Custom integrators, like every small business, need extra capital to keep the business running smoothly. With supply chains stressed, integrators now more than ever are being asked to tie up much-needed capital to order equipment earlier than ever.
According to JSV Capital, a Clark, N.J.-based company that specializes in helping find funding for small businesses, many small businesses turned to traditional banking for their funding during the pandemic, but the majority of owners “came to find that the path to fulfilling their financial needs can be rocky. In fact, roughly 80% of small business loan applications are rejected by banks.
For those lucky enough to get approved, the process from applying to the receival of funds can take anywhere from 60 to 90 days,” according to a blog on the company’s website.
“While bank loans have long been the go-to for businesses to obtain extra capital, the last few years have proven that lengthy applications, long approval times and high rejection rates are no longer cutting it. In turn, this shift has had a positive effect on the alternative lending market.
“The lending industry has risen in popularity for those who’ve been denied a bank loan, have a poor credit history, or are in need of immediate funding. In addition, they’ve also digitized the lending process, which is different from traditional banks which have notoriously fallen behind in terms of technological advancements,” says JSV.
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“When talking about all the types of small business funding options available today, there are certain factors that will ultimately determine which is right for you.
Do you know what the loan will be used for?How much funding will you need?Or the amount of time do you have to pay it back?
“At the end of the day, obtaining capital is an essential part of business ownership and for any company that’s trying to succeed. Since there are so many routes that exist to getting that desired funding, entrepreneurs are encouraged to do their research before jumping into the application process,” advises the firm.
To that end, JSV has compiled a list of nine methods of alternative funding with the pros and cons for each type (click on the image for full resolution):