So, what relevance does this fact have? Should we just watch and wait? Well, unless you are planning to bring your own franchise to destruction, there is always an alternative solution you can try. This time, you should try the alternative lending option for your franchise business.
Since global recession hit the world in 2008, people were looking for alternative funding source for their business. There are only few people who came for a business loan from the bank, but it is not the only reason people have. As traditional funding method, it is mandatory for business to complete specific requirements. This process is a time-consuming one, but it is not the most important reason people have in putting their choice at alternative funding. Take your time to read the following points which will tell you the exact reasons people have for changing their preference to alternative business funding, rather than a bank loan.
Bad credit score
Your credit report is your financial activity report. There are various things financial institution can learn from your credit report, but the most important information it tell to a financial institution is your financial ability. There are three essential aspects it contain the transaction you have made with your credit card, lowest and the highest purchase using your card, and your payment date. Each of them is worth for your concern, but pay close attention to the third information. With simple analyzes on your payment date, financial institutions will be able to look whether you are good in managing your own money or not. Any delay in paying your credit bill will tell all financial institution that you are not capable of managing your own money and therefore you are also not capable in managing any money people trust to you. With this conclusion in their money, they will only ask you to repair your credit score before you can gain their trust. You come to get nothing. Yes, that is the bad news about asking for a bank loan, but it also becomes because people to become their preference to alternative funding source. Unlike financial institutions, alternative business funding does not look at your credit report. It uses an entirely different method in assessing your financial management ability since the application until the decision making. So, you should leave all worries you have about your credit score if you are going to search for alternative funding.
When you come to the financial institution and ask for a loan, physical collateral is mandatory. It gives physical guarantee to the financial institution that you will return their money before reaching the deadline. In any case that the organization finds that you are not able to return the payment, they will take the insurance and turn it into their belonging. For this purpose, it is mandatory for both financial institution and lenders to sign a collateral agreement before proceeding to further process. The whole process is quite complicated, if we should admit it. That is the reason alternative business funding frees you from any contract or agreement like this. You can proceed to the lending process even without signing any collateral form.
It has become a public secret that before bank approves your proposal, there are multiple, time-consuming stages you should pass. It becomes worse when you have no absolute guarantee that you will get the loan for your business even after spending much of your time. If you choose alternative business funding, you will soon find that there is no such time-consuming process it applies. Alternative business funding optimizes the internet in sending, reviewing, and approving loan application. Everything becomes simple, quick, and efficient in alternative business funding.
Getting the loan
Time is critical in business, no matter how simple or complex business you choose to run. There are different needs that need your care, as well as your immediate act, such your business expansion, advertising, renovation, and marketing. The bad news is whenever you come to ask bank loan; you cannot expect an immediate service. As previous parts of this post shows to you, there are various stages you should pass and none of them guarantees you quick completion. This is one important reason that finally makes people do their best in avoiding bank whenever they need urgent funding for their business. At the other side, this bad news for the financial system becomes good news for alternative business funding. Alternative business funding completely understands your need and your urgency as well. This alternative source offers less time-consuming processes than conventional financial institution along with quick and high approval rates. You can get your money quickly to boost your business without any need to wait for weeks.