farmer needing to process the harvest
Read the full article at Entrepnreneur.com