How To Get Business Funding From An Alternative Lender

After years as a business owner, I can attest to one fundamental reality of every business; companies ALWAYS require money to operate and to grow. And no matter how profitable you are today, there could always come a time when a liquidity crunch will make you look outward for funding.

For small business owners, like me, finding money to fuel business growth (or even just to keep ticking through a lean period) was a constant challenge. It always seemed to me that the banks just made it too hard to get funding!

The paperwork, the wait, and, most critically, the uncertainty of approval made me lose many opportunities over the years. Thankfully, alternative financing institutions have now become a part of the mainstream funding sector – making it easier for small business owners, like me, to inject money into our businesses.

Over the years, I have taken three financing deals from alternative lenders (Cresthill Capitals/Mantis Funding), and this is what I recommend for business owners approaching alt-lenders for the first time –

1.Understand your requirements

In my opinion, the first and most crucial step is to analyze your business need. How much do you need, for what and for how long, and, most importantly, what can you afford? These are important questions you need to consider before you approach any alt-lender.

Once you have a basic idea of your needs, it is important to detail it out. Put down a timeline with specific goals for month or quarter – for example, if you are planning to take a financing offer to update your business premises, then you should have fixed price quotes from the builder, with a timeline and all the costs involved. You should also have a projection of how your revenue will pick up after the changes.

2.Research the alt-lending marketplace

The alternative financing sector is pretty diverse and vast – and spending time researching the various companies will certainly ensure you get the best deal possible.

Along with the lender and their specific deals, you must also weigh the different lending options. Most alt-lenders, such as Cresthill Capitals/Mantis Funding, offer merchant cash advances, business lines of credit, equipment financing, or working capital funding. Each comes with different rates and timelines.

You must match your needs to the right financing type. For example, my first funding offer from Cresthill Capital was a merchant cash advance for $10,000, which I used to stock up on seasonal inventory. The money was paid in a lump sum, and repayments were made as a percentage of daily sales.

3.Apply online and keep documentation ready

Once you have found the right deals, it is time to fill up the application. For a first-timer, it makes sense to apply to 2-3 different lenders. Once you apply, someone from the company’s team will get back to you for more information and to negotiate terms. Comparing a couple of offers can give you some leverage here.
The first time, I also kept my options open. But I had absolutely no Cresthill Capital complaints, so the next time I just went back to them as I was pretty sure they would give me the most competitive rates.

4.Negotiate

One of the things I like best about alt-lenders is the extreme flexibility they offer. The terms are not written in stone, and there is always room to get a better deal. So my final piece of advice is to negotiate a bit, as you will certainly shave off a bit from your total cost.

I hope this article makes your first time financing process a bit easier! One final piece of advice – take time and explore different options. For this start talking to various alt-lending institutions soon, don’t wait for a cash crunch to hit your business!

Business-Friendly Funding

Traditional financial institutions don’t lend easily which is why a financial business that is willing to offer all the financial support to help build a business is important. In order to maintain the business and expand as well as capitalize on any opportunities that will help to gain good profit, steady cash flow is necessary.

Banks and other lenders offer credit only after they assess the creditworthiness of the business. This is concluded based on some criteria that are quite primitive. Lenders like Crest Hill Capital LLC do not depend on two-dimensional credit scores to offer necessary funds. They make sure that every applicant that is qualified to be given funds can access the capital without any delay.

Banks v Non-Bank Financial Institutions

Banks and other non-bank financial businesses offer funds to businesses, but unlike banks, non-banking financial companies are willing to offer funds to all kinds of businesses except start-ups. Banks need to be registered while others do not need to be.

The application process is rather simple and quick and this means that clients of Cresthill Capital have lesser complaints than big banks. The rates are competitive and the funds are offered as quickly as possible which helps in the smooth flow of the business.

A Strict Policy on Purpose of Funds

The only restriction Cresthill capital places on the use of approved cash advance are that the money must be used for business purposes. Merchant cash advances are not personal funds, so business owners cannot approach a fast cash lender in the hopes of obtaining funding for private projects.

However, Crest Hill capital LLC does not ask for details regarding why applicants are requesting financing, so the funds may be used for anything pertaining to business, including purchasing or repairing essential equipment, bridging cash flow gaps, covering payroll, stocking up on inventory before a busy sales season or taking advantage of limited-time growth opportunities.

These are the typical uses for a merchant cash advance, although the short terms and high rates imposed by Crest Hill Capital LLC suggest that its financing should be reserved for emergencies or pursued by companies that have exhausted other funding options.

Customer-Friendly Procedures

It is important to always take a company’s reputation into consideration before choosing to apply for a cash advance. Even though this company has a Cresthill capital complaints department, some of the major reasons Cresthill Capital has no complaints from their clients maybe because they approve requests of funds much faster than any other institution.

They do not charge anything for the application. They have very flexible terms and competitive offers. They give the client business funds based on the need of their cash flow. It is possible for the clients to go online and apply for any of their respective funding needs. The whole process of application is very simple and in no way complicated.

Also throughout the process, the assistance of Cresthill capital customer service can be availed by the clients at all times if necessary.

Differences between Bank Funds and Merchant Cash Advance for Small Business Funding Needs

Your small business is going well and revenues are coming in steadily every month. You need additional financing to cover unexpected expenses or to invest in business development. You’re considering two borrowing options – a bank and a merchant cash advance from Cresthill Capital. Which should you choose? Here are some tips to help you make a well-informed decision.

How Banks Provide Funds
Banks have traditionally been the go-to service providers for business funds. This was before alternate funding options such as merchant cash advance disrupted the market in the 1990s. Today many companies, including Crest Hill Capital LLC, offer merchant cash advance to businesses in need. The problem with the traditional banks is that they are harder to come by.

Small businesses have to contend with the stringent qualifying standards of banks. For example, banks are not inclined to lend to business owners with a poor credit score. Most likely, you will have to put up some form of collateral.

How Merchant Cash Advances Work
These challenges are eliminated with merchant cash advance products. MCA lenders do not take into consideration a business owner’s credit score nor do they ask for collateral. A merchant cash advance is tied to future revenue. Cresthill Capital reviews an applicant’s past and current sales records as well as past revenue and current revenue inflows to evaluate creditworthiness.

It then matches a client with an appropriate funding source and makes a proposal. In the merchant cash advance model, a lump sum advance is provided. In exchange, you sell a portion of your future sales. If you have a poor credit score, a merchant cash advance may make better sense.

Differences in Time Required for Fund Disbursal
As a relatively new alternate funding option, a merchant cash advance is not subject to rigorous scrutiny. Getting approval from a bank can take months and that too, after submitting a huge volume of supporting documents.

Cresthill advisors only ask for basic business information and business document that prove your business is in sound health and you have the capacity to repay via future receivables. The approval process is simple and fast and you can have the advance amount in your business bank amount within days if required. This is a good solution when you need working capital funds urgently.

Differences in Structuring of Repayment
The structure of repayment is different for banks and merchant cash advance. In the bank model, you typically repay via fixed installments every month. The terms are more flexible with a merchant cash advance. You only pay an agreed-upon percentage of future sales.

If you’re having a lean season with less revenue coming in, the repayment amount goes down and if you’re having a good season with more revenue coming in, the repayment amount increases. The percentage does not change but the actual amount to be repaid can change. This may be a good option if you’re running a seasonal business.

To make the right decision, take into account important factors such as your business goals, business revenue flow, credit score, and risk-taking abilities!

Keep Your Small Business Running and Growing with Merchant Cash Advance Solutions

Cresthill Capital is an organization that specializes in helping small businesses working capital or growth funding quickly on the basis of the unique merchant cash advance payment system. Here are some reasons you may want to apply for working capital funding.

How Merchant Cash Advance Works
A merchant cash advance is different from a business fund obtained from a bank. Banks and other traditional money lenders may not consider your small business funding if you have a sub-par credit score. Moreover, their approval process is time-consuming. This is not the ideal situation when you have a sub-par credit score or you need working capital funding quickly.

In the merchant cash advance model, lenders give more weight to past and present revenues coming in from sales. Moreover, they provide lump-sum funding that is directly credited to your business bank account. In return, you commit to paying a portion of future receivables till the entire advance amount and applicable fees are cleared.

Which Businesses Can Apply?
Cresthill Capital matches small business owners with appropriate funding sources and makes an offer for proposed financing. Clients need to furnish proof of consistent past and current business revenue to qualify. Almost any small business such as a liquor store, retail store, medical store, night club, food truck, an automotive company, etc. can take advantage of the merchant cash advance funding system for operational or growth reasons.

Purchase More Inventory
Even profitable small businesses sometimes struggle to have enough inventory in stock due to a lack of working capital. This can be frustrating in peak season such as the period before Christmas. If you own an independent retail store or a toy store, you may consider a merchant cash advance to buy more inventory and have plenty in stock for customers during peak season.

Invest in Business Development Activities
As a retail store owner, you may be interested in purchasing a new POS system to increase operational efficiencies. You may want additional funds to spend on an advertising blitz. You may have plans for opening a new branch at a different location.

Imagine how disappointing it would be if you lost out on renting a strategic location because the bank was taking too long to process your funding request. In all these situations, a merchant cash advance can be a simple, convenient and attractive funding option.

Cover Expenses in Lean Season
Sometimes, you may need working capital just to keep your business running. Some businesses are seasonal in nature – for example, a pool supply store or a landscaping company. However, they have to cover basic costs such as payroll or rent during the off-season. A merchant cash advance is a great solution because it comes with flexible terms.

You can usually pay less during lean season and pay more when you have strong revenues coming in. It’s best to check the agreement terms because all lenders do not offer the same terms. You may also want to check online Cresthill Capital reviews and customer feedback before deciding to commit.

For simple, fast and competitive working capital funding solutions, get in touch with Cresthill Capital advisors now!