Advantages Private Lenders Offer to Small Business Owners
For many small business owners, finding adequate funding is a major challenge. Loan turndowns from traditional lending channels continue to rise because small businesses simply do not have the credit ratings, financials, collateral, or history to meet the prohibitively high requirements of banks and similar institutions. However, small business owners are learning that private lenders offer more advantages in the funding arena than traditional lending channels.
Private Lenders Understand Small Business Owners
One of the big things that sets private lenders apart from traditional lenders is that private lenders, for the most part, were small business owners. Private lenders are usually successful small business owners who have pivoted into finance. As such, private lenders understand the needs of small business owners, and are willing to work with entrepreneurs to find solutions that fit their needs.
Traditional lending channels offer debt-based loans to businesses, and not much else. Many small business owners cannot afford to take on extra debt in exchange for single-use capital. Additionally, small businesses often need solutions that fall outside of the realm of traditional loans. Private lenders offer a wide range of solutions to help entrepreneurs get lines of credit, improve cash flow, position themselves for growth, and get the equipment they need. Additionally, many of those programs do not place any debt on the books.
Not Everything Depends on Credit Ratings
Credit ratings are some of the main reasons why entrepreneurs get turned down for financing. Private lenders understand this, which is why they can offer funding that doesn’t depend on business credit ratings. There are financing programs that are based on revenue, invoices, and even purchase orders for future deliverables. What’s more, private lenders have the ability to provide higher funding amounts than traditional lending channels.
At Growth Lending Group, we believe small business owners deserve a better chance to thrive in today’s competitive marketplace. We work with businesses spanning all industries to provide tailored solutions to help entrepreneurs reach their goals quickly and affordably. To learn more about our wide range of funding programs, contact the team at Growth Lending Group today.