If you are a small business owner in need of capital, then the chances are that you have heard about alternative lending. In fact, you probably have TOO much information by now about alt-lending. Even a simple Google search tends to spew out a whole bunch of sponsored content, all of which can end up confusing you further. Let us cut through the clutter and get to the heart of the matter – how to find and select the right lender with the right financing deal for your business. You will have to check for some basics - Does The Alt-Lender In Question Offer Flexibility?One of the most important benefits of alternative funding deals is the extreme personalization most companies offer. They are not bound by federal banking laws and can pretty much set their own terms. For example, Mantis Funding, which operates out of New York, offers considerable reductions and changes to its terms to oblige its clients. While talking to an alternative lender, do try to understand how accommodating it is. Is it willing to negotiate on terms, rates, and amounts? If yes, then it should certainly make it into your shortlist Do Others In Your Industry Recommend It? Each industry has its own challenges and needs, and it is usually best to find alternative financing companies that serve businesses similar to yours. This will ensure that their offers will already be customized to your specific needs and that they will have enough understanding of the industry to give you the best deal. Reach out to industry forums or groups to get recommendations or to check up on certain alternative lenders. Does The Company Have A Good Reputation? When government regulations can't be implemented, then it is best to deal with the most reputable lender in the industry. You don't want to sign up with a dodgy company and get stuck for years in a bad credit situation. Checking for online reviews and looking for word of mouth referrals are two great ways to understand the real operations of a company. For example, the alternative lender Mantis Funding has reviews that are uniformly good across several social media and other online forums. Positive reviews across diverse sources signal genuine feedback. Does It Have A Simple Approval Process?One of the most attractive features of the alt-fin industry is the ease of getting funding. You want to be sure that the financing company you select offers all the speed and simplicity associated with the sector. For instance, Mantis Funding reviews its applications in a very balanced manner, which doesn't just stop at FICO scores but goes on to consider business transactional data such as monthly and annual revenue and expense patterns. Like most alt-lenders, Mantis Funding also processes the whole deal –including approval – in just a couple of business days. Chat with company representatives to find out the exact documents, rates, and timelines. Most have extremely helpful case managers who guide you through the entire process. A pleasant and helpful customer care executive could give you an inkling about the culture of the company. Conclusion: For most SMEs, funding is not a one-time affair. You will need liquidity time and again as your business goes through its development phases. Finding a trustworthy and helpful financing partner in the first go is an excellent way to secure long-term access to capital. So, please don’t rush and don’t wait till you need money to start looking around. Begin your search now!
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