It is relatively easy to access credit for running businesses that have been around for at least 2-3 years as compared to those that are less than a year old.
Unlike what some new business owners assume, all lenders don’t apply the same terms of approval to an application for business funding.
However, there are many that have easier eligibility standards for borrowers but even they have to be sure that the borrower has a running business and steady cash flow.
If a borrower fulfills this condition, some lenders would even go to the extent of overlooking any need for collateral or checking the borrower’s credit history.
There are several types of funding that such lenders offer including some that can even be customized to suit the exact needs of the borrower.
One major barrier is that most traditional lenders are obsessed with collateral and checking the credit history of borrowers which eventually results in the rejection of their funding applications.
Nearly one-half of all the businesses in the United States are classified as small and if even a tenth of them close down it would have a major impact on the country’s economy.
The other side of this situation is that providing credit access to such small and medium-sized businesses is a serious growth opportunity for many alternative lenders.
Tackle shortfall in working capital with ease
Businesses irrespective of size have to occasionally deal with the shortfall in working capital. This mainly comprises overheads like payroll, raw or rolling stock, operational costs, and some others.
Cash flow disruptions are a common problem that every business faces and it first affects the overheads of a business. If not tackled on time, it can have a chain effect on your operations and compound your liabilities.
Such short-term funding requirements cannot be met with traditional long-term lending solutions. They are usually customized as per the situation.
For instance, cash flow volatility happens once twice or at best, thrice in a year for normal and running businesses and they do not involve very large amounts of cash.
Utilize growth opportunities with timely funding
Every business wants to grow bigger and every big business started small someday. At the average rate of growth, it takes years for a business to grow big.
Yet there are endless numbers of businesses that break out of their league much faster than most of their competitors and become renowned brands.
They are able to do that because at some point early in their growth journey they utilized the windfall profit opportunities that came their way.
Interestingly, in most such cases the opportunities come when you are least prepared for them. In other words, the opportunities come with a requirement for capital investment that most small businesses cannot raise on short notice.
However, if you manage to find the right direct lender, such capital investment can be made without any hassles.
It’s not always easy to find the right lending company although some borrowers manage to find lenders willing to fund their venture or project without any hassle.
Direct Lenders Funding is a leading company that has disbursed over half a billion dollars worth of funds to businesses of all sizes now.