While there are challenges for owners seeking small business loans in today’s market, there are also plenty of solutions to explore. That was the takeaway from National Funding Founder and CEO David Gilbert’s recent chat with Forbes contributor Brent Gleeson.
“National Funding is more of a custom shop for small business loans,” Gilbert said, outlining the differences between the alternative loans offered by National Funding and the more traditional loans provided by financial institutions like banks and credit unions. “Our one-on-one approach is significantly different from that of a large bank. Our credit window is wider than what a bank would consider, so we see a lot of people that have been turned down there.”
Gilbert went on to highlight the speed and simple paperwork that separates National Funding from other types of lenders.
“Additionally, our process is much faster, so where a bank may take 30 days or even longer to put something together, we can do it in as little as a day,” he said. “That’s not the rule, but on the other hand it’s not uncommon either. There’s also less paperwork required, which also makes it easier to do business with us.”
It’s important for potential borrowers to be aware of their options, as Gilbert pointed out that loan demand is much higher at the moment than it has been in the past.
“The economy is picking up, and that means that these businesses are seeing more opportunities to take advantage of that,” he told Forbes. “In turn, they’re seeking capital to expand their ventures. This could be in the form of added inventory, or expansion of their location, or maybe more advertising, and sometimes added business equipment.”
Nontraditional loans the new norm
Besides a significant uptick in loan demand, Gilbert also spotlighted how the need for nontraditional loans has grown. While small business working capital loans remain important, owners are also turning to equipment financing, merchant cash advances and credit card processing to serve their specific needs. In fact, Gilbert had spoken to Forbes previously about how certain financing options like equipment leasing are filling a sizeable niche in the marketplace.
Utilizing options at the right time
It’s vital for business owners to put these options to work at the right time, and with the holiday shopping season fast approaching, that time may be now.
In a separate interview with Inc. Magazine, Gilbert spoke about how forethought can help businesses capitalize on seasonal factors without hitting bumps in the road.
“It’s all about planning,” he told the magazine. “Knowing your needs up front can avoid a lot of headaches.”
