Why More Entrepreneurs Are Choosing Alternative Lenders Over Banks
American Financial Services LLC
In the past, business owners who needed funding had only one real option walk into a bank,
fill out mountains of paperwork, and hope they got approved.
But times have changed. Over the past decade, alternative lending has become a go‑to funding source for entrepreneurs looking for faster, more flexible options.
So why are so many business owners moving away from traditional banks and choosing alternative lenders instead?
Let’s break it down.
1. Faster Approvals and Funding
One of the biggest frustrations with banks is how long it takes to get a loan approved.
It’s not unusual for the process to take weeks — sometimes months.
Alternative lenders, on the other hand, often approve and fund deals within 24 to 72 hours.
When you need money to jump on a new opportunity, cover payroll, or purchase inventory, speed matters.
2. Less Paperwork, Fewer Hoops
Banks are known for strict lending requirements:
Years of financial history
High credit scores
Collateral requirements
Endless documentation
Alternative lenders focus more on your current business performance rather than just your past credit history. Many will approve loans with:
Lower credit scores
Limited operating history
No collateral
That means more businesses get a “yes” instead of a “sorry, you don’t qualify.”
3. Flexible Loan Products
Banks typically stick to a small set of loan types, like term loans or lines of credit.
Alternative lenders offer a wider range of products designed to fit different needs:
Merchant cash advances
Equipment financing
Invoice factoring
Short‑term working capital loans
Credit card stacking programs
This flexibility allows entrepreneurs to match the right funding to the right situation.
4. Approval Based on Business Potential
Banks often focus on your past — your credit history, tax returns, and balance sheets.
Alternative lenders look at where your business is going, not just where it’s been.
If your sales are growing or you’ve landed a big contract, that future potential can help you secure funding even if your past numbers aren’t perfect.
5. Personalized Service
Many alternative lenders work closely with business owners to find creative funding solutions.
Instead of being treated like just another account number, entrepreneurs often work directly with a dedicated funding specialist who understands their industry and goals.
The Bottom Line
Banks will always have a place in the lending world, but for many entrepreneurs, they’re simply not the fastest or most flexible option.
Alternative lenders are filling the gap by offering:
Speed
Flexibility
Accessibility
Ready to Get Started?
If you’re ready to take your startup business to the next level, we’re ready to help. Contact American Financial Services today to learn more about our funding options and see how easy it is to get the capital you need — when you need it.
Apply now and let’s grow your business together!
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AMERICAN FINANCIAL SERVICES LLC
© 2025 | ALL RIGHTS RESERVED | LOANS SUBJECT TO LENDER APPROVAL
The operator of this website is NOT a lender, does not make offers for loans, and does not broker online loans to lenders or lending partners. Customers who arrive at are paired with a lender or a lending partner, and redirected only to lenders or lending partners who offer business loan products.
© 2025 | ALL RIGHTS RESERVED | LOANS SUBJECT TO LENDER APPROVAL
The operator of this website is NOT a lender, does not make offers for loans, and does not broker online loans to lenders or lending partners. Customers who arrive at are paired with a lender or a lending partner, and redirected only to lenders or lending partners who offer business loan products.