Alternative financing is becoming more and more popular in the business world. However, many people still do not understand precisely what it is or how it can help their small business grow. Some may be turned off by this funding method due to negative stereotypes that it may have, but it is a common practice that does not carry many risks if used responsibly.
Here we will look at alternative financing and why companies such as Byzfunder can be invaluable.
Alternative Financing in a Nutshell
Alternative financing allows businesses to receive money from an outside source to cover costs to help their business. Alternative funders will lend a business a set amount of money, and the business owner will eventually pay that amount back. This is a blanket and straightforward definition of the practice, as there are many different methods of alternative funding that are all common and widely practiced. Small businesses often use alternative financing as they look to grow their business in its early stages of development.
What Can Alternative Funding be Used For?
While alternative funding is often used to help small businesses, the actual uses of the extra funds can be very diverse. For example, alternative financing is explicitly used to acquire new pieces of equipment. These equipment loans are often beneficial, as many small businesses may not have the funds to purchase necessary equipment independently. Another everyday use of alternative funding is obtaining a business credit card, ensuring that your company has a line of credit at all times. Alternative financing is very flexible, and its many uses have helped make it a trendy avenue for small business owners.
Is This Different from Using Banks?
While alternative funding works may be similar to taking out a loan from a bank, the real difference is in the quality and dedication of the lender to provide you with the best possible funding method and overall customer service. Alternative financing is also a faster, less tedious process that can be approved within a few hours of applying with less paperwork and hassle. Alternative funders such as Byzfunder are constantly available to answer any question to ensure that you are comfortable with your funding method and understand it completely. Unlike banks, these companies are not looking to take advantage of you and your business. Instead, they want to help you grow your business into something special.
Is Alternative Funding Difficult to Obtain?
Most alternative funding lenders have simple requirements that are not outlandish compared to many conditions that today’s banks have. For example, Byzfunder has the following criteria:
- Be at least six months in business;
- Have at least $10k a month in revenue;
- Have a 500+ credit score.
These are reasonable, and most small businesses will not have an issue. Sometimes, different methods of alternative funding also have additional requirements that must be met to secure them; some may be easy to meet while others may prove to be more difficult. However, as previously mentioned, most small businesses will not have to worry about this, as financially, they will be alright.
Alternatively Fund Your Business Today
Alternative funding is an easy and efficient way to help your business acquire the resources it needs to grow. With different methods available and companies like Byzfunder willing to help, you are just seconds away from securing funding and changing the lives of you and your business. Contact us today to learn more about alternative funding and its uses.