How Fundbird is disrupting lending landscape
Getting Approved For a Business Loan Just Got Easier
Until recently, banks were the primary source of additional capital for small businesses. But following the financial crisis, and particularly during the economic recovery, there has been significant growth in innovative, online alternative funding for small businesses.
Some of the main advantages of online alternative funding include efficacy, speed and chances of being approved. Many of the big players in the alternative lending space offer online and mobile applications which enable you to apply for a loan in under 30 minutes, receive approval in a matter of hours and have money in an account within a number of days. This contrasts significantly with conventional bank loan systems which usually require hours of paperwork, actual visits to the bank and then several weeks to wait, before securing some form of credit.
With 73% of small and medium-sized enterprise (SME) employers aiming to grow their business over the next two to three years, the demand for funding has never been higher. Yet, the majority of SMEs are still not using the option of alternative lending and once they are declined from the bank, up to 37% are discouraged from continuing their search and in some cases are forced to close their business or experience static growth. Despite their small scale, alternative players have the potential to fundamentally change the way in which small businesses access capital, creating greater competition, price transparency, and a better customer experience.
One service that has emerged on the scene to help small businesses navigate through the new information overload and create more qualified leads for online lenders, is the online platform, Fundbird.
The company identified a need within the marketplace to aggregate legitimate lending sources and match small and medium businesses with the right alternative funding options. The company has partnered with the UK’s top funding providers based on criteria including: competitive interest rates, flexible payment terms and helpful customer support and is now pre-qualifying businesses with the most reliable, high quality lending partners.
Since its launch, Fundbird has helped more than 1,000 SMEs to find alternative financing across a variety of sectors. The platform covers multiple financial solutions, including secured loans, unsecured loans, asset based finance, trade finance, property finance, invoice finance, merchant cash advance, equity crowdfunding, peer-to peer lending, and start-up loans. Among Fundbird ’s alternative lending partners are Funding Circle, MarketInvoice, Ebury, Crowdcube, Liberis, iWoca, with plans to reach over 20 by the end of the year.
Sharon Argov, Chief Executive and Co-Founder said, “Despite the rise of alternative finance models, extending their options far beyond the banks, the new alternative lending landscape is still perceived as unchartered territory and can be daunting for SMEs that don’t have the time to explore the new landscape. We want to make this new world of finance accessible for everyone.”
While the online market is still in its earliest stages of transformation, it is clear that the traditional small business bank lending model has left gaps that are now being filled by new alternative lending offerings. This should benefit small businesses who, despite having to deal with higher interest rates in some cases, could find more transparency in product and pricing options, lower search costs, and better speed and customer service.
To see your business loan options, visit Fundbird now.