Finance & Lending

 

12 11 2014

Alternative Lenders Can Help Small Businesses Get Their Loans This Holiday Season

12 11 2014

Study Shines Light on Increased Need For Working Capital

Small business owners are in need of more working capital, but also face challenges in obtaining it, according to a new study from Pepperdine University Graziadio School of Business and Management.

The 2015 Pepperdine Private Capital Markets Project Survey Report showed that while 89 percent of privately held businesses have enthusiasm for putting growth strategies into action in the coming year, only 52 percent say they have the fund necessary to accomplish their goals. Forty-seven percent said they were on the hunt for bank business loans or business credit card financing, while 13 percent were turning to friends and family.

“Last year’s frothy private capital markets appear to have calmed down a bit,” Pepperdine Assistant Professor Craig Everett said in a media release. “Lending standards for senior debt seem to have tightened somewhat and private equity deal multiples have pulled back from a year ago. Mezzanine debt is the only capital category that appears to be continuing to increase its appetite for risk.”

Fortunately for small business owners, standard bank loans are far from the only option.

Alternative lenders have been making waves over recent years by providing business owners with quick, short term loans that often feature more favorable terms than those offered by traditional financial institutions.

In an interview with Inc. Magazine, David Gilbert, founder and CEO of National Funding, explained the advantages of borrowing from an alternative lender.

“Alternative lenders provide easy, quick turnaround for small business needs …,” he said.

The truth is, most times small businesses don’t really need long term financing. Working capital loans, merchant cash advances and small ticket equipment leasing can offer the flexibility small business owners need to keep operations running smoothly without the hassle and heavy debt obligation that comes from traditional loan options.

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Terms & Conditions

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 United States Government fight terrorism and money laundering, Federal law requires us to obtain, verify, and record information that identifies each person that opens an account. What this means for you: when you open an account, we will ask for your name, a street address, date of birth, and an identification number, such as a Social Security number, that Federal law requires us to obtain. We may also ask to see your driver's license or other identifying documents that will allow us to identify you.

 

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, 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, 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.

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.