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What Is Alternative Funding Group?

Alternative Funding Group was established in 2016 and soon ventured into the merchant cash advance business with the objective of helping small businesses easily get the small amounts of credit they require, in a quick time. As the company began growing, they found partners in the form of different other funding companies whose offers suited their style of extending credit to small businesses. With time, the company realized that most small businesses mainly needed working capital funding at different points in time. Accordingly, they made adjustments to their style of extending short-term credit and made it easier for their clients to acquire funds for their working capital and other needs.

Small businesses have unique needs 

Most small businesses are on a fast growth track and run on a tight budget as they keep investing the bulk of their profits back in the business. This is because they want to achieve faster than normal growth to be able to reach a particular level where they can focus on adding value to their brand. That is easier said than done because they run out of cash before most of their plans are implemented. In this situation, where their profitability is badly diluted, they will need fast approvals for small business funding on easy terms. 

Unsecured funds for short term lending 

Alternative funding companies have consciously oriented their lending processes to meet the needs of small businesses. Since small businesses require small amounts of short funding mostly to meet working capital requirements, these funding agencies offer them unsecured funds. That means they neither ask for collaterals nor do they consider the credit score of the borrower. Traditional sources of funding like banks and other major financial institutions are unlikely to provide unsecured funding to small businesses. Such lenders are not oriented to help in the growth of small businesses and hence, they do not have any solutions for them. 

The small businesses are a vital part of our economy

According to the US Small Business Administration, over 44% of the country's economic activity is generated by small businesses. In terms of employment generation, the impact of small businesses is even larger - two-thirds or over 66%. Needless to say that without small businesses doing well, the country cannot expect to do well. In fact, the national economy will be in serious trouble if small businesses fail. Hence, in the absence of any worthwhile business funding environment for small businesses, if alternative funding agencies are filling in the gap, it is to be appreciated. 

Lending to small businesses poses much less risk than lending to big corporations whose capacity to absorb funds is like an endless pit but their debt servicing leave behind a lot of questions. That does not mean mega projects should not be funded but the funding needs of small businesses must not be overlooked in the bargain. That is where companies like Alternative Funding Group come in to make the difference. In fact, this company has already disbursed over 200 million dollars to small businesses and others in over 5 years that it has been in operation. It requires special skills to extend unsecured credit and assess the borrower’s ability to return the money with interest on time.

dikshasharma
dikshasharmahttps://www.ecogreenpark.co.id
I am a professional blogger | SEO Expert | And Developer
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