According to a study done by Scottish Pacific, there is a growing interest amongst small and medium enterprises or SMEs, in using specialist non-bank lenders to provide their business loans. It might not be of any surprise that in the same study, over a third of SMEs don’t have trusted business advisors and less than five percent would go to their bank manager for business advice instead. That screams volumes about what confidence we have in our bank managers. Almost ten percent of those surveyed would go to a friend for business advice which is still more than the 9 percent that would go to their accountant.

SMEs looking for business loans

Specialist non-bank lending has been growing as the preferred method of reaching capital needs and getting business loans. There are many funding alternatives to get the money needed to grow a business and the lessening reliance on big banks is due to the competitive loan products available to small business owners. The non-traditional lenders growth in trust is not only due to the competitive products they offer but also the speed they can move at in processing business loans. Specialist non-bank lenders are more flexible than the big banks when it comes to repayment methods for small business owners.

Options for a wider range of loans and more flexibility have made the non-bank lender a friend to small business owners and a trusted advisor for how to grow a business. Big banks are less likely to care about a small growing business but a non-traditional lender will try their best to create a long lasting relationship and be a trusted advisor. Big bank advisors tend to have too much going on and those large institutions are not going to be as fast and flexible to help SMEs make ends meet or expand into new territory.

Surveys will continue to show the non-bank lenders like ALC Commercial growing as the preferred method of getting capital for growth because they are in it for the long run with small business owners. Big banks do not make it easy to get the funds needed at those crucial times and so it is no wonder why they are not sought out for business advice. SMEs should look to non-bank lenders like ALC Commercial or Business Loans for business advice and the business loans they need to expand.