How Alternate Financing Can Help A Struggling Business

Alternate financing can be a great way for a business to stay afloat when it is struggling financially. When a company goes to the bank for a loan, it will have to have a good credit score as well as collateral to secure the loan. However, most alternative financing options don't require good credit or much collateral.

No Credit Check Is RequiredA business doesn't have to have great credit to get a bridge loan or a factoring loan. Instead, the loan is secured by the value of the land that the company sits on or the value of accounts that still need to be paid by customers. When it comes to most companies, it can take years before the business has a credit score high enough to get a loan with favorable repayment terms. In other words, these types of loans allow a business to worry more about satisfying its customers as opposed to worrying about its credit score.

Multiple Loans Can Be Taken OutAs long as the business has money coming in, multiple loans may be made available at the same time. This gives a company the flexibility it needs to add more workers, land or manufacturing capacity while it waits for the money to start rolling in. A common problem for most new businesses is that they don't have the money to fill the orders that will provide the money for them to grow. Alternative lines of financing eliminate this problem for new businesses.

Revolving Lines Of Credit May Be Made Available

Revolving lines of credit can help a business keep its doors open when money may be tight. The good news it that alternative lenders may allow a company to open a line of credit without having to make payments for 90 days or more. Interest rates are often times kept low and interest may not accrue if payments are made in a timely manner. This helps a company keep its debt under control while being able to spend the money it needs to function properly.

They Provide More Money Than The Owner Could Get Himself

A small business owner may have to rely on his own personal credit score to secure financing for his company. However, this still may only result in a small line of credit that comes with strict repayment terms. For many business owners, getting financed with a business loan provides more working capital that can be repaid with more flexibility. In some cases, being provided with a loan that is secured with business assets can shield the owner from liability in the event that the company does go under.

Alternate business financing can provide many benefits to a struggling company. They offer flexible repayment terms, can be obtained by businesses with poor credit scores and are secured with business related assets as opposed to the personal assets of the owner. These are all reasons why the owner of a fledgling company may want to take a look at alternate financing.

Additional Information

If you are interested in learning more about alternative business financing for your company, please visit

EBF Express Business Financehttp://www.ebf.ca/financing-solutions