Alternative business financing provides business owners access to on-going capital. Most alternative lenders will give you a chance to renew if you demonstrate satisfactory payment history and if you maintain your business earnings steady. What is a renewal? A renewal is when you pay down 50% of the outstanding balance on your business loan. This can only happen one of two ways:
1. Let’s assume you got a 12 month term loan. On month number 6; you have paid down the outstanding balance by 50%.
2. You pay down the balance by contributing more payments or lump sum payments to bring the outstanding balance to 50% from the original loan amount.
When you do this, lenders will offer you the same amount of capital or more if your business earnings remain steady or increase. At the same time, you may be legible to receive longer terms and lower interest rates. This allows businesses to obtain on-going capital twice or more per year.