Regarding a recent article published in the NY Times ‘Can’t Get a Bank Loan? The Alternatives Are Expanding’ discussing the new opportunities for businesses with alternative lending, Author Amy Cortese outlines how new lending software and platforms have made obtaining financing much more efficient for borrowers.
After 2008 many businesses have struggled to grow and enhance their business due to all upgrades requiring a need for extra working capital. Without near to perfect financials many businesses are rejected by banks, for lack of collateral for their requested loan.
Not to mention, in the case of a growing business, most borrowers lack the time to manually shop loan terms and rates, making the process much more exhausting.
Luckily the industry has developed technology, such as BoeFly, that allows borrowers to be directly matched to a full array of lenders who would finance their requests. This results in better rates and terms for the borrower, whether it is a bank loan or the higher priced merchant cash advance or other asset based loan products.
Like BoeFly, lending platforms offer a direct connection between lenders, banks, and borrowers. This not only benefits borrowers who are fundable by providing healthy competition in the lender market, but decreases costs for the lender which can accrete to the borrower in the form of lower rates and fees.
The digital innovation in the commercial financing world has enabled lending institutions to screen borrowers more efficiently while also guiding direct borrowers to lenders that are willing to fund the needed capital.