6 reasons to choose alternative financing methods

Many companies today are not very clear why they should choose one of the alternative financing methods existing. However, certain detrimental economic circumstances for these companies have caused the need to find a new way of achieve the proposed objectives, boost the Business Growth either expand into new markets, among many other reasons. In this post, we tell you which are the main reasons to choose alternative financing methods.

Reasons to choose this type of financing

It is possible that the advantages of alternative financing do not have a very notable individual importance for a company, although when studied together, they can be seen to be a great opportunity to achieve the proposed business goals.

Thanks to the wide variety of different types of alternative financing, companies can identify with one of those types based on their needs. And, as this business area develops, the options are better. Speaking from a general perspective, we can affirm that these financing modalities have the following advantages:

1 # Agility in the process

The procedures have been accelerated, now by simply filling out an online form you can access the possibility of finding investors who are interested in develop your idea. This does not happen in the traditional methodl physically going to a bank and filling out a large number of forms, in addition to wait a certain amount of time for the response at your request.

If your profile is an entrepreneur, then you will understand that every minute counts, and that this time dedicated to finding bank financing, you can use it for another activity. Ease and efficiency They are basic characteristics in those crucial moments.

2 # Greater flexibility

It is well known to most of us that requests for public financing they are very strict, in addition to the requirement of having to meet certain characteristics. In short, it is necessary to adjust to a specific profile to be able to access the financing that your company needs so much.

With the option of private financing, this situation does not usually arise regularly. Companies and investors, they decide together what will be the conditions that define the financing, so this negotiation is for the convenience of both parties. It is therefore a great opportunity to achieve that unattainable goal.

3 # Reduced costs of the procedure

Applying for public financing is a service, so many people are involved in the approval. intermediaries that they charge for it. In the case of the private financing application, there are no intermediaries that may delay the granting of capital.

Furthermore, since it is an online procedure, all documentation is managed online. Operations over the Internet reduce time, effort and cost. They are therefore a good option for small companies and entrepreneurs who need an immediate solution.

4 # Diversity of options

exist numerous possibilities not only in the form of financing and in its characteristics, but in the investors and companies that want to participate in these businesses. Intention and desire are essential to reach a good agreement and obtain benefits for each of the parties involved.

5 # Personal advice

You may think that you may not know how to properly choose the type of financing you need, or the right investors or companies for it. Therefore, the alternative financing born from the hand of experts that They study each case to know what is best for both parties.

This is what happens here at Alterfinance. We study Your case and we recommend which is the Better option according to our long experience in this field. In this way we reduce uncertainty and the feeling of risk for you.

6 # Not registered in CIRBE

As you know, CIRBE It is a database that contains all the financing information of each banking entity with all its clients. If you opt for private financing, This activity is not recorded in this database. If in the future you need to access some type of loan or public credit, you will be able to do so without seeing that this may have an impact in any way.

 

These are some of the advantages of choosing this type of financing for your business plans. The important is achieve your goals, reach the goal you have set for yourself, and it is a very common need for many companies today. For this reason, every day conditions are improved for both investors and companies, thus reducing the risk.

If you want more information about what possibilities you may have, contact contact us. We will analyze your situation and you will get a response soon.