Raquel Toro
September 21, 2016
Access to capital has always been one of the biggest challenges for small businesses. Despite driving more than 50% of U.S. sales, many small businesses — especially those seeking short-term funding — find themselves overlooked by traditional banks.
If your business needs quick capital to fill an order, purchase equipment, or bridge a temporary cash flow gap, alternative financing could be the solution you’ve been looking for.
Why Don’t Banks Lend to Small Businesses Anymore?
The reality is: banks often see small business loans — especially loans under $1 million — as unprofitable.
Why is that?
- High overhead costs for small loan processing
- Strict credit score requirements
- Regulatory constraints that limit flexibility
So, while banks prioritize large commercial clients, small and mid-sized businesses are left behind, even when they only need $20K–$250K in short-term capital.
What Is Alternative Financing and Why Is It Growing?
Alternative financing refers to non-bank lenders offering fast, flexible funding to businesses that banks often ignore. This includes options like:
- Revenue-Based Financing
- Merchant Cash Advances
- Short-Term Working Capital Loans
These lenders are filling the funding gap — and doing it faster, with fewer requirements.
How Are Alternative Funders Able to Help?
Alternative lenders like CFG Merchant Solutions® succeed where banks can’t by:
- Going Digital
Most of the application and approval process is done entirely online. Business owners can apply in minutes, with approvals often made in 24 hours or less.
- Using Big Data for Smarter Decisions
Instead of relying solely on credit scores, lenders evaluate:
- Revenue and transaction history
- Bank account activity
- Credit card and payment behavior
- Social proof (reviews, social media presence)
- Business performance and deposit trends
📊 These data-driven models allow lenders to make faster, more accurate decisions — even for businesses with imperfect credit.
Are Alternative Financing Rates Higher?
Yes — rates can be higher than bank loans, but you’re paying for speed, flexibility, and access.
Your rate depends on:
- Time in business
- Monthly revenue
- Credit history
- Industry risk profile
Most importantly, you’re not disqualified just because your credit isn’t perfect.
✅ When used strategically, alternative financing is an investment in growth — not just a cost.
Can Alternative Financing Really Help My Business Grow?
Absolutely. Small businesses often seek short-term capital for:
- Purchasing inventory to fulfill a large order
- Upgrading or replacing equipment
- Bridging gaps between invoices and payments
- Launching marketing campaigns
- Covering payroll or operational costs during slow periods
CFG Merchant Solutions offers funding to help you move quickly, seize opportunities, and grow with confidence.
Why Choose CFG Merchant Solutions®?
We’re more than just a lender — we’re a partner for your business’s growth.
Here’s what you get with CFGMS:
- 10+ years of institutional investment and credit expertise
- Flexible financing tailored to your needs
- Technology + human underwriting for smart, fast decisions
- Direct funding with no brokers or middlemen
We specialize in helping small and mid-sized businesses across the U.S., especially those that have been underserved by traditional banks.
Apply for Small Business Funding Today
Need quick access to capital? We’re ready to help.
👉 Apply online now — it only takes minutes
📞 Prefer to talk? Speak with a funding expert
Let’s grow your business — together.
FAQs: Alternative Financing for Small Businesses
Q: What is alternative financing?
A: It’s non-bank business funding, including short-term loans and cash advances, offered by private lenders who evaluate more than just credit score.
Q: How quickly can I get funding?
A: Many business owners receive funds within 24–48 hours of approval.
Q: Will poor credit disqualify me?
A: Not necessarily. Alternative lenders evaluate your business’s performance, not just your FICO score.
Q: What can I use the funds for?
A: Anything your business needs — inventory, payroll, marketing, repairs, or working capital.