Tag: banks

Tip: Ignore The Banks, Try Alternative Lenders

Tip: Ignore The Banks, Try Alternative Lenders

Banks were once held in the highest esteem. We knew the names of them because we respected the work that they did. A hard-working person could go to a bank when he needed a loan for his business. Sometimes with as little as a handshake he could leave with a guarantee of the funding he required. Sadly, that is not the time we live in anymore. Banks are no longer respected and their lending standards have become impossibly strict for many would be entrepreneurs. Fortunately, alternative business loans are on the rise.

The New York Times has published a story about the success of businessman Ivan Rincon. He runs his swimsuit business in Miami where he also resides. When he was first getting started he turned to the banks to get the funding that his little shop was going to need. The banks flatly rejected his proposal because of a lack of collateral. Rincon could have given up at that point but he didn’t. Instead, he selected alternative business loans that worked for him.

In Rincon’s particular case he went with a merchant cash advance. These are alternative business loans in which the business owners borrows money and pays it back as a portion of their daily sales. It meant that Rincon was able to keep the lights on in his business while at the same time expanding it and paying off the loan. There is no way a traditional bank would have allowed for this setup.

More flexible loans are leading the way to the business future that is before us. Traditional banks may choose to remain stubbornly stuck in their old methods, but more business owners than ever are turning their nose up at that. They are insisting on greater control over every aspect of their business, including how they borrow.

Alternative business loans are great because they keep alive so many small business dreams just like Rincon’s. His little shop in Miami could have been just the latest causality in the ever growing list of business failures, but he decided to take a different path.

With the Internet available at everyone’s fingertips these days, there is no reason to settle for a loan that you don’t like. There are always other loans available which could be better suited to your particular business needs. The amounts that may be borrowed via the alternative loans are expanding as well.

Never constrain yourself to the old ways of thinking or the old methods of doing things. Modern consumers like it when a business is more flexible with them, and businesses in turn should demand more flexibility from their creditors. That is what Ivan Rincon did, and it has worked out splendidly for him and his customers.