AFG Blog

6 benefits of getting financed through alternative financiers vs banks

Most people are always searching to find new funding and finance for their businesses or financial needs. Even though banks provide loans and these services; these are not the only paths to making a financial bind if you are stuck.
Despite their growing wide acceptance, some people still find commercial banks’ loans safer, while obtaining loans from other sources seems a little problematic.
People get frightened due to a lack of information about alternative sources of finance. This is not the case, and there are various advantages to utilizing alternative business funding sources.
Let’s get to the benefits of bank loan alternatives.
Here are six advantages of considering the alternative of bank loans for finance:

1. Save Time (Not missing the opportunity)

Probably one of the biggest benefits of getting funding from an alternative financier is that the time it takes to get the money in your pockets is so little compared to traditional funding options like banks. Trying to get financing from banks could be the sole reason why your business misses out on that high-yielding opportunity.
Innes Janse van Nieuwenhuizen (Head of Legal at CorpFin) said the following in an interview with BusinessDay:
“We have experienced an uptick in businesses turning to us as a lending alternative to traditional financiers as many have implemented more onerous processes, and delays in the approval process have become a more common occurrence.”
Mr. Van Nieuwenhuizen further explains how transaction speed has emerged as a key driver of business to alternative lenders. He explains, that while interest rates from alternative lenders are typically higher, the cost to the business related to missing the economic upswing is far greater.

2. Feasibility

The prominent feature of alternative sources of funding is that they create significant feasibility for the borrower because of the easy application process. That means you will not have to leave your place to apply for the loan.
One of the benefits of opting for alternative financing sources such as purchase order funding is that you do not have to go regularly to the bank to discuss the details of a loan.

3. Flexible Repayment Plan

Some lenders charge specific rates to promote this type of lending money. Those entities, which provide these types of alternative funding, offer several flexible repayment plans to choose from so that you do not have to worry about ending a plan’s deadline. Alternative funding loans offer the most flexibility since they permit the borrowers to select the loan plan.

4. Client and Financier relationship

In this imperfect world, it is impossible to have suitable loan credit, prohibiting many applicants from getting approved by a commercial bank for a loan. Before applying for a loan, an applicant must go through a long process of providing financial history, status, and sometimes their shoe sizes. However, it is the essential information you must provide; otherwise, your application may be refused if any information is missing.
There are minimal documents to submit for alternative funding sources, such as Purchase Order funding and other methods. In addition, some lenders will not dive into long periods of financial history, which will ease borrowers.
Making use of alternative financing allows you as a business and business owner to be evaluated, treated, and funded in a much more personalized way.
Innes Janse van Nieuwenhuizen (Head of Legal at CorpFin) said the following in an interview with BusinessDay:
“While we maintain a set of non-negotiable requirements, we analyse businesses on a case-by-case basis, taking into consideration factors such as their credit, cash flow, bank balance, track record and the purpose of the loan when making a decision.”

5. Various Options

Utilising funds provided by alternative financiers gives you the option to fund various options. You can now get funding for everything from business projects and opportunities to property that needs financing.

6. Hassle-Free Process

Finally, yet importantly, the process takes much less time than commercial banks to apply for loans on auto titles by private lenders. Borrowers will find that their loan is approved in just a few hours or days. This makes it a perfect option that people can turn to in needy times.

How can CorpFin help you?

CorpFin offers the following 8 different funding products:
  • Short-Tern Business Finance
  • Development Finance
  • Immovable Property Finance
  • Business Expansion Finance
  • Product or Stock Finance
  • Buy-Outs
  • Business Refinancing
  • Property Development Financing
Our application process is quick and easy. Simply apply online today!
Visit CorpFin for more information.