BOTTLENECKS OR STRAIGHT-UP MISCONCEPTIONS? LEARN THE REAL TRUTH ABOUT ALTERNATIVE LENDING SECTOR
0 likes9 views
The alternative lending sector is increasingly becoming a viable option for medium and small enterprises, debunking misconceptions that only desperate credit seekers use it and that banks should always be the first point of contact. Many business owners prefer alternative lending due to its flexibility, faster approval processes, and less stringent requirements compared to banks. Reputable companies like Cresthill Capital and Mantis Funding demonstrate that alternative lenders are reliable and can positively impact borrowers' credit scores when loans are repaid responsibly.
BOTTLENECKS OR STRAIGHT-UP MISCONCEPTIONS? LEARN THE REAL TRUTH ABOUT ALTERNATIVE LENDING SECTOR
- 2. LEARN THE REAL TRUTH ABOUT ALTERNATIVE LENDING SECTOR
- 3. The alternative lending industry has been making waves, and it is assumed that the coming decade of the 2020s would see a significant rise in the alternative lending-accelerated growth of medium and small enterprises. The existing gap in credit flow towards the business sector can be bridged with effecting alternative tools, such as commercial business loans, peer to peer lending, crowdfunding, and factoring.
- 4. While the alternative lending sector is fast emerging as the go-to option, yet there are some misconceptions about it. Are they real bottlenecks or just plain misconceptions? Let’s find out.
- 5. Only desperate credit seekers look up to the alternative lending sector The biggest misconception that I have heard about the alternative lending sector is that only desperate credit seekers opt for it. This notion is not just wrong, it is senseless. Banks turn down a credit-seeking application for various reasons ranging from lack of appropriate collateral to not-so-fantastic credit score. If alternative lending companies gave loans to only the desperate ones with no solid standing, they wouldn’t be operating till now. The entire industry would have gone belly up a long time ago.
- 6. Lie any other business, alternative lending companies also assess the risk logically and then offer credit at an appropriate interest rate. After all, which lender wants to see its borrower fail? None! The success of reputed alternative lending companies like Cresthill Capital And Mantis Funding does refute the above misconception.
- 7. Your first credit-seeking option should always be a bank Or, as I hear many times, look up alternative lending sources only after your application has been rejected by banks. This, again, is a big misconception. The truth, in fact, is that many business owners find it much easier to avail of financing from an alternative lending source as compared to banks or credit unions.
- 8. There are no hassles like endless documentation, unusual delays, there is less judgment and more flexibility. The majority of alternative lenders like Cresthill Capital and Mantis Funding do not require credit scores or collateral. Seekers also get cash advances of different sizes as per their requirements. Besides, approval and disbursal are faster. Any enterprise or business, looking to expand its operations and grab an available opportunity in time, would prefer a good alternative lending source. Time is money
- 9. Alternative lending sources are unreliable, and you could hurt your credit score 100% misconception! Alternative lending sources are reliable, and while they don’t have stringent lending regulations to follow, reputation matters to companies in the business. One example is Crest Hill Capital - in a digital era, where every bit of information is available online, you will be hard-pressed to find Crest Hill capital complaints.
- 10. The company has worked hard to maintain its pristine reputation, and that wouldn't have been possible if the business model was unreliable. Alt- lenders aren't banks, which means they do not have similar capital requirements, but they do need to adhere to lending regulations of the government strictly. And no, seeking credit from an alternative lending source IS NOT going to hurt your credit score. In fact, if you repay the loan responsibly, you can actually improve your credit score. Wonderful, isn’t it?
- 11. Alternative lending companies like Crest Hill and Mantis are thriving because of their strong ethics, flexibility, and ease of doing business. They bridge the gap between the financing needs of small and medium enterprises and smooth credit flow. Got more doubts? Ask us in the comments below.