Those who have recently been searching for a business or personal loan have been discovering the benefits that technology has been bringing to the financial markets. Getting a loan no longer means a painful trip to the bank, to fill out various forms, all the time feeling like a beggar outside the church doors, hoping for mercy. In fact the banks have actually been a little slow off the mark on the advances that Blockchain technology and crypto currency are bringing, which have enabled secure financial transactions to take place all around the globe, faster and cheaper than ever before. You no longer need to rely on the local bank, as lenders all over the world are out there looking for borrowers, more often than not, offering way better deals than the bank has to offer.
How Alternative Loans are Better
The traditional loan from a bank has tended to be a fairly stiff and standard offering of repayment times and terms determined entirely by the bank. They have a set of product offerings on the shelf waiting for a borrower to come along. Much as a bespoke suit is going to fit far better than one off the rack, so too, a loan that is specifically designed for an individual, is going to better offer what the borrower wants. Why would you want to pay the bank interest for twelve months, if you only wanted to borrow the money for three? Today an alternative lender like Max Funding use revolutionary technologies to allow you to take far more control over the terms of your loan, and tailor make it to your precise needs and abilities.
How They Work
Financial Technology, often referred to as FinTech, uses a complex software to match your loan parameters to lenders from all over the world, to enable you to specify what you want, the interest you are ready to pay and the time frame for repayment. The whole process is automated, so that when you have made your application, you can normally receive the answer within a matter of minutes. One has to wonder how much luck you would have getting the bank to agree to a loan on your terms, rather than theirs in such a short period of time.
By accessing thousands of lenders, the options that come back stand a very good chance of providing you with a far better deal than that which the bank might have offered you, had you succeeded in jumping through all of their hoops successfully.
Especially for the small to medium sized enterprise, the option of being able to access additional and speedy funding cannot be mentioned too lightly. While larger businesses tend to plan things out well in advance, smaller businesses have a great deal of flexibility in rising to and meeting the challenges and opportunities in the market.
From buying cheap stock or equipment from a company that has ceased trading or purchasing abnormal amounts of product to accommodate a sudden rush of business, getting your hands on cash quickly can sometimes be the difference between a company thriving, and one going out of business, which means new technologies in finance are good news for the SME.