Why would a borrower with good credit come to an alternative lender for funds? The answers are many, but boil down to making the best decision for their business.
The bureaucracy at traditional banks has forced many business owners to acquire funding in the private market. This increase in demand for private money has led to the development of a financial product commonly called bad credit business loans.
When you hear the term “bad credit,” you might think that these are bad loans, or that there is something wrong with the borrower that they need to apply for a bad credit business loan. This is not the case. In the lending industry, “bad credit” simply refers to a credit history or background that does not meet the lending requirements of banks.
Under the umbrella term bad credit business loans, borrowers will find a wide variety of financial loans to meet their needs. These include, but are not limited to; working capital loans, unsecured business loans, merchant or business cash advances, small business loans for women, restaurant loans, a business line of credit, and more.
So what are the reasons that a borrower with good credit would seek out a bad credit business loan?