Four Alternative Lending Solutions That Meet Four Different Small Business Needs

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Each small business has its own unique financial needs and sieving through the plethora of alternative financial solutions can be daunting for entrepreneurs, particularly those who are starting up their venture.

Here are some of the alternative lending platforms listed to help businesses know which option suits them as per their specific business needs.

  1. Kabbage – Apt for Lines of Credit – Kabbage is a front runner in extending lines of credit to small businesses that require a loan in the range of $2,000 to $100,000. Businesses have six months to pay for every line of credit drawn and the lender charges fees in between 1% and 12%. Kabbage has an automated review system, which evaluates the data linked to a business’s bank account or online service to decide the eligibility for a loan.
  2. RapidAdvance – Quick in Merchant Cash Advance – RapidAdvance doles out cash advances in between 50% and 250% of a business’ monthly credit card sales. The loan can be paid off as a fixed percentage of future credit card sales till the time it is fully settled. Small businesses need to be at least three months old and should operate from a physical location and should have $2,500 in monthly credit card receivables. If the business meets the eligibility criteria, then loan approval could be processed within 24 hours.
  3. Accion – Loans to Start-ups – Accion prefers to extend funds to start-ups with a credit score of 575 and more. Businesses can receive loans starting from $10,000 to $100,000 if they maintain adequate cash flow and have proof of income. Interest rate of 10.99% is applicable on the loan amount, which is payable in monthly instalments.
  4. OnDeck – Loans to those with Bad score – Loans ranging from $5,000 and $250,000 are offered by OnDeck, which charges a fixed rate of interest. Businesses need to have a minimum credit score of 500 alongside an annual revenue of $100,000 to qualify for an OnDeck loan. The repayment tenure varies in between three to 24 months, and a flat rate of 15% is applicable on the loan amount.
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