According to the Scottish Pacific SME Growth Index Report released this month, the number of SME businesses turning to non-bank lenders has increased by almost 30 percent since the Index was first launched in 2014. One in five SME business owners are reported to plan to fund their growth through non-bank lenders.
It’s not surprising to see this trend considering SME businesses often struggle to get financing through traditional means because of their size or lack of credit history.
Here are four great reasons why SME businesses are turning to non-bank lenders for unsecured business loans…
1. Instant processing
Business loans can take weeks or even months to process through banks, whereas non-bank lenders can process applications and make decisions on small business loans almost instantaneously. The Spotcap online credit process is completed in just three simple steps and the decision is made within minutes.
With Spotcap, business owners can withdraw money whenever and wherever they need. This frees up the money to allow companies to grow their business by buying inventory, hiring staff or whatever is needed.
3. Focus on SME’s
Let’s face it, the big banks are focussed on big business. Non-bank lenders, such as Spotcap, are entirely focussed on the SME market and therefore have a good understanding of what SME businesses need in order to grow. Credit decisions for banks are based on historical financials and old-fashioned credit scoring whereas Spotcap evaluates your real-life business and cash flow data.
4. Safe and secure
Historically banks were the only secure way of borrowing money but that has all changed with the rise of non-bank lenders such as Spotcap, which use systems that are as safe as banks. With these security systems in place, SME business owners know their privacy is in safe hands.
Originally published September 21 2016 , updated April 27 2017