For business owners, acquiring the right funding is always a struggle. For owners of small businesses, this struggle can be even more severe. This is because financial institutions are often unable or unwilling to provide the funding that they need.
However, things are changing, and alternative funding providers such as First Down Funding are proud to be leading this shift. Companies looking for small business funding now have the options they need, which is good news for these businesses and good news for our country’s economy as a whole.
Let’s take a closer look at why more and more businesses are turning to alternative sources of small business funding.
Alternative business funding simply relates to any funding other than that offered by the traditional banks or other major financial institutions. However, there are a number of characteristics that are common to alternative business funding and that make it difficult for big banks to compete.
One of these characteristics relates to personalized service. Alternative business funding providers can work closely with you and your organization to get to know what you need, and then to deliver this in a way that suits you. This means long term solutions and flexible repayment terms that are more appropriate for small business owners.
Another key characteristic of alternative funding is the approval process. Following the financial crisis of 2008, it has become increasingly difficult for small businesses to get what they need from big banks. This is because these more traditional funding providers require collateral, down payments, and proof of a good credit history before funding is granted — something that can be difficult for small businesses.
Alternative funders work with your business to get to know your future transaction projections and develop a repayment scheme based on this. This way there is no risk for either party, and the funding can be secured more easily.
We’ve already touched upon some of the big advantages business owners can expect from alternative business funding. In this section, we are going to look at this more comprehensively and explore each advantage in more detail.
Your business needs funding. Your business does not need crippling repayment terms and huge amounts of risk. This is why alternative business funding providers should be able to work with you to come up with more flexible terms that are developed with your business in mind.
Big banks and other financial institutions might take months to approve a funding package. Alternative providers can achieve this in less than a day, often within only a few hours. The funding is also received much more quickly.
Banks may require businesses to put up property or another asset as security before funding can be approved. They may also ask for proof of a solid credit history. For companies who do not have the necessary resources, or who are not long established in the American market, this is going to be tricky. That’s why an alternative funding provider like First Down can really make all the difference.
One issue with the big banks is that they provide an impersonal service. They are simply not equipped to provide personalized services to small businesses in the US, and instead, offer only “off the peg” services. Working with an alternative funding provider makes it easy for your business to connect with industry experts who can work with and support you during the whole process.
All of the above advantages are critical to businesses in the United States, but they are underpinned by this one — the better chance of approval offered by alternative funding providers. Because there is less risk involved for both sides, alternative providers find themselves able to approve a raft of different options for small businesses, or they can work with clients to find a more suitable package.
Do you want to learn more about what First Down Funding can offer to you and your business? Get in touch with our team and find out what you need to know.
Are you ready to get started with one of our funding products? Hit the button below.