If you were a small business owner in the early 1990’s, you had a few options for getting the financing you needed.
- You could seek out bank financing;
- You could seek out an alternative lender;
- You could borrow from friends or family
The first option was the most common one, meaning many small businesses were at the mercy of big banks. That often meant high rates, tons of paperwork and a long wait to see whether or not you were approved. Those were the Dark Ages of financing.
Fortunately, much has changed. Companies like Direct Capital have invested in technology that streamlines the process.
- Technology has shortened approval times. It used to be a weeks-long process, but thanks to cutting-edge technology at Direct Capital, it can now happen in as little as a day.
- Technology has cut down on paperwork. You don’t need to go through a stack the size of your desk to get financing, because most of it is online and significantly streamlined.
- Having access to Google searches and websites means you can research a lender before you ever call them or set foot in a location, allowing you to avoid the sales pitch and make an informed decision.
Taken together, this has transformed the face of small business lending, making it much easier for small business. The recession certainly took the wind out of the sails of many banks, but so did the rise of more convenient sources of alternative lending.
Tell us: How has financial technology made your life easier?