Business

Types of Lenders For Your Business

When it comes to the world of business loans there are many options available to suit your unique business needs. If you’re considering a shorter term loan, there are many other lenders available now than in previous years. This also means that there a plenty of different application processes, eligibility criteria and a range of interest rates to choose from. Merchant Money short term business loans are an example of an alternate option from a trusted lender and offer personalised service online.

We’ve taken a look and put together a few alternate options from a traditional bank which can bring you many benefits.

Types of Lenders For Your Business

High-street banks

In recent years it has become more evident that traditional banks are not giving out loans the way they used to. With regulations and requirements become increasingly stringent, it’s tough out there for entrepreneurs. The high street banks will want you to provide a pile of never-ending paperwork about your trading history and projected incomes which as a start-up you may not have, or if you do, it’s not good enough to qualify. This means the time spent could be completely wasted and you must begin the process all over again.

Some alternative lenders now offer a bank referral arrangement which is authorised by the government to help businesses who have been rejected by the banks and need another option.

Challenger banks

These are banks which are similar to the traditional lenders in the products they have on offer but because they are generally smaller they have more flexible lending criteria. This means that they are open to more types of businesses and allow the application process to be a lot simpler and quicker. However, this isn’t always the case and sometimes you have to wait for approval.

Smaller niche lenders

In the financing sector, there are also smaller niche lenders who focus primarily on one or two types of financing options. They are able to focus on particular markets and tailor their offerings to their clients which is really great for small start-ups who need guidance and personalised service.

These lenders often have highly efficient online application processes and quick turnaround time, meaning you can have your loan approved and in your account within a day or two. Probably the most attractive aspects of these niche lenders are that they look at your business individually and pay more attention to its unique needs than what one would expect from traditional banks.

Independent lenders

These lenders can offer a variety of different products to a wide array of business sectors, but can also be specialists in a particular sector of business finance for their clients. They offer alternative finance options to small and large companies who need less restrictions when it comes to lending capital.

The independence means exactly that, they are able to offer flexible criteria and quicker application periods, which is usually the major downside of traditional banks. These lenders tend to be well establish and are able to provide business with both short-term and long-term loans along with all sorts of other financial products.