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!