Alternative Lenders Charge Exorbitant Rates
In fact, alternative lending companies generally charge very competitive rates. If they charged outlandishly high interest or had unreasonable terms, these lenders would soon find that they had no borrowers and would go out of business. The truth is that alternative lending companies charge rates that are in line with the specialized financial services they offer. These interest rates may be slightly higher than rates advertised by traditional banks. The added cost is generally justified by the higher risk or additional services offered by your lender.
Alternative Lending Companies Are Unregulated
Alternative lenders are required to adhere to all applicable federal and state lending regulations, including those that require full disclosure of loan terms and the amount you will pay for your loan. Because alternative loans require contracts signed by both parties to the transaction, your loan will also be subject to contract law provisions and stipulations.
Alternative Loans Are Only for Businesses With Bad Credit
There are many reasons to consider an alternative loan rather than a traditional bank arrangement:
- Alternative loans can be approved much more quickly than traditional bank loans. This can be critically important when taking advantage of short-term opportunities in the marketplace.
- The funds received from alternative lenders are also disbursed more quickly, which can put cash in hand for your business when emergency expenses arise.
- Alternative lending companies can typically offer more flexible terms and may even be able to tailor your loan terms to the specific needs of your business.
Borrowing From an Alternative Lender Will Ruin Your Credit
Taking a loan from an alternative lending company will not ruin your credit unless you fail to meet your financial obligations. Paying your loan on time and as agreed, however, can improve your credit and can help set the stage for future financial success for your company. Because most alternative lenders do report to the major credit bureaus, you will typically see solid increases in your credit score if you handle these financial transactions responsibly. This can help you to manage your company’s financial matters much more easily in the future.
At ReProp Financial, we offer practical alternative lending options for both commercial and residential clients across the western half of the United States. Our team can provide long-term financing, bridge financing, and construction loans designed to suit the needs of our customers.
Call us today at 1-800-444-2948 or visit us online to submit your loan request.