The alternative lending industry has been making waves, and it is assumed that the coming decade of the 2020s would see a significant rise in the alternative lending-accelerated growth of medium and small enterprises. The existing gap in credit flow towards the business sector can be bridged with effecting alternative tools, such as commercial business loans, peer to peer lending, crowdfunding, and factoring.

1. BOTTLENECKS
OR STRAIGHT
UP MISCONCEPTIONS?

2. LEARN THE REAL TRUTH
ABOUT ALTERNATIVE
LENDING SECTOR

3. The alternative lending industry has been
making waves, and it is assumed that the coming
decade of the 2020s would see a significant rise
in the alternative lending-accelerated growth of
medium and small enterprises. The existing gap
in credit flow towards the business sector can be
bridged with effecting alternative tools, such as
commercial business loans, peer to peer lending,
crowdfunding, and factoring.

4. While the alternative lending sector is fast
emerging as the go-to option, yet there are
some misconceptions about it. Are they real
bottlenecks or just plain misconceptions?
Let’s find out.

5. Only desperate credit seekers look up to the
alternative lending sector
The biggest misconception that I have heard about the
alternative lending sector is that only desperate credit
seekers opt for it. This notion is not just wrong, it is
senseless. Banks turn down a credit-seeking application for
various reasons ranging from lack of appropriate collateral
to not-so-fantastic credit score. If alternative lending
companies gave loans to only the desperate ones with no
solid standing, they wouldn’t be operating till now. The
entire industry would have gone belly up a long time ago.

6. Lie any other business, alternative lending
companies also assess the risk logically and then
offer credit at an appropriate interest rate. After all,
which lender wants to see its borrower fail? None!
The success of reputed alternative lending
companies like Cresthill Capital And Mantis
Funding does refute the above misconception.

7. Your first credit-seeking option should always be a
bank
Or, as I hear many times, look up alternative
lending sources only after your application has
been rejected by banks. This, again, is a big
misconception. The truth, in fact, is that many
business owners find it much easier to avail of
financing from an alternative lending source as
compared to banks or credit unions.

8. There are no hassles like endless documentation,
unusual delays, there is less judgment and more
flexibility. The majority of alternative lenders
like Cresthill Capital and Mantis Funding do not
require credit scores or collateral. Seekers also get
cash advances of different sizes as per their
requirements. Besides, approval and disbursal are
faster. Any enterprise or business, looking to expand
its operations and grab an available opportunity in
time, would prefer a good alternative lending
source. Time is money

9. Alternative lending sources are unreliable, and
you could hurt your credit score
100% misconception! Alternative lending sources
are reliable, and while they don’t have stringent
lending regulations to follow, reputation matters
to companies in the business. One example is
Crest Hill Capital - in a digital era, where every bit
of information is available online, you will be
hard-pressed to find Crest Hill capital complaints.

10. The company has worked hard to maintain its
pristine reputation, and that wouldn't have been
possible if the business model was unreliable. Alt-
lenders aren't banks, which means they do not have
similar capital requirements, but they do need to
adhere to lending regulations of the government
strictly.
And no, seeking credit from an alternative lending
source IS NOT going to hurt your credit score. In fact,
if you repay the loan responsibly, you can actually
improve your credit score. Wonderful, isn’t it?

11. Alternative lending companies like Crest Hill and
Mantis are thriving because of their strong ethics,
flexibility, and ease of doing business. They bridge
the gap between the financing needs of small and
medium enterprises and smooth credit flow. Got
more doubts? Ask us in the comments below.