Affordable Business Loans for the SME

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One of the principal problems facing many small to medium businesses today, is that they are the sector that is most likely to require an occasional speedy burst of cash, but are also the group that often find it hardest to actually get. This is partially caused by the way in which banks have traditionally done business, which really hasn’t kept up with the times. The banks like a nice stable business, where all growth is planned well in advance and duly financed through a carefully laid out business model. Now that works out fairly well for a large company, who has been in business for many years and for whom modest but steady growth works well. For the smaller business though, opportunities come in the market from time to time, which require rapid reaction and the banks just don’t seem to get it.

Cash Needed Quickly

Around twenty years ago, a really nasty hail storm hit the North Shore and Eastern suburbs of Sydney, causing extensive damage to vehicles and damaging the rooves of many houses. Roofers and panel beaters were inundated with work, but many of them were not able to take advantage, as they didn’t have the necessary finance to buy the materials to do the work, given that they were having to wait to be subsequently paid by the insurance companies. This meant not only did many small businesses miss out on an excellent opportunity, but many car and home owners were much delayed in seeing their necessary repairs. The banks just couldn’t process short term loan applications quickly enough to solve the problem. This is not an isolated incident, though its magnitude was quite unusual. Business opportunities come along from time to time, where purchase of bankrupt stock or cheap equipment from someone no longer trading, can really help a small business, if they have the cash to snap it up quickly.

A New Form of Lending

Technology drives many things and the financial sector is no exception, although the banks seem a little slow to realise this. Alternative lenders have taken advantage of the way money can be moved around the world incredibly quickly and economically. They are able to offer tailor made loans solutions, and provide an answer to your application in minutes. Max Funding Small Business Loans use an automated technology, to search lenders all around the world, to find those who are ready to lend money in the amount you want, over the time frame you want, with repayment amounts, chosen by you. When you compare the results, it is highly likely that you will find several options that are going to provide you with a much better deal. After all, it is much better to borrow money and pay it back in three months, if that is what you need and can afford to repay, than get stuck with a rigid bank loan over a year, where you pay interest for an extra and unnecessary nine months more.

Financial Technology is changing the way the money markets work, making it far simpler for the SME to find swift and affordable finance in a hurry, when it is needed, without having to wait for the bank anymore.