In the 21st century money is tighter than ever and businesses find it very hard to get business loans when they need them the most. Every business owner will be well acquainted with the fact that every company goes through a rough time during its initial phases. However, due to varied reasons they are unable to get a loan from banks and even if they do the process takes a lot longer than what is expected. Amidst such scenarios multiple alternative lending options have developed rapidly. A Non Banking Financial Company is a product of such situations and people have started choosing it over conventional banking nowadays.
So what exactly is a NBFC?
An NBFC is a financial institution that replaces a bank’s functionalities by offering surplus resources to individuals or businesses that are in a fix. The highlight about their services is that they are customer centric; the services can be customized in order to fulfill the customer’s individualistic requirements.
Now that you know the concept of NBFCs you might also like to get to know the benefits of opting for them over banks, the top 4 are listed as below:
Fast Access to Funds
When your company needs funds for daily operations, payroll, or accounts payable, you rarely have the time required to go through the borrowing process of traditional banks. Even when you meet the strict criteria laid out by financial institutions and regulatory bodies, it could take weeks or months to receive funds.
Quick and Easy Application Process
Accounts receivable financing eases the financial stress by letting you convert your outstanding account receivables into working capital. You get the funds you need in days instead of weeks or months which is typical of banks.
Secure Financing Even After Bank Rejection
If you’ve approached your bank and they turned you down, don’t despair. By some estimates, banks turn down as many as 80 percent of business loan applications they receive. Here are a few things that can prevent you from getting a bank loan.
- You need a particular amount that does match the bank’s minimum amount.
- Yours is an amateur startup.
- Your credit score is low.
Large loans cost a bank the same as small loans, so banks focus on large loans, rather than small ones. If your business is less than 2-years old, or if you credit score is below 640, you are considered a credit risk.
Because Allied Financial is not required to follow rigid banking guidelines, we pick and choose how much to loan and to whom. We base our decisions more on merit and need, rather than “checking off” the right boxes.
A Close Financial Relationship
Allied Financial works closely with each borrower to build a foundation strong enough to help them grow and to help them through the challenging times. Call us today. Let’s talk about what you need and how we can help your business.