The Insider’s Guide to Alternative Lending

Oct 5, 2019

The Insider’s Guide to Alternative Lending

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The old system of lending is inadequate for today’s business world. According to research from the SME Finance Forum, small businesses face major funding shortages. Last year, businesses needed about $5 trillion that institution-based financing was unable to provide.

Anxious to find new solutions for their financing needs, small business owners have increasingly turned to alternative lending as an easier source of money. Right off the bat, they usually notice higher approval rates and more robust resources.

“Loan applications from microbusinesses and small businesses are commonly rejected by traditional financial institutions,” says Business Insider. “Due to the looser regulations for alt lenders, they can capitalize on the high demand of smaller businesses […] Alt lenders have the ability to leverage a broad set of data and machine learning—allowing them to reach further into the small business lending market than incumbent banks.”

About the Author

Grant Olsen

Grant Olsen

Grant Olsen is a writer specializing in small business loans, leadership skills, and growth strategies. He is a contributing writer for KSL 5 TV, where his articles have generated more than 6 million page views, and has been featured on FitSmallBusiness.com and ModernHealthcare.com. Grant is also the author of the book "Rhino Trouble." He has a B.A. in English from Brigham Young University.

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