How Business Lending Services Match Up

Business lending services provide a wide array of lending services. Their purpose is to meet financial needs by providing necessary funding.  The business lending services available can be both banks and private institutions, and provide loans that have flexible terms. Some loans may be backed by the U.S. Small Business Administration (SBA).

Business lending services can fulfill the needs of businesses easily and quickly, depending on the nature and amount of the loan being requested by the business. This flexibility, and ease of use, makes some business lending services easy to apply for. Seeking funding directly from a traditional bank can be difficult.

Bank Lenders

Business lending services provided through a commercial bank specializes in the financing needs.  These services offer a variety of loan packages and products to meet the short, mid-range and long-term funding needs of a business. These loans can include anticipation, construction, payroll, and other forms of financing. The requirements for these loans are set by the lending service and can be as flexible or rigid to meet the needs of both the business borrower and the lender.

Non-Bank Lenders

Non-bank lenders are services provided by companies that are not organized as banks. Non-bank lenders provide loans that can range between several thousand to several millions of dollars.  These networks are funded by venture capitalists, hedge funds and other large institutional sources of funding. The loans charge interest rates comparable to other types of lending institutions and sets similar terms and conditions.

SBA Guarantee Participants

Bank and non-bank lending services participate in loan guarantee programs such as those offered through the SBA. This participation is critical in providing needed resources to small business in need of funding. Whether the lender is a bank or non-bank institution their participation in the loan guarantee program is the same.

The type of lending service that is right for a business depends on the business’s needs. A non-bank lending service may be more flexible and able to extend loans with more favorable terms than a bank lending service can.  Either way, a business is best served by investigating the various business lending services available to find the one that can provide the best loan offer.  Stacking the loan services against each other will provide an adequate comparison for a business to base their decision.