Alternative lenders are a growing force in the credit market. These non-traditional lenders emerged after the financial crisis and filled a significant void when traditional banks tightened lending standards. These lenders offer a unique set of benefits and requirements for borrowers. These lenders offer accelerated mainstream lending decisions and are willing to work with home buyers.

Alternative lenders offer accelerated mainstream lending decisions

Non-bank lenders have a reputation for offering better terms than traditional lenders and are less subject to government regulation. Unlike banks, alternative lenders can offer loan decisions in as little as a few days. They require only a few documents to assess your application, such as your credit score, tax returns, and bank statements. They also tend to offer loans of smaller amounts. Traditional lenders have strict lending terms and can be difficult for small businesses to meet. Alternative lenders provide small businesses with alternative financing options and allow them to leverage their assets.

Alternative lenders are increasingly popular with consumers. According to an Oracle study, more than 40% of retail consumers said they would prefer to use a nonbank company over a traditional bank. This is because these lenders can process documents faster and approve loans quickly.

They are willing to work with home buyers

When looking for financing for a new home, non-traditional lenders are willing to work with you. These loans are available for home purchases and refinancing. The requirements for purchasing a home are different from refinancing, so it is important to consult with a licensed loan officer. Bank statement loans, for example, do not require income documentation, tax returns, or other documents to support the amount you borrow.

Another option for non-traditional lenders is credit unions. These institutions are often overlooked by consumers, but they often offer better mortgage deals than traditional banks. A representative of a credit union can explain the lending process and what programs they have available. First-time homebuyers can qualify for loans with very favorable terms.

Non-Traditional lenders are more likely to issue loans to borrowers that traditional banks have rejected. They are also more likely to approve borrowers with a low credit score or who need to complete home renovations. Non-bank lenders are also more likely to offer government-backed loans, which are more likely to be approved.

They require a business plan

A business plan can be required by many lenders to access favorable loan terms and lower interest rates. A good plan will show a lender that your business idea is legitimate and will make money. A business plan should include details about the amount of money you seek, what your business will do with it, and how you expect the loan to benefit your business. You can also include an executive summary, which summarizes the most important aspects of your business plan.

Depending on the type of business, a traditional business plan may be the most suitable format. Traditional plans often include a mission statement, product or service, basic company information, financial projections, and a high-level growth plan. However, a business plan need not follow a strict outline. If you’re looking for a loan from a traditional lender, it may not be necessary to submit a traditional business plan.