5 Best Lending Alternatives to Bank Loans

It is a fact of doing business that sometimes the cash simply doesn’t flow in the way you would like it to. Fortunately, there are solutions for the problems that can arise from being in the red. Traditional bank loans are no longer the only way to get the money you need to keep operating your company. There are several alternative lending options available to help you keep your business growing and thriving in a competitive market. Here are some of the top financial products currently available.

  1. Unsecured Business Line of Credit

If you have to make repairs or upgrades for the business, but the capital just isn’t there, an unsecured business line of credit could be what you need. This type of loan is generally not secured by collateral, so you won’t be risking the entire business in order to expand it.

  1. Franchise Financing

Many business owners are part of larger franchises, but that doesn’t always mean they have access to financing through franchisors. Franchise financing is one form of alternative lending that can help business owners get the money they need to make their branch thrive and flourish.

  1. Accounts Receivable Financing, or Factoring

Accounts receivable financing is a great idea for any company engaged in business-to-business transactions that can take months to receive payment for. By factoring, you receive the payment before the monetary transaction is settled, allowing the business to continue functioning as it should. Factors also handle the accounts receivable, streamlining your company.

  1. Consumer Finance Program 

Sometimes the issue isn’t the company’s liquidity at all, but the customer’s. Some companies are able to offer their customers flexible financing, but this can be another costly expense of doing business. Financing can be made available to customers for their purchases through a consumer finance program. This is an excellent technique for boosting sales while relieving the company of an administrative burden.

  1. Asset Base Line of Credit

An asset base line of credit provides a revolving line of credit that can make immediate access to cash possible for your business. The amount of credit available is based on the company’s inventory, equipment, and accounts receivable. This is a great choice for stores and services that use specialized equipment.

Alternative Lending a Viable Option

There are many options to explore when your company needs an infusion of resources. These are not the only ones available, so be sure to check all of the financing options that are open to you before deciding on which one best suits your purpose.

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