In 2025 non-bank lenders will continue to take market share because they’re easier to do business with. Banks have their strengths, particularly in traditional banking services. However, non-banks are stepping in to offer innovative solutions, such as fintech companies that use different data sources like merchant account information to build systems more quickly. These could include e-commerce payments like Stripe or card payments from brick-and-mortar shops. Banks can sometimes be slower to adapt to changes or may prefer to focus on their core services.
Top 5 Reasons to Use Alternative Business Finance
Speed of Approval
Our lending partners can often offer same-day approval and typically act quicker than banks. While CFOs may start working on bank applications months in advance, business owners often face immediate cash flow needs, making alternative finance a more accommodating option.
Less Documentation
Our lending partners can approve loans with just two documents: accounts and bank statements. Business owners frequently get frustrated with banks' extensive documentation requests, which can include draft accounts, business plans, cash flow forecasts, and more. This can be both time-consuming and expensive.
Flexibility for Missed Payments
Our lending partners are often more forgiving than banks when it comes to missed payments. If a business has left finance applications too late, resulting in bounced direct debits and referral charges, alternative lenders may still offer solutions, catering to different risk thresholds.
Seasonal Business Compatibility
Most banks offer term loans with regular repayments, which can be challenging for seasonal businesses. For example, a hotel in the West might have a busy summer and a quiet winter. Alternative lenders can provide merchant account-based lending with flexible repayments that align better with seasonal cash flow cycles.
Higher Loan Amounts
Banks might have strict credit limits that don't meet a business's full needs. In such cases, alternative lenders can step in, offering unsecured lending or specialist asset-based lending to bridge the gap.
Does your business plan to grow in 2025 and need financing? Contact the Business Loans team at 01 55 636 55 for fast finance quotes or email hello@businessloans.ie.