Why Alternative Financing Options Might Be Best for Your Small Business
The small business financing
The small business financing landscape is continually changing, with more options available to business owners than ever before. About half to two-thirds of these businesses seek financing from a number of places, from owner investments to non-bank sources. As small businesses continue to face challenges when it comes to gaining access to capital and taking advantage of opportunities to grow, it’s important that they’re seeking the right type of financing for their particular needs.
Small Business Financing
Traditionally, term loans (small business loans) typically had a term of one to five years, appropriate for funds that are meant to be used over a long time. For instance, term loans are a great way of getting funding for fixed assets such as commercial real estate, business vehicles, or business equipment.
On the other hand, business loans from alternative lenders usually have shorter term lengths ranging from six to twenty-four months. If your business needs a loan for short term needs, you’re better off getting a loan from an alternative lender.
Advanced Application Process
Banks take several weeks or months to review loan applications. And if there are disagreements or concerns around collateral evaluation, then the process can turn into a crawl. On the other end of the speed spectrum is alternative financing. Assessing applications typically takes days — or in the case of TD Funding Solutions, up to a single day.
One of the main advantages of getting business loans from Texas TD funding Solutions is the speed with which they are processed. You will typically get a response within a day, and if your loan is approved, the funds are usually released within 24 hours.
The application process of alternative business loan is a lot easier than that of traditional bank loans. Texas TD Funding Solutions only requires you to pass a few important documents online, hassle-free!
Flexible Payback Options
If you don’t want to carry a loan for years, you can get a short-term loan that you can quickly pay back through daily payments via your bank account. Alternatively, you can stagger your payments over a longer period depending on your business’ cash flow.