Custom integrators, like all small businesses, need additional capital to keep the business running smoothly. With supply chains under strain, integrators are being urged more than ever to tie up much-needed capital to order equipment sooner than ever.
According to JSV Capital, a Clark, NJ-based company that specializes in helping small businesses find financing, many small businesses have turned to traditional banking for financing during the pandemic, but the majority of owners have discovered that the road to meeting their financial needs can be rocky. In fact, about 80% of small business loan applications are rejected by banks.
For those lucky enough to be approved, the process from applying to receiving funds can take 60 to 90 days,” according to a blog post on the company’s website.
“While bank loans have long been the go-to solution for businesses to obtain additional capital, the past few years have proven that long applications, long approval times and high rejection rates are no longer enough. In turn , this change had a positive effect on the alternative loan market.
“The credit industry has grown in popularity with those who have been refused a bank loan, have bad credit or need immediate financing. Furthermore, they have also digitized the lending process, which is different from traditional banks which have notoriously lagged behind in terms of technological advancements,” says JSV.
“When you talk about all the types of small business financing options available today, certain factors will ultimately determine which is best for you.
- Do you know what the loan will be used for?
- How much funding will you need?
- Or how long do you have to pay it back?
“Ultimately, obtaining capital is a critical part of business ownership and any business trying to succeed. As there are many avenues to obtain the desired funding, entrepreneurs are encouraged to do their research before embarking on the application process,” advises the company.
To this end, JSV has compiled a list of nine methods of alternative financing with the advantages and disadvantages of each type (click image for full resolution):