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Alternative Funding: It Might Just Save Your Business!

Alternative Funding: It Might Just Save Your Business!

When your business needs a loan, most automatically assume that they need to go to a bank. However, in some instances alternative funding through a private lender may in fact be the better and more cost-effective way to go. So, how do you know if you should borrow from a bank or a private lender? Here are some pros and cons of each lender to consider.

The simplest answer for who you should choose for your business loan financing, is of course whoever you can approval from. Everyone wants a bank loan, usually because their interest rates tend to be lower. However, banks can also be quite opportunistic, so while they can lend funds at lower rates, they rarely do. This is simply because, there competitors have higher interest rates, thus banks know that all they have to do is sit just below their competitor’s figure in order to remain the preferred choice.

The other downside to banks is that, in all honesty they don’t care all that much about your small business loan, they have other ways to make money. At the end of the day, they really don’t need to fund your business loan. Plus, they usually have very strict regulations and guidelines that must be adhered to in order for them to approve a business loan. This is not true of private lenders, as they have no restrictions or alternative revenue generators, thus they are often easier to get approved by and have much faster funding turnaround times.

The answer to the question ‘which is better’, still remains that approves your business loan. The good news, if you don’t qualify for a bank loan, private lending is a great alternative funding option that may just save your business!
If your Gold Coast or Brisbane business is in need of a loan, at Quick Business Finance, our loan documentation is easy to read and jargon free. We make the process as straight forward as possible. Our terms are simple; fixed interest only terms, no hidden fees and no claims on any profit you make because of the loan.

Our focus is on delivering a smooth professional service within days of initial contact – not months as in the case of most traditional lenders.