Small Business: Alternative Financing Options

2 min read • Jun 22, 2015 • Adam Michaelson

Why can it be so difficult for small business owners to get a traditional loan? Let me tell you a short story about Annie, a restaurant owner in Henderson, Nevada. Her small business-Annie’s Gourmet Italian was growing rapidly and she needed to expand fast. Her first stop was a trip to her current bank, which is a national lending institution. She was applying for a small business loan and was unfortunately turned down. You may look at the bank and consider them the bad guy here but technically, this isn’t the traditional lenders fault. The processing and profitability for this size and type of loan is simply not practical for their type of institution. The best they can do is provide her with a business line of credit.

So what is Annie to do? She has reached a roadblock while trying to operate her restaurant and in order to overcome this setback she needs to solver her current cash-flow situation.

What Is Alternative Financing?

The term alternative financing doesn’t necessarily encourage a lot of confidence. In fact, many industry leaders are pushing to change the title to, “Innovative Lender.” Besides the name, alternative financing provides a very important service for small business. These lenders help businesses that normally would be turned down by traditional lenders find financing in other areas. Alternative business loans from these lenders provide business owners with the loan amount they need along with a quick turnaround to help maintain their business operation.

Who Are Alternative Lenders?

Since 2012, more than 100 participants have entered the alternative lending industry.  These companies offer a variety of alternative financing options from term loans to cash advances. The flexibility that also comes from theses options make it an excellent resource for small business owners.

What Are My Alternative Financing Options?

Small businesses can benefit in a variety of ways from alternative financing options. Amongst their flexibility and repayment terms, alternative business loans also provide simple application processes in which business owners may yield greater benefits.

Online Applications

Most alternative lenders have embraced technology, providing quick and easy forms that only take minutes to fill out. This allows the owners to focus on what really matters-running their business.

Simple Requirements

Typically, most lenders will consider your credit score, time in business, and possible collateral to determine whether or not the small business owner will be able to get a loan.


Stable monthly/daily payments, flexible options for business purposes for purchasing inventory, tool and equipment purchases, payroll, expansions, and many others, while also improving your credit.

Small business owners have a great opportunity right now with the advent of companies providing online lending. Alternative financing options from these lenders provide businesses with a quick turnaround to help maintain their business operation.

Lendio’s mission is to empower your business by making small business loans simple through options, speed, and trust. Whether you are looking for an alternative business loan or term business loan, Lendio offers hundreds of options 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