Bank Loans vs Alternative Lenders: Which is Right for You?
Understanding the key differences between traditional bank financing and alternative lending options
5-10x
Faster Approval
70%+
Higher Approval Rate
24-48hrs
Funding Speed
$250M+
Total Funded
Side-by-Side Comparison
Traditional Banks
Approval Time
4-6 weeks minimum
Approval Rate
20-30% for small businesses
Credit Requirements
700+ FICO, extensive docs
Collateral
Usually required
Interest Rates
5-10% APR
Best For
Established businesses with perfect credit
Recommended
Alternative Lenders
Approval Time
24-48 hours
Approval Rate
70-80% for qualified applicants
Credit Requirements
580+ FICO, minimal docs
Collateral
Often not required
Interest Rates
8-25% APR (varies by option)
Best For
Fast funding, flexible requirements
When to Choose Each Option
Choose Traditional Banks If:
- You have excellent credit (700+)
- Your business is established (2+ years)
- You want the lowest possible rates
- You can wait 4-6 weeks
- You have collateral available
Choose Alternative Lenders If:
- You need funding quickly (within days)
- Your credit is fair or building (580-700)
- You're a new or growing business
- You don't have collateral
- You value flexibility over lowest rates
Frequently Asked Questions
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