Finance & Lending

 

04 21 2017

Alternative lending benefits small businesses

04 21 2017

3 Alternative Lending Situations That Benefit Small Businesses

Businesses strive to be different from one another. Whether its your products, your customer service or your convenience, you have at least one feature that’s your differentiator. But no matter how hard you try, there’ll always be one thing every business has in common: A need for money.

Cash is the lifeblood that powers your company. However, there are times when funds seem to be just out of reach. During those periods, you know you need to find a solution, but what that might be isn’t always clear. The answer to your financial frustrations might be closer than you think.

An alternative lender can provide funds when you need them most to help you keep your company moving forward.

Here are three situations many businesses face that an alternative lender can help manage.

1. Reluctant accounts receivable

It’s an easy assumption that success comes from making sales. As anyone who’s struggled to collect on an account knows, though, this is only one step on the path to profit. According to a survey from Wasp Barcode Technologies, 51 percent of small business respondents said accounts receivable and collections are the biggest accounting issues they face.

Failing to receive funds is frustrating. Not only is the relationship with your debtor damaged, but those funds were likely necessary for another function in your business. While you hunt down that payment, your progress might be on hold.

An alternative lender can help with this headache by granting a short-term loan, enabling you to proceed with business as usual without holdups.

2. Expensive expansions

Much like a child will outgrow his or her clothes sooner or later, a growing business will eventually need to move into a bigger space or market. Whether you’re trying to move to a bigger building, offer your products to a bigger audience or hire a bigger staff, you’ll need capital to make the expansion happen.

Vinny Antonio, the president of Florida-based Victory Marketing Agency, told Forbes that cash flow management can be one of the biggest challenges when growing a business.

“Cash flow management for a rapidly growing, bootstrapped company can be harder than the world’s most difficult Sudoku puzzle,” Antonia said. “It’s almost a full-time job staying on top of who owes you what and who you owe, and then prioritizing those payments. All the while, you’re pushing for more growth, but with that comes additional expenses — most notably, your executive team. Good talent doesn’t come cheap, and you often have to find creative ways to lure the right personnel to your team.”

What’s really frustrating about cash flow issues during high growth is the fact that you know you’ll be making more money soon – but you need that cash now. An alternative lender is the perfect solution to this problem. Since you can show your plans for growth, an alternative lender will likely be happy to help out.

3. Stocking up for the season

As a business owner, you know what your sales cycle looks like. Florists know their busy season is in the summer when brides-to-be are getting ready for their big days. Toy retailers know that, come November, they had better have all the latest gadgets on their shelves so parents can load up on holiday gifts early.

Whenever your business’s busy season is, you know you need to invest in your inventory ahead of time. But, following a slow-selling month or two, you may lack the funds to accomplish that. Lack of cash on hand shouldn’t keep you from getting ready for your most profitable season.

An alternative lender can step in so you can make sure you’re all stocked up. A short-term loan to fill your shelves or warehouse with soon-to-be high demand items can give you a jumpstart to your busy season.

Every business owner will encounter tricky situations when managing their company. Sometimes, extra cash is enough to help you safely navigate these obstacles. Alternative lenders can grant businesses the financing they need, so they can carry on with their entrepreneurial endeavors without being held up by lack of funds.

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General Acceptance

Any applications submitted electronically shall have the same force and effect as if the application bore an inked original signature(s). The above information, together with any accompanying financial statements, schedules, or other materials, is submitted for the purpose of obtaining credit and is warranted to be true, correct, and complete.

 

US Patriot Act:

To help the government fight the funding of terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify, and record information that identifies each person and business that seeks a business loan. What this means for you: When you apply for a loan, we will ask for your business name, address, and Tax Identification Number. We will also ask for your name, address, date of birth, and other information that will allow us to identify you. We may also ask to see your driver’s license or other identifying documents.

 

For Loan/Merchant Services:

The Merchant and Owner(s)/Officer(s) identified in the application (individually, an “Applicant”) each represents, acknowledges and agrees that (1) all information and documents provided to National Funding, Inc. (“NF”) including credit card processor statements are true, accurate and complete, (2) Applicant will immediately notify NF of any change in such information or financial condition, (3) Applicant authorizes NF to disclose all information and documents that NF may obtain including credit reports to other persons or entities (collectively, “Assignees”) that may be involved with or acquire commercial loans having daily repayment features and/or Merchant Cash Advance transactions, including without limitation the application therefor (collectively, “Transactions”) and each Assignee is authorized to use such information and documents, and share such information and documents with other Assignees, in connection with potential Transactions, (4) each Assignee will rely upon the accuracy and completeness of such information and documents, (5) NF, Assignees, and each of their representatives, successors, assigns and designees (collectively, “Recipients”) are authorized to request and receive any investigative reports, credit reports, statements from creditors or financial institutions, verification of information, or any other information that a Recipient deems necessary, (6) Applicant waives and releases any claims against Recipients and any information-providers arising from any act or omission relating to the requesting, receiving or release of information, and (7) each Owner/Officer represents that he or she is authorized to sign this form on behalf of Merchant.(8) I consent to receive direct mail, faxes, text-messages, and e-mails sent by National Funding and its affiliates for the purposes of transmitting account updates, requests for information and notices, and (9) this request is for business and not for consumer purposes.

 

For Equipment Services:

I hereby certify: (1) the information provided is true and correct, (2) you are hereby authorized to investigate all bank, credit, and trade references, and said references are hereby authorized to release any requested information to you or your nominee, (3) such authorization shall extend to obtaining personal credit profile in considering this application and subsequently for the purposes of update, renewal or extension of such credit or additional credit and for reviewing or collecting the resulting account, (4) this information may be transmitted by us to you and by you to underwriter(s) for the purpose of granting me credit, either electronically or manually, and that by submitting this application, I take full responsibility for transmission thereof, (5) I am over 18 years of age, (6) I acknowledge my rights under the Fair Credit Reporting Act, (7) I consent to receive direct mail, faxes, text-messages, and e-mails sent by National Funding and its affiliates for the purposes of transmitting account updates, requests for information and notices, and (8) this request is for business and not for consumer purposes.

 

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By providing my wireless phone number to National Funding, Inc., I agree and acknowledge that National Funding, Inc. may send text and multimedia messages to my wireless phone number for any purpose. I agree that these text or multimedia messages may be regarding the products and/or services that I have previously purchased and products and/or services that National Funding, Inc. may market to me. I acknowledge that this consent may be removed at my request but that until such consent is revoked, I may receive text or multimedia messages from National Funding, Inc to my wireless phone number.

  
The Federal Equal Credit Opportunity Act prohibits creditors from discriminating against credit applicants on the basis of race, color, religion, national origin, sex, marital status or age (provided the applicant has the capacity to enter into the binding contract); because all or part of the applicant’s income derives from any public assistance program; or because the applicant has in good faith exercised any right under the Consumer Credit Protection Act. If for any reason your application for business credit is denied, you have the right to a written statement of the specific reasons for the denial. To obtain the statement, please write to National Funding Inc., 9820 Towne Centre Drive, San Diego, California 92121. Funding amount and credit approval is subject to a full credit profile review.