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Opening a franchise comes with upfront and ongoing costs, including initial fees, royalties, and other operational expenses. Discover six ways to secure a business loan, including SBA 7(a) loans, SBA 504 loans, franchisor financing assistance, crowdfunding, and traditional loans.<br>
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What is an alternative business loan? An alternative business loan is any non bank type of small business financing that isn’t through a traditional lender (banks, credit unions, SBA, or other conventional financial institutions). Alternative loan providers function similarly to traditional lending institutions, except they don't have the rigid requirements banks have.
Why an alternative lender? Many traditional lenders have become opposed to taking on risk, prompting them to approve only applicants with excellent credit or a great deal of collateral. But even when a small business owner is able to secure funding through a traditional lender, they have to wait for months to close the deal.
What are the pros and cons of alternative loans for a business?
Is an alternative business loan right for your business? There is no simple answer as to whether alternative funding makes sense for you and your business. Your need for funding will be unique each time it becomes necessary, as is your business’s circumstances. But sometimes, it’s a no-brainer that getting your business loan with an alternative lender is a logical next step, such as in the following situations.
