There are so many times that we need money and we resort to some form of outside funding. Taking a loan from a bank is increasingly becoming a nightmare and this is the reason why direct funding is becoming so popular. People now prefer direct funding for business funding.
First, let us understand what direct funding is. When you receive funds i.e. you obtain business funding from sources other than a bank such as peer-to-peer lending, crowdfunding, etc., it is referred to as direct funding. This is because the chances of rejection of loan applications are very high when you try to borrow from a bank.
Mentioned below are some of the reasons that make direct business funding so popular today:
- Easy Source of Funding- When you take a loan from a bank there are endless formalities involved. But with direct lending things are a little easier. Generally, it has been seen that all lenders do not see eye to eye with why you are making a particular investment. A direct funding company might see huge potential in your investment and would readily give you funds. So, the business capital loans will not be as hard as they seem. direct financiers can be a ray of hope for you if traditional lending methods fail to provide you the needed help when you actually look up to them.
- Right Mentoring and Know-how – Direct lenders can be the business angels that offer you the direction that you need. This can be in return for a stake in the business. They can offer soft mentoring that can help your business touch heights. This kind of thing is not present when you take money from a bank.
- Fast Funding – Direct funding is faster than a traditional bank loan. It can take months for approval of your bank loan application. A direct lender can provide you with funds in less than 24 hours. This fast infusion of funds at the initial stage of your business can be a huge help for you.
- Freedom – With direct funding, the owner gets more freedom. direct financiers do not scrutinize your businesses too much. The business owner can utilize the money the way they like. With banks, such freedom is not possible at all.
- Cash Flow Stability – Direct finance offers steady cash flow to your business. This is almost like the financier giving you invoices upfront without any issue. It minimizes the peril of delayed payments as well as bad debts. This option is not provided by traditional banking systems.
For all your direct funding needs take the help of Direct Lenders Funding. They offer hassle-free money for your business at the earliest.