Learn how to Talk to Clients About Alternative Financing

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If you want to know about alternative financing then below given articles offer the tools and knowledge to confidently discuss alternative financing options, as well as keep accountants informed of any savings available to pass on directly to clients.
Capital is a huge issue for small business owners, particularly when it comes to traditional sources of financing, but as you can best address their concerns and assist advise other methods of funding.

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Federal Reserve research finds that small business borrowers spend almost 25 hours on paperwork for bank loans and during their application process. If successful in the process, those business owners then wait weeks or in some cases a month to be approved and available for use.

The Roadblock for Small Businesses

There are numerous reasons for today’s low bank loan approval rates: lack of collateral, zero credit, weak cash flow, and risk-averse banks. Other difficulties arise when the business owner isn’t prepared. Applying for a bank loan doesn’t just occupy form-filling; businesses require a strong business plan, tax returns, projections and financial statements, personal credit reports and business and so on.

Another fundamental roadblock that small businesses face is their financial requirements to run the business smoothly. Most small businesses look for loans of less than $10,000. However, larger loans ascertain more beneficial to the bank. A bank sustains parallel transaction costs when processing a loan as they do with a $1 million loan, but with less profit. The small business is interested in meeting with their business financial needs; on the other hand the bank is primarily interested in earning their minimum return on their investment.

What About a Credit Card?

Credit cards are considered to be a famous short-term resolution for numerous small businesses; however, it doesn’t resolve all business-related requirements. Without hard cash, make rent, or oftentimes purchase inventory. Small businesses can’t solve the majority of their cash-flow requirements with a credit card. Moreover, in order to be eligible for a business credit card, a small business owner must have a good personal credit score, and the underwriting is focused on the business owner as an individual business’ health and financials.

Small Business Survival is at Stake

To add to this unfortunate dilemma, it’s hard to get away from the terrifying statistics, such as the fact that 50 percent of U.S. small businesses don’t live beyond their first five years, and only one-third survive 10 years or more. The only reason for failure is cash flow. If these small businesses are to make well-versed decisions and avoid the cash-flow issues that put so numerous of their peers out of business, they need your assistance.

If you have already faced inefficiencies associated with credit cards, what are the options? Now might be the time to talk to your client about alternative finance.

What is Alternative Financing?

In the past, alternative financing came in the form of lines of credit, credit cards, an equity investment, savings, and even friends and family. Today, however, the landscape has changed vividly.

In recent years, new online technology-enabled startups have come forward with the goal of making small business financing more manageable. Some of these services include Fundbox, Fundera, Prosper, Lendio, OnDeck, Quick Books Support, Financing, and LendingClub. Each has their exclusive value proposition, but the emphasis is always on transparency, convenience and speed. These resolutions comprise everything from short-term loans to lines of credit and even cash-flow-freeing invoice financing. you can also do query on toll free number +1865-407-2488