CAPITAL CORP. SYDNEY

73 Ocean Street, New South Wales 2000, SYDNEY

Contact Person: Callum S Ansell
E: callum.aus@capital.com
P: (02) 8252 5319

WILD KEY CAPITAL

22 Guild Street, NW8 2UP,
LONDON

Contact Person: Matilda O Dunn
E: matilda.uk@capital.com
P: 070 8652 7276

LECHMERE CAPITAL

Genslerstraße 9, Berlin Schöneberg 10829, BERLIN

Contact Person: Thorsten S Kohl
E: thorsten.bl@capital.com
P: 030 62 91 92

When A Small Business Should Use An Alternative Loan

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So, when should a small business seek an alternative loan? The answer is, whenever they need capital and cannot secure it from a bank, friends, or family. Alternative loans are short term and expensive and therefore should only be considered as a last resort (especially if speed of funding isn’t a factor). If you are a retailer and knowingly have an opportunity to buy an inventory item at a largely reduced price that you know from experience can sell quickly but you must purchase it within a week or so….that is a great reason to use an alternative loan like an unsecured revenue based loan. In this instance, you will not affect your cash flow, you can buy the inventory and resell it an an ROI that far exceeds the cost of the money. What if you have a tax bill that is due? An alternative loan can get this paid off in one shot. Need a new location quickly? An alternative loan is a great option as well due to the speed of the money. That is what a small business owner needs to understand. He/she is paying for the ease of applying, much reduced document requirements, and the speed of the funding process. You will have a lending decision within 24 hours. You will receive your funding, if approved, in as little as a few days to 7 days. That is extremely fast. The rates are high for this “service.” Expect to pay a flat 15% to 48% for the money over terms as little as 3 months up to 18 months (6 months being the average).
Hopefully this gives some insight into the alternative lending arena and how it can help the small business owner.