Reports on Monday (May 16) highlighted New Business Funders, a recent addition to the alternative lending industry, which, like other players in the vertical, touts its ability to fill the gap for business finance left by banks.
According to the firm, some of the biggest challenges in securing a bank loan or financing from the Small Business Administration is the requirement for an extensive history of business financial documents, making it even more difficult for startups to nab funding, the company said.
“Our funding platform is here to change all of that,” vowed New Business Funders Founder Troy Bohlke. “We want to provide the small business startups with the capital they need to make their dreams come true by matching their needs to find the capital right for them.”
He added that the company provides a funding program that is “true blue,” understanding the inability for startups and micro-companies to provide proof of financial success often needed to secure a bank loan.
According to Bohlke, startups are at a disadvantage without startup capital.
The company reportedly offers zero percent interest for the first six to 12 months of a loan. Small businesses need a FICO credit score of 680 or higher to apply.
“We help the entrepreneur access capital through our platforms of dozens of lenders and affiliate partners,” said New Business Funders Partner and COO Holly Crabtree in a separate statement. She added that the platform links businesses to lines of credit in an array of sizes and that businesses can receive approval within 24 hours of sending their credit score, with funding landing with an applicant within 21 business days.
The COO added that the platform helps businesses improve their financial standing if they need help.
“If the business owner needs help getting their FICO score up or pay down some cards, it could take a bit longer,” she said. “We consider ourselves a resource center because we educate our customers on the funding and credit process and save a tremendous amount of time getting our clients to their goals."