Furthermore, traditional lending sources take several weeks to process a credit application. With alternative lenders like Crest Hill Capital and Mantis Funding, however, the funding disbursal process becomes a breeze. There are no collateral needs, plus new-age risk assessment methods mean businesses are not entirely dependent on credit scores.

In such a conducive environment for startups, there are a few financial instruments every company looking to expand and grow must know. Here's a quick list of the three main types of alternative lending offers every small business owner must be familiar with.

1 - Equipment Loans

Equipment is the backbone of every business, and when you are in the expansion phase, this is the primary segment you will need funds for. Alternative lenders offer equipment financing, i.e., a hundred percent of the value of equipment like vehicles, computers, and machinery to facilitate expansion and growth. The equipment funded by the alternative lender acts as a collateral. This means the lender is more interested in the value of equipment than your credit history.

2 - Business Line of Credit

This is a revolving type of credit, wherein the credit availing company can draw up to a pre-determined amount as needed. The availed amount needs to be paid back later with interest, and the amount will reset back to the original value. The biggest advantage of a Business Line of Credit is that the business can use this amount for a variety of purposes ranging from increasing working capital to purchasing inventory.

Alternative lenders, like Crest Hill Capital, offer funds for growth and working capital funding. A growth-focused startup should always have this safety cushion with them to tap into fresh opportunities. Business Line of Credit also acts as a savior in emergencies that otherwise would be unsolvable.

Invoice Financing

Imagine you are a service-based startup in need of urgent cash. You have several invoices that will be paid later, but your cash need is immediate. Late paying clients can be a further headache. Invoice financing is the alternative lending instrument that would save the day for you. You will be able to get a cash advance on the money your company is already owed.