The total number of loans given to small business owners by traditional lenders has dramatically decreased by over 20% in the last decade. Conventional money lenders are increasingly avoiding the small business space, but that should not be a call for alarm. After all, why worry about weaving through a maze when you can go straight to the finish line? However, by partnering with a direct lender on your business, you eliminate the problem that comes from juggling banks and broker relationships. While it may not sound like excellent news that money lenders have left you with no source of funds, it does not necessarily mean that you cannot get a loan.
Many benefits follow when you decide to partner with a direct lender. The main advantage being the opportunity to work closely with the lender’s team of experts. As a result of building strong relationships, your lender will work with you hand-in-hand to ensure your business gets the best opportunities.
Here are just some of the benefits you will enjoy from working with a direct money lender:
1. You Stand a Better Chance of Getting Your Loan Approved
The main reason why traditional money lenders, like big banks, aren’t interested in small businesses is that the reward they will gain from them is not worth the risk, resulting in high loan rejection rates.
On the other hand, direct money lenders don’t think lowly of small businesses. Rather than seeing small businesses, they view them as clients that will one day become potentially large organizations that need loans from time to time in order to become successful. They are more than willing to see your business thrive and your business’s needs met.
2. You Will Get Better Terms on Your Loan
If you are lucky and manage to secure a loan with a traditional lender, there is a high chance that you will not get the best terms. Traditional lenders will burden you with high-interest rates and fees which are challenging for blooming businesses; lenders are often more oriented to growing their own businesses than yours, hence the high rates. They will try to tilt their terms in their favor in order to profit from your loan, which is not always the case with a direct money lender.
A direct money lender will be more accommodating and will have your business’s best interests at heart, giving you fair interest rates.
3. Direct Lenders Offer Flexibility
Unlike banks that are only interested in a perfect credit score and a strong business, direct money lenders look beyond the shallow scope of credit score alone.
Quality direct lenders will work closely with you to understand your business’s needs before recommending you a particular loan package. This means that you get the best loan with fair interest rates independent of your credit score.
As a small business owner, you might not have the privilege to wait for your loan to get to you while opportunities slip away. Often, you will need the loan to keep your business afloat, or to purchase an essential piece of equipment swiftly.
Traditional lenders will keep you waiting for weeks on end before they can process your loan and avail the funds. With a direct money lender, however, you fill in the application form online, and you are done with the application process in a matter of minutes. Within a few days, the loan is deposited into your account with almost zero paperwork.
5. Work One-on-One with Your Direct Lending Officer
While some banks might try to give you some one-on-one attention, it is very little compared to the personalized attention you will receive from a direct lender. Most banks treat a request as a business transaction rather than a chance to form a long-lasting mutually beneficial relationship with small business owners.
With a direct lender, you are partnered with a loan officer who will be solely appointed to deal with your needs and guide you accordingly. Furthermore, they will take their time to give you more creative solutions and loan packages that suit your business.
Your loan expert will be ready to help you if you:
- Have a question about the maximum amount of money you can borrow.
- Need repayment plans outlined and clearly explained to you.
- Aren’t sure how to apply for the loan or how to go about the loan process.
- Want to find about other services offered by the lender like business line credit and equipment financing.
- Don’t understand the language used in the loan agreement.
Partnering with RidgeStone Capital
It is always good to know that a direct lender has your back and is ready to help your business grow. At RidgeStone, we understand the challenges business owners face, and we are here to offer you competitive rates and flexible terms. Feel free to talk to one of our loan experts, and rest assured that you’ll receive a fast and hassle-free loan.