With the Sequester Bill signed and uncertainty in the small business sector in play, is it a good time to look into the benefits of alternative funding sources? You might want to hold on and wait to see what the outcome will result long term but then again why should you gamble with the unknown? And exactly what is alternative funding?
Alternative funding is exactly what it is, alternative to the traditional banks and financing companies. While traditional banks continue to be constrained by federal regulations and unheard of restrictions, alternative sources offers their own private money and are not concerned by your small business credit scores or balance sheets but rather they look at whether the deal makes financial sense. For instance, if your business would like to offer short term credit to your clients and your clients have outstanding resources and a good credit score, you have an excellent chance of obtaining immediate cash for your invoices without having to wait 30, 60, 90 or 120 days to receive payment from your creditworthy clients.
How does it work? Simply sign up with an alternative lender to get approved. The approval process can take from 5 to 7 business days as opposed to the 30 days to six weeks or longer through traditional lenders. And in some cases through traditional lenders you might get declined and be forced to try another traditional lending source just to go through the lending process all over again. But with the alternative lender the process is about verification and once you get approved in the 5 to 7 day process you have an excellent chance for approval because the alternative lender will base their decision on the credit of your client rather than on your own business balance sheets. And once your account is in place you can continue to access immediate cash within 24 hours without ever having to fill out another application because the original application remains in place throughout the life of your business.
The rates will vary and are slightly higher at first but has a tendency to decline during the course of continued use of their services.
For more information on alternative funding sources check out a company called Matrix Equity. They have access to over 500 sources of alternative lenders and can provide a value to keep your business prospering during good or rough economic times. Remember, when times get rough on one end does not mean the end of your economic world. There is always a solution somewhere. Wealth is never lost but wealth is just transferred from one perspective to another. Don't be constrained by the sequester which basically means to segregate or set apart, to withdraw into seclusion. Don't be secluded.