While niche industries might not have the same widespread appeal that companies like Amazon and Costco do, they are still supported by dedicated customers who either love what they do (e.g., vegan bakeries or homebrew stores) or are in a pinch and need their services (e.g., local pool cleaning companies or personal injury lawyers based in a specific city).
Like all other small businesses, niche companies are not immune to cash-flow problems. The argument can be made that—due to the fact that niche businesses don’t appeal to the masses—these smaller outfits may even be likelier to suffer from cash-flow problems than run-of-the-mill companies.
When the owner of a niche small business realizes that money is tight, it may be time to look for an outside source of financing. The last thing you want to do is roll the dice hoping enough revenues come in to offset your operating expenses, for example. What happens if your actual sales don’t meet your projections?
First things first: There’s no shame in applying for small business loans. In fact, half of small businesses run into cash-flow problems every now and again and need to seek financing.
So if you find yourself in such a predicament, realize you’re not alone. But before you head to the nearest bank to apply for a small business loan for your niche company, you may want to consider shopping alternative non-bank lenders instead.
Whereas banks expect you to complete a long application and submit several documents at the nearest branch, non-bank lenders allow you to apply for small business loans online. You can actually complete the entire application process in 15 minutes or less. Once that’s done, you can expect to hear if you’ve been approved within 24 hours. Assuming you’ve met the criteria, money will be deposited in your business’s bank account within the next few business days.
You can get to work right away.
In addition to the speed of the process, applying for small business loans online from a non-bank lender comes with a number of benefits, including:
A much higher chance of approval. Traditional banks are funding fewer small businesses these days. Big banks, for example, only sign off on 23 percent of small business loan applications. Non-bank lenders, on the other hand, are much more willing to fund small businesses—even if they have poor credit scores. So not only is the application process faster, but your time is less likely to be wasted.
You don’t have to put up collateral. To qualify for a loan from a bank, small business owners almost always have to put up some collateral—like property or a car. This way, if the business goes under and the loan cannot be repaid in full, the bank is able to make at least some of its money back. Non-bank lenders make no such stipulations. So in the unlikely event that you’re forced to shut your doors for good, you won’t have to worry about looking for a new place to live.
Put the money to use however you want. Banks don’t give small business owners blank checks. Instead, they expect any money they lend to small businesses to be used in specific ways. For example, if you apply for a loan from a bank under the guise of remodeling your restaurant’s kitchen, that’s precisely how the bank expects you to use the money. Loans from non-bank lenders are much more versatile by design. You can use them to cover operating expenses, buy more inventory, open a new location, hire new staff members, invest in new tools and technologies, and more—basically any way you see fit.
If you’re looking for money to grow your niche business, apply for a small business loan online with a non-bank lender today. The money will be in your hands before you know it—which means you can stop worrying about how you’ll make payroll and start focusing on what you can do to provide even more value to your customers.
To learn more about how your small business can secure a loan from a non-bank lender, check out our new ebook, Your Roadmap to What Documents Are Needed for Different Types of Small Business Loans.