How Alt Lending Has Proved To Be A Game-Changer For SMEs?

The Small and Medium Scale enterprise sector is today the pivot of a booming economy, especially in a rapidly developing economy, like ours in the U.S, with a diverse population base, having a distinct set of needs.

Alternative financing is fast becoming the fulcrum in such a financial scenario, generating a transaction value of UD$33,513.5m in the year 2020 and slated to reflect an annual growth rate of 0.9% (CAGR 2020-2023), resulting in a grand total of US$34,399.9m by 2023.

Talking in terms of the U.S Alt Finance sector exclusively, Alt finance grossed a sum total of $34.5 billion in origination volumes in 2016, which marked an average of 22% jump year-over-year.

Why Traditional Banking Sector fell short of expectations?
One of the strongest deterrents to the growth and expansion of the Small and Medium Scale Enterprises in the last few years of global expansion has been the lack of easy and quick access to traditional funding by the Banks. Both the Government and the Private banking sectors, were slow in their uptake to take advantage of this boom, which led to huge capital access gaps.

Limited collaterals, smaller asset size, and insufficient past financial record are few of the apparent factors cited by the traditional Banks, which had led to the SME sector become a less promising client base.

How Alt-Finance changed the game?
This is where Alt lending has stepped in and proved to be a game-changer of sorts in over-hauling and imparting fresh impetus to the SME sector. A not so distant, but maverick cousin of the conventional financial system, this technology driver, uber savvy, fast and easy method of financing has given SME sector in the U.S, the much-needed wind beneath their wings.

Alternative finance today refers to the entire gamut of financial channels, networks, and instruments that have mushroomed at an unprecedented rate in the last few years on the remote fringes of the traditional financial system. The sector is formulated with the specific objective to meet the needs of the “eager to aim bigger and fly higher” small and medium scale entrepreneur, who traditionally fall into the high-risk zone.

With the ease of availability of customized working capital loans and easy repayment options, small businesses never had a better financial ally.

Alternative lenders like Cresthill Capital in the U.S have revamped the entire SME sector with ease of Cash Advance facility, without correlation to past track records of the creditworthiness or collateral security. The facility of flexible cost structure allows for a range of convenient repayment options, which is easy on the pocket and business-friendly in its approach. Easy accessibility to Crest Hill complaints about detailed information and feedback, lends clarity and transparency to the entire process.

The expeditious processing time (as less as 4 hours to maximum 3 business days) and the absence of lengthy and cumbersome documentation makes Alternative lenders, like Cresthill Capital today, the first and most obvious choice for budding entrepreneurs and innovators who wish to accelerate the process of growth and expansion of their business. Additionally, the easy access Crest Hill complaints section helps in further streamlining the entire process.

How has Alt Finance actually revamped the dynamics of the SME sector?
Small scale sector entrepreneurs struggle to access capital to thrive and grow. Alt Finance has come to the aid of many businesses based on their fiscal responsibility assessment more than their credit ratings. Determination of the growth potential of start-ups and the level of competition they bring to the business, along with the necessary skill guidance boost from experienced investor groups, are some of the key highlights of this alternative financing sector.

It is then no surprise that where big Banks have been responsible for allowing funding of only 27.3% of all small business requests in 2019, Alt finance has approved the lion’s share at a whopping 51.3% of SMB loan application requests.

So, if you require that extra dough to meet expense during payroll times or are facing a cash crunch to meet urgent tax requirements or need some cash in hand to override a lean business phase or looking to over-reach your business range and exposure, we, at CrestHill Capital offer you a range of cash advance options at an enviable rate of interest. You are our priority since we firmly believe that one of the critical elements of a growing economy is financial inclusion.

Why Opting For Alternative Funding Over Traditional Is A Wise Decision?

The last decade has witnessed a historic rise in the number of SMEs. Because of that, the country’s economy has exponentially increased. However, what accounts for this economic growth? How are these SMEs able to find a base in the market to stand?

Well, one should give credit where it’s due; and, the credit for SMEs rise should go to alternative financing firms. Since their inception, these firms have worked to provide the necessary cash to the small and medium cap enterprises to grow and expand.

The biggest benefit the SMEs have experienced is that alt-fin firms like Cresthill Capital have saved their hassle. Further, this new financing sector is flexible in its procedures and regulations which is working well for SMEs. Thus, making it an SME favorite.

Despite all this, one is bound to wonder why such businessmen favor such an unconventional means of funding. To know the answer, let’s delve into it:

Approval is done efficiently and in no time!
Usually, if a businessman approaches a traditional channel to fetch funds for their venture, there is a high chance that the businessman will either have to wait for a long time or his application will be rejected on the basis of his low credit score.

Meanwhile, if the same businessman approaches an alt-fin firm like Cresthill Capital, the first thing observed is that the company does not take ages to approve their application. Besides approving, the businessmen also find that these firms don’t consider credit score as their criteria for approval. Instead of their credit score, these firms look for transactional details, expenditure/ revenue patterns, overall sales, and other data to understand how they can chip in to help the venture grow.

Made for the SME Owners
It’s hard for a businessman to approach a traditional channel for quick funds given that these channels are rigid with their regulations. Further, if a businessman does not boast substantial collateral then it becomes harder to fetch funds.

This is where firms like Cresthill Captial come into play. They understand the need and what importance quick funds hold for a businessman. With different services like working capital funding, expansion funding, equipment funding, merchant cash advance, etc., they cater to every kind of situation a businessman can face. So, even if a traditional channel denies to help, these alt-fin firms are there to provide support and see their clients grow.

No fixed criteria
Apart from their approach, these firms don’t have a fixed set of regulations that a client needs to meet for getting the funds. Here they don’t take credit score or collateral(as mentioned) their primary aspect to judge an applicant. Moreover, Cresthill Capital reviews their client’s past few months’ bank statements, personal transactions, etc to understand how well that client has fared in the market and how they can be of that client’s help.

This user-friendly and unorthodox way of examining an application makes them an SME favorite. Thus making them trustworthy and reliable.

Delayed Payments Almost Brought My Business To A Standstill! Until I Discovered Accounts Receivable Financing.

A Wall Street Report states that financial chiefs at U.S. companies are now holding back payments to their suppliers for longer than at any point in the past decade. The aim is to keep more money in hand! Another study by the Hackett Group Inc. estimates the 1,000 largest U.S. public companies have nearly $1.1 trillion tied up in inventories, payments to suppliers, and payments not yet received from customers.

Naturally, this creates a domino effect across the whole economy, forcing even small businesses like mine to deal with extended delays in payments from customers. While the large conglomerates might be able to manage their operations with this delay, it is incredibly hard for a small business to operate under these circumstances.

How delayed payments affected my business
As a supplier of custom auto accessories, my company almost came to grinding halt when auto dealers and bodywork companies started asking for longer and longer payment extensions. The expenses stayed steady – after all, salaries, insurance, electricity bills, my personal expenses, etc. came like clockwork every month. For the first few months, I managed from my business savings, as the situation dragged on, I dipped into personal savings. However, things really came to a head when the lack of cash started affecting my ability to fulfill future deliveries.

At this point, I switched my attention from pursuing clients for payments to looking for a fresh source of capital. I had a breakthrough when I came across funding offers called accounts receivable financing or invoice factoring. Further research brought me to the New York-based alternative lending company called Cresthill Capital, and I signed up for an invoice factoring funding deal with them. It totally turned my business around!

What Is Accounts Receivable Funding And How It Helped My Company?

Accounts receivable financing takes into account the outstanding invoices of a company – this is money they haven’t received yet, but are likely to do so in a few months. The lender advances a large part of this amount (in my case 80%) to the business. The invoices are paid to them directly, and when they receive the money, they pass on the rest after deducting a predecided amount of % as their funder’s fee. It was the solution PERFECT for my situation!

I got the cash I needed to operate my business smoothly
I had been feeling the pinch for many months; getting the money in my bank account was such a relief as I could finally start concentrating on fulfilling new orders and could now confidently look for new business.

The funding was incredibly fast
I had heard that alt-lenders are fast, but to experience it was something else entirely. Crest Hill Capital, the alt-lender I applied to, finished the process in 3 days flat – and that included all the paperwork!

Great rates and comfortable repayment terms
Yes, I had to pay a fee to get the money that I was owed, but ultimately it was worth it. My business had started suffering. I was delaying payments to my vendors, and this was spoiling my relationships with them. The stress was also making me hound my clients, which was jeopardizing my future business deals with them.

I have no Cresthill Capital complaints when it comes to the rates and terms; I got very competitive fees from them, and the whole deal wrapped up quickly in just a few months, so I didn’t get stuck in a long-term debt situation.

A year later – My business is flourishing, and I have gone back to CrestHill Capital twice to access additional funding – they have a range of financing offers, and I have found their merchant cash advance extremely useful as well.

I am not happy about paying extra to access my own money, but for small businesses like mine, there seems to be no other option. Till I have enough cash reserves to manage delays, I will partner with Cresthill Capital, and to be frank, I am thankful the option exists.