What Is Alternative Lending?
Alternative lending is a type of lending that takes the strain off the business and makes it easier for that establishment to obtain funding. Alternative lenders require a business to be open for only a fraction of the time that a traditional lender does. For example, a restaurant owner can apply for alternative lending only a few months after it opens. Examples of alternative lending products are merchant cash advances, unsecured loans for bad credit, restaurant loans, and business lines of credit. Alternative lenders do not view their products in such an absolute fashion. They are willing to work with businesses that may have flawed histories.
Qualifying for Alternative Lending
Alternative lenders are making it easier for businesses to obtain the funding they need to support their operations. Companies that collect most of their payments by credit card have an advantage over other companies. A business that generates at least $2,500 per month in credit card sales can qualify for a cash advance today. Businesses that do not take credit cards are still eligible for alternative funding, but they need to have a higher monthly sales revenue.
The second thing that a business needs to qualify for alternative lending is proof of the income it claims. The proof may consist of credit card processing slips, bank statements or both. The lender will need to see concrete proof that it will be able to collect its dues from future sales. Alternative lenders allow a business the freedom to operate without stress during the course of the loans. The companies take their repayments from sales that the borrower receives in the future. Therefore, the lenders have to feel confident that they will be able to collect these funds for the duration of the loan terms.
Advanced Fund Network is in business to fund businesses. The company offers a wide variety of loan options for organizations that show promise and persistence. AFN has products for small, medium and large businesses. Large businesses can apply for loans of up to $3 million. Businesses with bad credit can ask for help as long as they have FICO scores that are higher than 500. A business owner who would like to learn more about AFN’s products can contact someone at 888-310-3110. A specialist will be delighted to introduce that person to AFN’s wealth of helpful services.