By Ezra Luca
A few years back, when I was still in the early stages of Internet Marketing, I came across a very interesting concept: the Alternative Funding Services. The concept was simple enough to understand, yet it was somewhat complicated.
For anyone unfamiliar with these terms, Alternative Funding Services simply refers to any financial transaction that is conducted “outside of the normal” lending process, where the typical party, such as a bank or a private investor, lends money against an asset (usually real estate). This transaction typically takes the form of a receivable or an asset-based loan.
So what are the benefits of these kinds of financing? For small businesses, perhaps the most obvious benefit is that they can obtain funding relatively easier than they could have previously, without the hassles of a traditional lender.
First, there are no upfront costs. Second, there are usually lower interest rates to be paid on the loans. Third, there is no need for a credit check or an appraisal. These are three reasons why it is ideal for small businesses to use alternative funding services.
But, the benefits do not stop there! There are many other benefits to consider as well. One of the most appreciated benefits of small business financing is that it provides a source of emergency cash when necessary. Another great benefit is that it can provide business funding for new and innovative ventures.
However, there are some disadvantages associated with using alternative funding services. For example, it can be difficult to find reputable, high-quality commercial lenders. It is also quite easy to fall victim to fraudulent business financing schemes.
Finally, using this type of finance can be quite costly, especially for small business owners. However, all these benefits make it well worth the effort to seek out this type of finance for your business. While traditional commercial loans can be expensive, with better benefits and less risk, they still can prove to be quite burdensome.
Small business owners looking for a reliable source for working capital should consider a merchant cash advance. A merchant cash advance can offer your company the additional funding it needs to increase its cash flow and improve its cash management problems. As a result, you will be able to solve the immediate cash flow crisis by obtaining quick cash. This will allow you to invest in more pressing problems, thereby improving your overall profits.
A good alternative funding group for businesses looking for a private investor would be an equity crowdfunding platform. An equity crowdfunding platform allows business owners to receive funding from several sources, such as private investors and angel investors, instead of just one source.
As a result, you can raise a larger amount of money, as you would not need to rely on only one funding source. This type of funding can be an excellent way for business owners to raise money quickly, as well as in a relatively short period.
