What are the benefits of Alternative Lending?

Alternative lending can offer several benefits compared to traditional lending, including:

1. Accessibility: Alternative lending platforms provide access to funding for borrowers who may not meet the strict criteria of traditional lenders. This can include individuals with limited credit history, small business owners, and startups that do not have a long track record of revenue.
2. Speed: Alternative lenders can often process loan applications more quickly than traditional lenders, with some platforms offering same-day or next-day funding. This can be particularly important for small business owners who need to act quickly to take advantage of a business opportunity or address a sudden cash flow shortfall.
3. Flexibility: Alternative lenders often offer more flexible repayment terms than traditional lenders. For example, borrowers may be able to choose a repayment schedule that aligns with their cash flow, or they may have the option to make early repayments without incurring penalties.
4. Lower fees: Some alternative lenders may charge lower fees than traditional lenders, particularly for smaller loans. This can make borrowing more affordable for individuals and small businesses that may not have the same economies of scale as larger corporations.
5. Diversification: Alternative lending can be a way for investors to diversify their portfolios and potentially earn higher returns than they might get from traditional investment vehicles. This is because alternative lending platforms often allow investors to fund multiple loans, spreading their risk across a range of borrowers.

It’s important to note that alternative lending can also come with some risks, such as the potential for higher interest rates or the possibility of default. As with any financial decision, it’s important to carefully evaluate the terms and risks before borrowing or investing through an alternative lending platform.