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Finding funding for your small business may seem overwhelming, but we are here to help! After doing your homework, you have an idea of the documentation you need to get funding for your business, but now you may be wondering:
Should I use an alternative funding company or my bank?
That’s a great and completely valid question! Let’s take a look at what each are and why you might choose one over the other.
Simply put, alternative funding is a means by which you secure financing for your business through a company outside of the traditional bank solution. Another term you might hear related to alternative funding is fintech (financial information technology). Many small businesses reach out to an alternative funding source after being declined for funding from their bank.
According to the Federal Reserve Bank, many small businesses get declined for funding because their debt is too high, their credit is too low, they do not have enough collateral, there is not enough credit history, or the business is not performing well.
In a nutshell, traditional banks have different requirements for funding businesses. Most banks prefer to fund larger business loans, (greater than $1million) and most small businesses are looking for a smaller funding amount.
Well, we are a bit biased here, but let’s just cut to the chase. First, the process is a lot quicker and easier. It takes a lot of time to deal with getting a loan from a traditional bank, and you could be potentially wasting a lot of time that you could be spending on your business. At Coast Funding, our streamlined application process takes no more than five minutes and requires minimal documentation. Once approved, you can receive your funds in as little as 24 hours!
It is more difficult to receive an approval to fund your business from a traditional bank. With higher regulations and the desire to fund larder deals, it is not easy for small businesses to get funding from their bank. Instead, alternative funding solutions have been on the rise in recent years, giving small businesses a chance to receive funding when their bank says no.
If you have been declined by your bank, or you are simply looking to fund your business and you don’t want to deal with your bank, we would love to talk! Speak to one of our funding advisors today to explore your funding options.
This content is for educational or informational purposes only and should not be taken as legal or financial advice. The information in this content does not necessarily reflect the views of Coast Funding Services LLC or its partners.