As a small business, securing a loan from banks or a credit union is not easy. Traditional lenders and financial institutions aren’t willing to provide funding to small businesses without adequate collateral and trading history. This is where private lenders come in; they not only offer loans to small businesses but also let you negotiate a better deal.
Private lenders play a crucial role in small business financing; they help new and growing ventures achieve their goals and offer flexible terms. Although their services come at a higher interest rate than bank loans, the convenience and flexibility they provide are unmatched.
In this blog, we will discuss ways private lenders help small businesses with their financing.
Have Fewer Requirements for Loan Acceptance
The paperwork and requirements for a traditional loan can be exhausting and the process takes a long time. However, private lenders don’t have many requirements and perform quick checks on applications to decide whether they’re approved or not.
Due to fewer requirements, small businesses have better chances of securing a loan with good terms. Private lenders want you to borrow money for them to increase their profits and business— therefore, they don’t make it hard for small businesses to qualify.
Allow Full Control Over the Process
Private lenders give small business owners full control over the process and how they use the funds. With traditional loans, you have to specify the exact reason you’re getting the loan for and they are regulated by strict policies. This leaves little room for you to choose any terms and have to compromise a lot.
Private lenders will let you negotiate the terms and the interest rate on your loan. If you don’t get your desired terms from one lender, you will find many others willing to cater to your needs.
Funds Projects Banks Reject
There are various business projects that banks refuse to fund but a private lender will still offer financing solutions. Even after your loan got rejected before you can still get funds from a reliable private lender.
Simplify the Loan Process
A simplified loan application process is one of the major benefits of working with a private lender. Regardless of the funding you need, your lender will offer better facilities and benefits to make things as easy as possible. This benefits private lenders as well because they can retain more clients.
At Whitestone Fund, we have trusted private lenders offering small business financing in NYC. They offer a wide range of solutions, including working capital loans, fast line of credit loans in NYC, and merchant cash advances in NYC. Reach out to them for more details.