Lendinero's blog on Growing Your Business
Today, many non profit lenders or certified development companies regulated by the SBA seek new funding resources. Where can they seek new funding? Traditionally, these organizations have turned to the SBA , foundations, grants, and companies who donate money. Today, there is a new breed of business funding out there known as alternative lenders. Alternative lenders will not provide funding directly to non-profit organizations but can do several things for certified development companies and non-profit micro lenders. First, they can supplement existing funding from these organizations. Most non profit micro lenders provide loans up to $50,000 with an average approval loan amount of $10,000. What if the business needs $50,000? Alternative lenders can fill the gap and provide the difference. In addition, if these organizations deny a loan, alternative lenders can approve business borrowers with credit scores as low as 500, because they based their credit decisions on cash flow. Alternative lenders can serve as a new business funding solution to non profit micro lenders.
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