4 Reasons Why Alternative Lending is Booming in America

Also known as peer to peer lending, and sometimes marketplace lending, alternative lending has witnessed a four-fold growth across America in the last few years. But if you are new to the field and unfamiliar with the details of the industry, then here is some quick information about alternative lending.

So, what exactly is alternative lending, and why is it really booming in a superpower like the US?

Alternative lending is a blend of technology and traditional lending institutions. It is a solution for those who seek to borrow as well as for those who want to invest. Using alt-lending institutions, the borrowers can connect with the investors who are looking to put their investments into a lucrative field. A win-win for both, don’t you think?

It is safe to say that alternative lending is a boon for small businesses. You have a business to run? Worried about whether it will flourish? Well, it is enough to rattle your brain. Smooth funding to help you on your way to success is the very solution that you should be looking for. This is where alternative lending comes into the picture.

One example is alt-fin deals like the ones given by Mantis funding, cash advances that provide SMEs with quick access to cash as an advance on their future earnings. There are many more similar deals that are perfectly tailored to the unique needs of small business communities in the US. As 99% of the American economy constitutes small businesses, it is hardly surprising that Alternative lending is thriving in the country.

1. Quick Turnaround
Where the traditional banking sector takes a few weeks to process applications, alternative lenders wrap up deals in just a couple of days. In some cases, you could apply for funds in the morning and get them in your bank by sundown! One example I have personally encountered is the Mantis Funding cash advance – the scenario involves an easy application process, which results in quick delivery of credit. I had applied for $10000 for my retail swimwear business and, from filling the application to getting money in my bank – the whole process just took 24 hours!

2. Flexible Funding And Varied Solutions
Alternative lending has been booming rapidly because of the many funding options that it provides borrowers. Depending on how you plan to manage your debt, Mantis Funding offers credit in the form of a merchant cash advance, invoice factoring, equipment financing, and more – for any amount between $2000 to $200,000.

3. Higher Approval Rate
Unlike banks, which have an approval rate of 20%, alternative lending provides borrowers with an approval rate of more than 50%. You don’t need to worry about your FICO scores for Mantis funding cash advance. The criteria that alternative lending checks for are varied and very holistic.

4. Risk-Averse Banks
Apart from the benefits alt-lenders offer to small business owners, many SMEs are opting for it because their banks have let them down! The very risk-averse approach of banks is leaving many small businesses under financed and driving them towards alternative lenders. These alternative lenders collaborate with small and medium enterprises to practice better yielding investment.

Personally, I opted for Mantis Funding cash advance because I got tired of waiting for my bank to give their decision! I needed cash quickly to invest for the upcoming season, and with the clock ticking away on my main-season, I decided to explore alt-lending. And boy, am I glad I tried it out! I have no Mantis Funding complaints – they were super helpful, very quick, and offered excellent rates. Working with an alt-lender like Mantis Funding turned around my business; I recommend you try it too!

Grow Your Business with Purchase Order Financing From Alternative Lenders

As a small business, you will have to use all sorts of funding deals to access the capital you need. In your search for funds, you will be hindered by many factors -your credit score, high repayment costs, or time. Different lenders and different financing services will have their unique set of pros and cons – you must consider these carefully and choose the deal that suits your business needs best.

In this article, we explore the details of a popular service offered by alt-fin lenders – Purchase order financing.

What is Purchase order Financing?

It is a financing service that allows you to access credit on the strength of a purchase order from a customer. If you are suffering from a cash flow problem, and are finding it hard to buy raw material or pay manufacturing costs to fulfill new orders, then you can take out an advance against the money you expect to be paid on delivery of the finished order.

Basically, you (or your suppliers) get cash from an alt-lender to complete an order and then pay it back once you are paid by the customer.

Some lenders, such as Mantis Funding from New York, pay up to 100% of the manufacturing costs.

Benefits of Purchase Order Financing

Easy approvals and hassle-free process: You don’t need perfect credit scores or high revenues to qualify for PO financing. As the funding is based entirely on the order you have already received, you just have to show your ability to manufacture and deliver on time.

Lenders like Mantis Funding review PO financing applications based on the original Purchase order and the estimates from your suppliers. With this information, they pay your suppliers directly. Once the order is fulfilled, your customer pays the Mantis Funding team directly, and you will get the amount reimbursed after fee deduction.

Unsecured funding: This type of financing does not require any collateral. As the lender deals directly with your supplier and gets the final payment from the customer, the need for collateral doesn’t arise.

Short-term, controlled lending offers: Most purchase order financing offers are for the short-term. The delivery and payment dates are clearly laid out and allow you to know what type of debt you are signing up for. In general, PO financing is for 60 days, and this gives you precise control over repayment costs and fees.

Fast processing speed: While a PO funding deal isn’t as fast as a Merchant Cash Advance (which lenders like Mantis Funding review and process in just a day or two), it is still a quick way to get the money you need safely – especially as compared to banks and credit unions. Most lenders take around a week to process PO financing, and this process can be sped up if your suppliers give their estimates quickly and assist the process.

When is a PO financing the best option for your business?

Purchase financing is a great option for –

1 – Wholesalers, manufacturers, and similar businesses.
2 – Companies with a weak or unestablished credit history
3 – Dealing with seasonal spikes in demand
4 – Companies on an expansion drive looking to add on new customers without tying up large investments.
5 – Businesses with tight cash flow situations due to low off-season revenues

If you find yourself in a situation that mirrors some of the details mentioned above, then do explore purchase order financing with a reputable alternative online lender. It could turn out to be just the boost you need to take your company to the next level.

Drop us a line below if you want to know more about purchase order financing or similar funding options.