What Is An Alternative Lender?
Small business owners in nearly every industry often face a similar financial challenge – they have trouble finding access to working capital and other forms of small business loans. Credit concerns and a lack of collateral often keep applicants from qualifying for traditional lending options, while banks and credit unions seem perfectly willing to lend to those who don’t really need the cash. The entire process of seeking a business loan or applying for equipment financing can be a daunting and frustrating experience for any business owner, let alone those who don’t have perfect credit. To address this gap in the small business lending market, a new breed of lending has emerged to assist a greater share of business owners – alternative lending.
Alternative Source of Small Business Capital Loan
An alternative lender is one who provides loans, lines of credit, or cash advances to small businesses, outside of the traditional forms of credit offered by a bank, credit union, or the SBA. It’s an option that is growing larger every year for small businesses. According to Karen Mills, former SBA Administrator, “Alternative players have the potential to fundamentally change the way in which small businesses access capital.” While banks and credit unions will likely continue to serve a specific segment of the market, alternative lenders have the ability to construct more flexible lending options for a wider range of clients.
Consider Alternative Lending
If you are looking for a way to help your small business grow, but you are also contending with limited or no collateral, a poor credit situation, or minimal profitability, you will want to consider alternative lending. While many small business owners think that traditional sources of business capital (like banks or credit unions) are the answer, alternative lenders are often able to provide much quicker access to cash, a significantly easier and streamlined process, and more flexible lending programs process than these institutional lenders. Finding the right alternative source for capital is the first step in the process, so contact the experts at National Funding today to investigate your options. You might be surprised at what you’ll find when you work with a leader in the alternative lending field.
Find Out How Much Funding You Qualify For
When you apply with a traditional lender, you should realize that the process can take weeks or months. Traditional lenders are subject to arduous underwriting policies, regulation and processes that can extend the funding timeframe dramatically. Alternative lenders, like National Funding, generally provide an online process to apply and send supporting documents, thus reducing the time to apply to a matter of minutes. Plus, National Funding can get you a rapid decision so you won’t have to wait for weeks to hear “yes” or “no.” Funding is typically accomplished within a week or less, even as few as 24 hours, enabling the business owner to manage immediate expense concerns quickly.
Alternative lenders offer a wide variety of loans, lines of credit, and cash advance products. Merchant cash advances are one option that many alternative sources provide, and lenders like National Funding also offer solutions such as working capital loans, equipment financing plans, and additional services like merchant processing.
When you apply for a small business loan through a traditional lender, like a bank or credit union, the first thing that is checked is the owner’s personal credit score and the business’ credit profile. Most banks and credit unions require strong FICO scores, limited debt utilization, no late payments, and no public record filings. Alternative lenders are generally much more concerned with the overall revenue stream of the business and the company’s ability to repay the debt through cash flow. If you have poor or bad credit, an alternative lender will give you a much better chance at obtaining a loan approval.
Small Business Loans
When Banks say no .... National Funding says YES!
National Funding is a direct lender, which means there’s no middleman. We offer the flexibility to create small business loans with terms that meet your specific needs as a borrower. Our high approval rates mean that we can say ‘yes’ when traditional lenders say no. You’ll get a dedicated Loan Specialist who has specific knowledge about your industry and will provide you one-on-one personalized service.
There is no obligation to get started, and no need for collateral or a down payment. Click or call and receive a quick decision and funding in as little as 24 hours.1
Loans from $5,000 to $500,000
No collateral required
Easy, no cost, no obligation application
True to our mission, we encourage you to read the following policies and learn how they affect you as a client.
(1) 24 hours:
Fast approvals and 24 hour funding subject to receipt of required documentation, underwriting guidelines, and processing time by your bank. Funds are deposited into your business checking account as soon as the next business day after approval and acceptance of terms.
(2) Early payoff discounts:
National Funding offers special opportunities for its customers to terminate contracts early and receive a discount in the process. Equipment Finance customers who pay off the total remaining balance early, at any point during the contract, will automatically receive a 6% discount off the total remaining balance. Working Capital customers who pay off the total remaining balance in full within the first 100 days of the contract will automatically receive a 7% discount off the total remaining balance. We do not currently offer a discount on our lease contracts. Customers must pay off the balance in full, be current, and in good standing to take advantage of the discount within the time parameters.
(3) Automatic payments:
Loan payments are withdrawn via Automatic Clearing House (ACH) Monday through Friday excluding bank holidays.
(4) Wide variety of payment options:
- Equipment Financing: payments are remitted monthly with terms of 2-5 years
- Working Capital Loan: payments can be remitted daily or weekly with terms of 4 months up to 24 months
(5) Huge potential tax savings:
Section 179 tax deduction is a lucrative and important tax break that has been made permanent across the board, under the Protecting America from Tax Hikes Act (PATH Act). In most cases, the IRS allows your equipment lease or loan payments to be 100% tax deductible! You can secure the equipment, tools, and technology that you need, while also taking advantage of significant tax deductions — up to $500,000. Consult your tax professional for more details.
(6) Guaranteed lowest payment:
Pursuant to the terms and conditions specified in these Rules and Restrictions of the Guaranteed Lowest Payment, National Funding guarantees to provide the lowest payment on equipment leased through National Funding, for lease terms from 24 to 60 months, or to pay $1000 towards qualifying executed leases. Lease payment comparisons must be based on a lease in excess of $10,000, for approved equipment, and with the same terms and conditions as those offered by National Funding within seven days that the National Funding terms are issued. To be eligible, customers must provide a competitive lease quote without contingencies, and vendor invoice, and in the name of the lessee within seven calendar days of the date National Funding issues its terms. Guarantee only valid on competitive equipment leases. Equipment finance agreements do not qualify.
In the event that the monthly lease payment amount from the competing lease company or bank is lower than the monthly payment that is being offered by National Funding for the same equipment and pursuant to the same terms, National Funding will verify the validity and accuracy of the competing leasing company’s or bank’s payment options, terms and the vendor quote. National Funding has the option, in its sole discretion, to either beat the competing leasing company’s or bank’s monthly payment rate, or pay $1000 to the lessee. The lessee must provide National Funding with the competing company’s or bank’s signed lease agreement with payment terms/options, and take delivery of the equipment. Payments will be made within 30 days, and lessee is responsible for any taxes.
The Guaranteed Lowest Payment is available to both new and established customers of National Funding. This offer is valid for new lease applications only. The Guaranteed Lowest Payment is not retroactive — a previously funded equipment lease with National Funding is not eligible for the Guaranteed Lowest Payment. Only non-contingent offers of lease terms and payment are eligible. Offers made to lessee that include subsidization by manufacturers and/or vendors will not be considered in comparing competing offers.
The Guaranteed Lowest Payment may be discontinued at any time without notice.
To participate in the Guaranteed Lowest Payment program, if you have a lease agreement and vendor quote which you believe will qualify for the program, contact your National Funding Lease Manager.
Ratings & Reviews
We are very proud of what our customers are saying on TrustPilot