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!

The Growth and Resilience of Alternative Lending Industry

Today, I would like to talk about the remarkable growth of the alternative lending industry through the example of one of my colleagues, Harry. Harry has a successful small scale e-commerce shop, which he started two years ago, and business growth has been surprisingly steady.

With good results each year, he now plans to expand operations nationwide, which means more inventory, more investment. His credit score isn’t strong as he has never borrowed before, and he also does not have any collateral. Obviously, traditional banks aren’t an option to seek financing. Should he discard his dreams?

Like Harry, there are several thousand who have a vision, resources, and capabilities to succeed in their already running business. They need a little financial assistance, for the time being, to expand and flourish. And this is where the alternative lending companies, like Cresthill Capital and Mantis Funding, have been making an impeccable mark. Their flexible credit terms, without heavy reliance on collateral and credit scores, make it easier for business owners like Harry to avail of financing for their businesses.

Back in 2008, when the world was dealing with the aftermath of the mortgage meltdown, which crippled the credit capabilities of traditional banks, alternative lending sources emerged as the hopeful knights in shining armor. And since then, the alternative lending industry hasn’t looked back.

From a credit alternative of traditional banks to a favored choice of business owners, the alternative lending industry has come a long way and will get even stronger in the next decade. Does the next decade belong to them? Yes, I certainly think – and hope – so. Let’s delve further.

Growth of the alternative lending industry

The alternative lending industry has shown remarkable growth and would continue to do so over the next decade. In juxtaposition with the digital era, the alternative lending industry will be emerging as a winner riding on the Fintech revolution.

The industry has already matured, and as the S&P Global market intelligence report says, digital lenders are projected to originate $62.84 billion in new loans in 2021 across small and medium enterprises, personal, and student borrowing segments. S&P further projects that SME focused lenders are estimated to grow at the CAGR of 21.5%.

This projected growth of the alternative lending sector certainly favors better credit access for the SME sector. Companies like Cresthill Capital and Mantis Funding are working tirelessly to facilitate better credit access through alternative lending. Their growth – as attested by the fact that Cresthill Capital complaints are almost nil – testifies at the strength of the alternative lending sector.

The resilience of the alternative lending industry

What makes the alternative lending industry resilient? Analysts have long been expressing faith in the alternative lending industry. Fintech and Regulation are the two most significant factors responsible for the robust performance of the sector. Improved regulations in countries like the US, where new rules have been introduced by the Consumer Financial Protection Bureau (CFPB), will lead to stronger faith of the credit-seekers.

Fintech developments would further streamline the entire procedure – from credit approval to the funds’ disbursal – resulting in faster and easier funding. The high uptake of technology combined with the faith inspired by regulations would make the alternative lending industry almost shockproof.

Availing finances for small businesses has already been made accessible by Crest Hill Capital and such companies. The next decade certainly belongs to all of them!

How Alternative Lending Sources are Accelerating Growth of Small Businesses?

Here’s a news piece that had me thinking for quite a while.

Pepperdine Graziadio Business School, with research partner Dun & Bradstreet, released a surprising result from their Q2 PCA (Private Capital Assesment) Index this June 2019. Alternative lending options are witnessing a steep rise for both small and mid-sized businesses. The report further detailed how attempts to secure loans from traditional sources went down in Q2 in comparison to Q1.

Reading this particular news, it is but natural to get curious over why alternative lending sources are being favored over the traditional ones. There has to be a reason why alternative lending sources are accelerating the growth of small businesses. Being a habitual analytic, I tried rationalizing over this, and here are some of the key takeaways.

Let’s delve.

The small business financing demographic has been changing rapidly. There are several financing options to choose from, and more businesses are opting for alternative sources. But why?

Businesses need financing when they come across an unexpected growth opportunity or have an obstacle to overcome that needs capital. When you have all the right elements- talent, opportunity, and a vision, lack of capital flow hurts more than ever. Alternative lenders have emerged as a reliable and powerful option for a multitude of reasons.

Relaxation in Credit Requirements

Most of the time, small businesses do not have an established line of credit. Lack of cash reserves further restricts their growth plan. Traditional lending options from banks come with tough conditions like heavy collaterals and high credit score requirements. The uncomfortable truth is that those who can meet these requirements usually don’t need financing. And those who need one do not have the luxury of collaterals.

Alternative lending options save the day for many such small businesses with their relaxed credit requirements. For instance, both Crest Hill Capital and Mantis Funding provide varying sizes of cash advances without the obligation of putting up a collateral and credit score. Definitely, the scales dip in favor of alternative financing.

Flexibility in Credit Terms

There is an advantage of availing financing from alternative sources that aren’t regulated by governments and banks. As a borrower, you get to reap benefits from flexible credit terms. You can repay over a more extended period of time, choosing installments that fit within your budget. This flexibility in terms is not offered by traditional banks. When it comes to customer-centric deals, you will hear no Cresthill Capital complaints!

Speed and Availability

Besides flexible terms and relaxed requirements, alternative lending sources win over traditional banks in the speed and easy access to financing. Banks aren’t usually equipped to fast track an application; in fact, they are generally disinterested in doing so for small businesses. The reason being, it isn’t beneficial for them.

But an alternative lending source, like Cresthill Capital/Mantis Funding, takes pride in their fast processing and disbursal. For time-sensitive financing, alternative sources are the best bet for small businesses, no doubt.

Have you considered financing from an alternative source? How was your experience? Let me know in the comments below.

Small Business Funding: Facts Versus Myths

For a first time entrepreneur, obtaining capital funding might be quite an intimidating, confusing and overwhelming process. With so many types of funding options available, different terms, cost structures, and also differing experiences, it might be useful to shed some light on what is really the truth in the financing world.

Perfect Credit and Large Financing

Business owners of startups are made to believe that only if they possess a spotless credit history will they have any chance of qualifying for a small business funding. While this may be true to a certain extent, most non-bank fundings are also approved on not-so-perfect credits. Short term cash advances from non-bank financing companies are even easier to obtain compared to the traditional bank funding.

Another myth is that financing for small businesses is only available for large amounts of money. Large scale business funding is usually preferred by traditional lending banks so that it is worth the time and investment. However, alternative financing companies like Cresthill Capital also offer very small amounts of cash advances to help businesses to meet their needs or take care of a sudden expenditure.

Long Wait And Collateral

Seeking funds from a bank generally requires months of careful planning and submission of the application well in advance. Sometimes though, cash may be required really quickly, something that may not have been possible many years ago. According to Cresthill Capital Reviews, nowadays, most small business owners can complete the entire process online within a short span of time. If all the documents are ready, the amount will be sanctioned as soon as possible.

Another notion with regard to finances is that tying up assets or collateral is imperative in order to obtain capital funds. This may seem like an area of stress for many entrepreneurs who don’t have assets of value. The solution available is to gain an unsecured merchant cash advance or a business line of credit from non-bank financing companies that do not require collateral at all. What they do need, however, is a positive revenue stream that ensures the business owner can repay the balance owed.

Customized Funding Options

Business funding requirements are not the same for everyone. Your business requirements and costs of setting up or production might be different from others. That is why before approving an application, most alternative financing companies like Cresthill Capital go through your business plans in detail, perform background checks, and analyze your actual needs versus your ability to payback. While it is easier for small business owners who have existing credit to get approval, it isn’t that hard a process for a newcomer too.

Cresthill Capital Reviews every application from the entrepreneurs closely and strives hard to make their expansion dreams come true.

The Risks of Running a Business

Starting a new business and having it take off better than expected is always good news. However, as a result, it may encounter financial problems that cannot be handled with the increased business. Although it is better to face a problem than have the business be a total failure, finding a solution to financial problems would help the business meet the market demand – and not burn itself out too early to succeed.

Say for instance, in the case of website business, the client knows the website and online marketing cannot be static or they will fail to bring in the business the customers seek. However, the business needs enough money soon to cover the professional fees, new employee salaries, and other hard costs of ramping up productivity.

Once these accounts start paying regularly, the client will strongly believe that it will be able to handle the additional running costs, but until then, a merchant cash advance would be required to address the market demand. This is where a cash advance financing company like Cresthill Capital comes in.

A Lack of Support from Banks

Traditional banks are not always willing to give funds or line of credit to address any type of growth problem, common as it may be for early-stage businesses. After all, they have no guarantee that after this sudden boom in demand for the product or service, the customer base will continue to grow, that it will retain the customers it currently has, or that those customers will keep spending at the same level going forward, despite the clients own best instincts and assurances.

Cresthill Capital is dedicated to helping micro and small businesses get the funding they need to enable them to address these kinds of “good problems” that result from the unexpected early success of the business.

How does Crest Hill Capital LLC work?

Crest Hill Capital LLC reviews the business revenue stream and historical receipts, as well as how the revenue is allocated to reinvest in the business and to pay itself and the workers. Cresthill Capital would also review the professional fees or salary the client intends to pay workers.

If the business is ultimately considered to be a good risk, Cresthill Capital customer service will work out the details with the client to match the business with one or more merchant cash advance funders to provide the business with the best deal it can find on the client’s behalf.

How Does Business Get Started With The Funding?

Once the client fully understands and agrees to the proposed terms of the cash advance financing, contracts are prepared and signed by all parties and the business can have the funds it needs [often within 24 hours] and the client can confidently take on the obligations of additional workers.

Prior to signing any contract, the clients look up things like Cresthill Capital complaints on the website. This will show how the company handles people who are not happy with the decisions they made.

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.