According to today’s Wall Street Journal, there are nearly two dozen non-bank lenders who want to become the go-to financiers for business owners needing quick cash.  Former American Express chairman and chief executive James Robinson III stated, “It is a substantially underserved segment of the economy.”

We couldn’t agree more.  It is true that banks look primarily to credit scores and spend weeks poring over multitudes of financial documents, only to ultimately turn down 82% of small business borrowers.

Short-term non-traditional lenders are stepping in, offering a more streamlined and faster option, but this new financing comes at a cost.  Known as merchant cash advance providers, or MCA’s, these lenders require repayment over a period of months, rather than years, and collect payments from small business owners daily.  What these lenders don’t advertise is that the effective APR on such a product can range from 30% to more than 150%.

The typical customer for this alternative lending product is a restaurant, auto-body shop, beauty salon, retailer or physician.  Many of these owners have come to us, asking, “What gives?”

Is it possible to secure a financing product that is simpler than the arduous process of a bank but cheaper than the interest rates of an MCA?  The answer is simply YES!

We realize that there is a big gap to be filled between a bank loan and the short-term alternatives already being offered, and we are happy to provide financing to fill that gap.

Interested in learning more?  Let us know!