Newsletter
Each Alternative Lender is Different
Alternative lenders have the flexibility to offer a range of interest rates, shorter loan terms, unique lending products, and smaller loans than conventional funders. This is possible because alternative lenders exist outside traditional lending institutions such as banks, credit unions, and venture capitalists. Alternative financing can include online lending, factoring, crowdfunding, peer-to-peer, and private loans.
Just as alternative lenders differ from conventional lenders, they also differ from each other in the way they evaluate collateral, negotiate terms, and more. Alternative lenders offer a range of flexible business financing, including direct and micro-loans, lines of credit, merchant cash advances, as well as invoice and equipment financing. They can tailor funding to a borrower’s needs and are better suited for businesses with thin credit—such as start-ups—or low credit scores because they focus more on your business and market conditions than a credit score to more precisely calculate lending risk. Alternative funders also offer fast closure times, whereas conventional lenders can take weeks or even months to approve loans.
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Conventional lenders usually have pre-set terms and loan amounts, require a minimum credit score for approval, and are often better suited to larger, established businesses. Venture capitalists often want some degree of ownership or control of a company in return for financing. The assessment criteria used by conventional lenders may not give an accurate picture of a company’s ability to successfully repay a loan and can overlook businesses that are financially healthy while still having low credit scores.
ThermoCredit is an alternative lender with over 20 years of experience creating customized finance packages in the communications and technology sector. Our founders and leadership team come from the telecom and IT space, so they have a unique understanding of the challenges your company faces every day. We have loaned more than $1,000,000,000 to hundreds of companies since 2002.
With ThermoCredit, our main strength lies in building long-term relationships with clients. We don’t just assist with financing—we also provide business expertise. We help smaller companies develop business plans and growth strategies. We can help you expand through mergers and acquisitions, all without taking an ownership role in the company.
We know each company has its own unique roadmap to success and providing financing is just part of getting there.
ThermoCredit can help find the right funding alternatives for your business. Call us at 504-975-8599 or email us at Seth@ThermoCredit.com to schedule your free consultation today.
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Sources:
Bankrate: Alternative lending for small business: https://bit.ly/3OTb9CS
Biz2Credit: Small business lending: https://bit.ly/43hXmdf
IOUFinancial: 5 common misperceptions about alternative lending: https://bit.ly/3qdqJ1N
Leadsquared: Alternative lending in 2023: https://bit.ly/3Nb0y4M
Broker vs. Direct Lending: Which is Better for Your Company?
When it comes to sourcing commercial lending, a business owner has two options. They can deal directly with a lender or use a broker. A lender would be a bank or a financial services company working directly with the client. A broker acts as a matchmaker, looking for the best lender for their client and helping facilitate the loan or financing, not unlike a realtor showing properties to purchasers or an insurance agent representing multiple companies. A broker helps sort through all the options to best meet your needs.
If your business has previously qualified for lending, is well established, or already has a good relationship with a lender, you may prefer to leverage that relationship. This can be a good option if you know exactly the type and amount of financing you need, having already built a funding partnership.
However, if you’re a new borrower or a new business owner, going directly to a lender involves a lot of research to find the right one. You’ll also have to spend time filling out documents for each lender and preparing or updating your business plan. If the lenders you’ve chosen don’t have the financing options you need or have strict approval requirements for which you may not qualify—including good credit history or business references—you’ve lost a lot of time and effort, both of which you could have spent running your company.
A business broker can save you time, effort, and money. An experienced broker has a wide network of lenders they can access. You only need to fill out paperwork once and the broker will approach potential lenders on your behalf. A broker should already have an idea of which lenders are a good match and can often negotiate higher loan amounts and better terms for your business than you could on your own, saving you money. A broker normally only charges a fee if they’re successful in finding funding. This fee may be paid by the lender or is often included in the loan.
A good broker should be willing to answer questions upfront about the range of lenders they work with, which lenders they will submit your application to, and the amount of their fees—and who pays. Once a broker finds a lender who’s a good match for your business, the broker will explain the terms, and loan repayment options, and can help to close the deal.
With over 20 years of experience, ThermoCredit has provided financing for hundreds of companies in the technology and communications sectors, sourcing over $1B in funding for our clients. Contact ThermoCredit about business financing for your company. Call us at 504-975-8599 or email us at Seth@ThermoCredit.com to schedule your free consultation today.
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Sources:
Fleximize: Commercial finance broker vs direct business loan: https://bit.ly/3qEG7Vl
Forbes: Should you hire a business loan broker?: https://bit.ly/3qAqoqe
Loanry: Should I use a business loan broker or a direct lender? https://bit.ly/3P7s6cY
My Cashline: Business loan brokers vs direct lenders: https://bit.ly/3NobMDj
Nav: Business loan brokers vs direct lenders: https://bit.ly/3qCl6KQ
Documentation You Need to Start the Loan Process
Most traditional lenders ask a business owner to provide a long list of documents when they apply for a business loan. Lenders’ requirements may vary but usually include: business tax forms, an updated business plan, bank statements, copies of a business license and registration, business financial statements, a business credit report, budget/cash flow statements, and more going back years.
Many lenders will evaluate a business owner’s personal finances, including personal credit scores to determine the company’s creditworthiness. The lender may even require an owner to personally guarantee the business loan or have a spouse co-sign.
At ThermoCredit, we are more focused on where your company is going than where it’s been. Your ability to borrow from us and our hundreds of lending partners is determined by your business plan. We evaluate your current finances, assets, and growth plans to help find the right lending package to help you achieve your goals. We generally require less paperwork, have a higher approval rate, and have working capital in your accounts in far faster than banks. Working with ThermoCredit and our expedited approval process, you can have your money in a few weeks, as opposed to months with a bank. Most importantly, ThermoCredit can fund 100% of your loan.
We can do all of this because the focus is on building a personal relationship. The majority of our clients rely on ThermoCredit as not only a lender, but a trusted business advisor brought in to help with M & A, expansions, and much more. ThermoCredit has loaned over a billion dollars to hundreds of companies since 2002. We have the experience to help you navigate the best path to success so you can focus on what’s important: running your business.
ThermoCredit has been helping companies in the technology and communications sectors find funding for over 20 years. We offer a variety of flexible lending options, including factoring, AR loans, and more. We provide the capital, and you keep control of your company. Call us at 504-975-8599 or email us at Seth@ThermoCredit.com to schedule a free consultation today.
Sources:
Bankrate: What Documents are Required for a Business Loan?: https://bit.ly/3NqunyG
Score: The Documents You Need When Applying for a Loan: https://bit.ly/3p2fb1i
Small Business Trends: 14 Small Business Loan Documents You’ll Need: https://bit.ly/46fFzFR
Thermocredit: Why Thermocredit: https://bit.ly/3N8ccMz
Funding Strategies Conference presents
Smart Strategies for Working Capital Under Stress
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Thursday, July 20, 2023
2-3 PM ET $29.99
Being Aware of How to Leverage Debt and Equity Can be a Real Asset to Your Business.
Tune in for tips and strategies to help evaluate what kind of financing would best fit your business.
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As a sponsor of the Funding Strategies Conference, we would like to invite you to be our guest at the online webinar.
Normally $29.999, you can join for FREE using the promo code CAPITAL23. Offer expires 7/10/2023.
