"Non-Bank Lenders" Pull Ahead in Small-Business Financing

US Capital Partners, LLC.Small business owners often think a traditional bank is the best source for a business loan. Non-bank lenders, however, are increasingly considered to have the competitive edge.

Small businesses seeking loans from traditional sources struggle to secure the amounts they need or deserve. Bank underwriting standards are still high, and the bank regulatory environment is expected to remain stringent. This makes it difficult for many small businesses to qualify for bank financing. With demand for loans high and increasing, this has created an opportunity that is being filled by non-bank lenders and alternative debt funds. "Small businesses have very individual needs," explains Jeffrey Sweeney, CEO and Managing Director of small-business lending and advisory firm US Capital Partners, LLC. "Traditional banks try to fit the small-business customer into one of their traditional business loan products, rather than tailor their products to meet the needs of their small-business customers. This has created new opportunities for non-bank lenders capable of designing flexible financing options for these clients."

Why Non-Bank Lender Are Increasing Their Market Share
Non-bank lenders have the following advantages:
  • They typically offer financing products that may not be available at a bank.
  • They tend to be more responsive to the real needs of small businesses.
  • They are less restrictive as to what types of businesses qualify, and can work around high loan-to-value, poor credit rating, or recent losses.
  • They are often able to amortize loans, at competitive rates, over a longer period than a bank

Today's New Challenges for Small-Business Owners

With so many more players joining the alternative funding space, the small-business lending marketplace has become even more fragmented. Non-bank lenders come in all shapes and sizes, and they tend to focus on a particular kind of lending or asset class only. Finding the right lenders, and then engineering the best possible financing between them, can be challenging.

Jeffrey Sweeney, CEO and Managing Partner of US Capital Partners "USCP"To secure optimal financing quickly and efficiently, it's best to get advice from a small-business lender and lead arranger who understands the fragmented marketplace. US Capital Partners, a leading small-business lender, specializes in structuring and securing optimal financing for a small business like yours either directly from their balance sheet or in coordination with other lenders. The firm's extensive relationships with both banks and non-bank lenders allows it to bring the most appropriate financing structure to your small business.

If you would like to know more about how your business can secure the funding it needs, email Jeffrey Sweeney, CEO and Managing Director, at jsweeney@uscapitalpartners.net or call (415) 889-1010.