Banks are said to approve less than a fifth of requests for loans when it comes to small businesses. Not only is it a matter of creditworthiness, there are a lot of “standards” a business has to meet in order for a bank to determine if it is a potential client. With alternatives expanding, small businesses now, more than ever, may be able to find a credit source to build their products and compete in the market. Here are a few reasons why one alternative, boutique loans, are a great financial resource for small businesses with plans of future and continual growth.
More Personalized and Customized To Meet Your Needs
Whereas banks often require a significant collateral in order for a creditworthy small business to secure a loan, boutique lenders may or may not require collateral and often approve potential clients at a higher rate. Not only that, boutique lenders are constantly transforming in order to address market demands. What does this mean? Boutique lenders often offer more personalized and customized loans to meet a small businesses needs.
Quicker Response Rate
Boutique lenders, which are private lending sources, also often have a quicker response rate. Why? Boutique lenders address the needs of “niche groups” meaning one lender may specialize in small business loans and another in personal loans. They also use a variance of lending methods in order to meet client where they want to be met.
Less Hassle and Credit Check
Speaking of client needs, boutique loans are also noted to be less hassle and often will not require a credit check. Small businesses that simply do not qualify for a bank loan because of some issues in small print are turning to boutique lenders as a source of financial safety today more than ever. With many credit products out on the market today, it is worth knowing which one works for your business in the long term. Still not sure Why Boutique Lenders are Your Friend? If you are a small business that finds itself struggling to acquire a loan from a traditional bank, check out the research on smaller- less institutionalized and bureaucratic- boutique lenders and see how this alternative may be able to help your business grow. Knowing what is out there today will get you where you need to be when you need it most.