Alternative Financing is Gaining Popularity

 In the following transcript from the podcast of The Great Big Small Business Show, we see that business cash advance through credit card factoring is gaining in popularity and reputability.   

A simple “swipe” of a customer’s credit card keeps your working capital advance up to date. Since the rate at which they collect the money is determined by a realistic evaluation of your company’s prior monthly credit card receipts, the collection process is both predictable and easy. Their unique credit scoring system provides a “customer-friendly” approach to qualification. When most lending institutions seek to “screen-out” potential applicants, we work hard to “screen-in” qualified business applicants. The response time is fast and approval can be done in just a few days.

This may be something worth checking out for your business if bank and traditional financing is unavailable to your business.

 They also alluded to (and recommended) people-to-people funding services like Prosper

The way Prosper works is intuitive to people who have used eBay. Instead of listing and bidding on items, people list and bid on loans using Prosper’s online auction platform.

People who want to lend set the minimum interest rate they are willing to earn and bid in increments of $50 to $25,000 on loan listings they select.

Borrowers create loan listings for up to $25,000 and set the maximum rate they are willing to pay a lender. Then the auction begins as people who lend bid down the interest rate. Once the auction ends, Prosper takes the bids with the lowest rates and combines them into one simple loan.

I always enjoy when other professionals in the world of financing recognize the benefits of what we do.

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