The 2007-2008 economic decline has left a lasting impact on mainstream financial institutions. Since then, many banks and traditional lenders have become reluctant to finance small businesses and other borrowers who require cash for personal needs.
Nevertheless, many non-traditional lenders have entered the marketplace to offer alternative financing options to businesses and borrowers. As a result, these non-bank lenders have gained a lot of popularity, often being the first point of contact for people seeking loans nowadays. Below are some insights into why it’s worth exploring these non-traditional loan options for your financing needs.
Quicker Access To Funds
Non-traditional loans typically tend to be transferred a lot faster than mainstream loans, so it would be best to explore these sources if your financing needs are urgent. Commercial banks demand to know your spending history, detailed tax returns, significant asset purchases, among others, all of which increase the paperwork necessary to process your loan application. Additionally, many banks have a multi-business day period that must pass before giving you your loan.
Alternatively, non-traditional loans are rarely accompanied by such paperwork and delays in the application process. Therefore, you can access your funds as early as 24 hours after being approved for a loan. However, it’s still crucial to find a trusted private money lender who can offer you your cash without plenty of formal processes. Reputable private lenders such as Pacific Private Money will come in handy when seeking hard money loans in California.
These hard money lenders in California offer alternative and flexible funding solutions for real estate transactions in San Francisco, Los Angeles, and other parts of the state. They offer a broad range of loan programs to real estate investors, including construction loans, bridge loans, rehab loans, commercial real estate loans, and flip loans. Also, this hard money lender generates their funds through private capital, and they evaluate each borrower’s unique loan scenario using their lending parameters. In addition, they have years of experience in the hard money lending industry and are widely renowned for their speed, reliability, and transparency.
Better Likelihood of Approval
A greater chance of getting approved is perhaps the most vital advantage of exploring non-mainstream financing options. For many startup owners, securing loans from traditional lenders is challenging since these avenues prioritize experience and a track record of solid performance before giving out loans. As such, banks often consider small business owners and other borrowers as “high-risk,” decreasing their chances of securing loans. On the other hand, the requirements for securing a loan from non-traditional lenders are less strict.
Therefore, you can still access your loan despite not having an established company history and perfect credit. Furthermore, it’s always a great choice to improve your property’s value if you’re a homeowner with access to these loans. Trusted window and home improvement enterprises such as All Weather Seal can handle these concerns.
All-Weather Seal is a home improvement company offering replacement window services in Holland, MI. Their Holland windows solutions include a wide range of replacement window styles that accommodate your budget, style, and energy-efficiency needs. Bay, bow, awning, casement, double-hung, hopper, slider, picture, garden, and energy-efficient windows are some of the replacement window options homeowners can select from to boost their properties’ curb appeal and energy efficiency.
Also, they’re fully insured and licensed contractors with an A+ Better Business Bureau accreditation. Furthermore, they have factory-trained and product-certified installers who guarantee client satisfaction through customer-focused service and top-notch workmanship.
Flexible Use Of Funds
Generally, many startup owners apply for loans to fund their entire business operations. However, some traditional lenders insist that you must use some small business loans in specific ways. Therefore, if you state in your application that you intend to use the funds for technology and staffing, your conventional lender may require you to do just that.
However, many alternative lenders allow you to use the money as you deem fit, as long as it’s for your company’s benefit. As such, if you operate a restaurant business, you can use your money for many things, including restocking supplies and repairing faulty appliances. Experienced appliance repair companies such as Oregon Appliance Repair can help with this need.
These appliance repair services in Bend, Oregon specialize in repairing many residential and commercial appliances for homeowners and businesses alike. Their experienced technicians can handle washer, dryer, stove, dishwasher, refrigerator, microwave, oven, patio heater, ice maker, barbecue, and freezer repairs. This way, homeowners in the region can restore an essential home or commercial appliances when they break down in no time. Also, their commercial appliance repair specialists cater to the needs of food trucks, restaurants, cafeterias, and catering companies. What’s more, they provide free, accurate estimates, alongside a 90-day labor warranty and a three year warranty on all parts.
To conclude, non-traditional loan sources are worth exploring for various reasons. The points above are some key insights into why these lenders’ services are essential to modern-day financing.