Alternative Business Loans
Alternative business loans have become increasingly popular with consumers and business owners alike as online financial services have become more prevalent over the past decade. If you’re a small business owner, you may wonder how alternative business lending compares to traditional bank lending. For many businesses, traditional loans may not be the ideal funding option — or may not be an option at all.
Interest RatesTypically lower
Interest RatesTypically higher
QualificationsStrict qualification criteria
QualificationsMore accessible with less-than-perfect credit
Funding SpeedCan take days, weeks or even months for financing to come through
Funding SpeedFunding is often available as soon as the next business day
Different Types of Alternative Business Loans
If a bank loan isn’t a viable option for your business, there are multiple kinds of alternative business loans you can turn to. The exact type of alternative loan can vary, but they all tend to have easy online applications, fast funding and greater likelihood of approval.
Line of Credit
A business line of credit is similar to a business credit card and gives your business constant access to working capital. You can draw funds, up to your available credit limit, whenever you need. As you pay down your balance, those funds become available to draw again.
Term Loans From Private Lenders
Term loans from private business lenders are similar in structure to traditional bank loans — the difference is that they’re coming from a private lender, usually online, and not a bank. A term loan gives you a lump sum of cash up front and typically has a set annual percentage rate and repayment term.
For companies that bill larger invoices and have to wait for payment from clients, invoice factoring is a way to receive the funds due before the client pays. A lender will, in effect, purchase those invoices for a fee and forward the capital to the company.
A peer-to-peer lender is an entity that will match your business with a private lender to meet your financial needs. Since P2P lending is only a service, the exact type of alternative business loan you apply for may vary. Examples include lines of credit, long-term loans, invoice factoring and merchant cash advances.
Alternative Business Loans from Headway Capital
Alternative business funding is a smart choice for any small business looking for working capital to cover everything from day-to-day costs to expansion. If you’re a small business owner looking for alternative business funding, Headway Capital may be able to help. Our true line of credit has all the hallmarks of alternative business financing: a quick application, fast funding (as soon as the next business day) and a higher likelihood of approval due to our eligibility determination method.
Business line of credit
12, 18 or 24 months
No Hidden Fees
See our Rates & Terms for details
Weekly or monthly
Clear payment terms, interest does not compound, no penalty for early payoff
1We will not perform a hard credit pull until after you have submitted the application and signed the contract.