What to Look for in Small Business Financing

For small businesses, applying for traditional bank loans and securing financing can sometimes feel like impossible tasks. But non-traditional lenders can hold the keys you need to expand your business and fully care for all of your financing needs.

There are many reasons why financial experts are concerned about the state of small businesses in the United States. The reality is that the death of the American small business has been largely overstated, as almost half of the jobs within the United States stem from small businesses. The long-standing success of a small business is as important as ever, and a post-pandemic payments landscape enables businesses to thrive with more financial options widely available to them than ever before.

But a rising tide doesn’t always lift all boats. While opportunities for businesses have expanded and the ability to reach new customers is at an all-time high, some everyday factors remain in place that limit small businesses and their ability to grow.

For small businesses, applying for traditional bank loans and attempting to secure financing can still feel like impossible tasks. Indeed, the process of getting a traditional bank loan for your small business has become increasingly complicated and equally as frustrating, even as the landscape of payments continues to evolve. Banks require a rigorous application process: mounds of paperwork that can take months to get you the funds you need. Many small businesses are unable to qualify for traditional bank loans at all.

Small businesses are confronting financing challenges from traditional outlets that are proving to be notably difficult to navigate in a very competitive marketplace. But as a small business, non-traditional lenders can hold the keys you need to overcome these challenges and expand your business by fully caring for all of your financing needs.

Let’s break down how:

The Challenges

Securing fast and efficient processing is as tricky for small businesses as ever. Four in every five small businesses that apply for any type of loan are denied financing. When observing the financing process from a traditional perspective, the statistics paint a system that is not tenable for small businesses, and quite simply not practical. The modern business landscape empowers merchants to pursue business ventures, but the logistical hurdles that come with financing those ventures can be difficult to interrogate.

Small businesses need to be put in a position to succeed. Given the shift in how businesses operate in a post-pandemic world, smaller businesses are not afforded the luxury of long delay times and logistical hurdles when applying for financing. Simply put, businesses may not have the time or the resources to compete in a marketplace that is in constant motion. Convenience and quick turnaround times become invaluable tools for businesses with these finite resources, and payment providers that can aid them in their acquisition of them will come in high demand.

The importance of flexibility and timeliness increase tenfold when taking financing into account. Traditional financing companies do not necessarily operate with the best interests of smaller businesses in mind. Additionally, even with smaller transactions and financing needs, small businesses go through the same strenuous process of applying for loans and financing for transactions that large businesses do but significantly less money involved.

Traditional vs. Non-traditional Lenders

Traditional funders are selective with how they choose to operate. Securing a timely loan from a traditional funder like a large bank is highly improbable for a small business that needs an efficient and timely financing option. The process can be so frustrating that many small businesses don’t even bother to apply (traditional bank loans harbor requirements that businesses cannot realistically meet or qualify for).

Non-traditional lenders can bridge that gap and meet small businesses where they are at. The uniquely complicated business practices that traditional lenders favor can make it seem like a simple financing option is always an arm’s length away for small businesses that are searching for options. But thanks to advancing technology at their disposal, non-traditional lenders can cut out the complicated processes and time-consuming steps that come directly when dealing with traditional lenders. New financing tools allow non-traditional lenders to make solid credit decisions with less documentation, resulting in a much faster application and approval process. 

Simplicity and flexibility go a long way in securing financing and payment processing. The ease and quickness with which a non-traditional lender can offer short-term financing can mean the difference between success and failure for small businesses. As a merchant, any hold-ups or short-cuts in financing can severely hinder your business, regardless of whatever stage it is in. This places the onus on small businesses to not only seek out a payment processing solution that can manage scale and unassailably handle growth, but also push for a financing service that is committed to helping small businesses get the resources they need to succeed.

Short-term loans and financing options from non-traditional lenders offer businesses the opportunity to service their own consumers at their convenience. Ultimately, small businesses that decide to work with a more flexible partner should feel ready for the future landscape of payments while simultaneously knowing that their financing is secure and ready for growth.

Navigate Challenges with Superior Options

If you own a small business and want to get fast funding and hassle-free payment processing to ensure your business is successful, you should feel at ease knowing there are smart solutions at your disposal.

Non-traditional lenders offer less paperwork and quick turnaround times that can mean a significant difference in how your business operates. Through a properly seamless and streamlined funding process, some lenders can get the funding to power small businesses in less than 48 hours. This flexibility and agility is exactly why AFS and Rapid Finance have partnered to assist small businesses to secure the financing they need in an efficient and timely manner.

With a simple application, fast process, and dedicated help, getting funds for your business with Rapid Finance and utilizing AFS to manage and secure payments puts your business in a prime position to excel in the modern payments marketplace.

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