The Power Behind Alternative Business Loans

2 min read • Jun 05, 2015 • Adam Michaelson

The first thing you need to know about alternative business loans is there is no one-size-fits-all solution for all the financing needs of every small business. Although there are times when an alternative business loan is the right approach, it’s far too often treated as a solution of last resort by borrowers who aren’t able to get financing any other way. Knowing your loan options and understanding when alternative financing is a proper solution will put you ahead of the curve if you understand all the terms. It is important to know why an alternative business loan is the right option for you small business.

When an Alternative Business Loan is the Right Option

One of the most obvious and common answers is that businesses seek financing when they’re faced with an unexpected opportunity or challenge that requires quick capital. This is the ammunition that makes an alternative business loan a powerful option. Alternative business loans provide the quick access to capital small business desires. There is also flexibility with repayment terms and innovative options that allow payments to fluctuate with sales volume. The access to funding provides businesses with the freedom to take advantage of growth opportunities.

Traditional Business Loans

Previous to alternative lending, business owners looking for $150,000 or less had one source of debt capital: banks. We are in a new day of age where every business owner has the world of information at their fingertips. The speed of business continues to race forward and business owners don’t have time to wait 30-60 days to find out if they are approved for a loan. Traditional lenders are not directly at fault for this process. Regulation doesn’t make it easy by any means and bankers are hesitant to stick their necks out for opportunistic small businesses.

Streamlining Alternative Business Loans

That said, alternative lenders have become increasingly more innovative when it comes to getting more loans approved — more rapidly. Celtic Bank is leading the way as they try to streamline the SBA loan process for loans under $150,000. Their goal is to fund in as little as five days. Lenders such as, SmartBiz/Golden Pacific and Superior Financial Group are doing the same. These lenders have partnered with technology companies to help streamline the process and make it more efficient. This business model has the potential to change things for Main Street business owners seeking alternative loan options in a more suitable amount of time.

The Power of Opportunity

Main Street business has a great opportunity right now with the advent of companies streamlining online lending. Alternative business loans from these lenders provide businesses with a quick turnaround to help maintain their business operation. Alternative lending has become a valuable tool for small business owners and when used appropriately this option can grow and strengthen a business.

Lendio’s mission is to empower your small business by making small business loans simple through options, speed, and trust. Whether you are looking for an alternative business loan or startup loan, Lendio offers hundreds of different loan products from a variety of lenders. Find out which business loan is best for you.


Adam Michaelson

Adam heads up product strategy at Lendio. He's been leading software product/design teams since 2001. See Adam's Profile on LinkedIn