Some examples of non-bank credit options include:
- Direct lending from non-bank lenders such as credit funds or fintech companies using online assessments.
- Private credit funds that raise money from investors to provide business credit.
- Credit unions, which are cooperative non-bank institutions lending to their members.
- SME bonds, where businesses issue bonds to attract investors.
- Crowdfunding platforms for loan-based or equity-based investments.
- Leasing arrangements, including operating and financial leases for capital goods.
- Revenue-based finance, which involves receiving cash in return for a percentage of future sales.
- Merchant cash advances for quick funding based on future sales.
- Commercial loan providers (non-bank financial institutions) offering flexible loans.
- Social or community lending via non-profit organizations supporting local businesses.
- Peer-to-peer (P2P) lending platforms connecting borrowers directly to investors.
- Business angels and investment funds providing equity financing.
- Factoring or invoice financing, where unpaid invoices are sold to a factoring company for immediate cash.
These non-bank credit sources offer alternatives to traditional bank loans, often with more flexible criteria and faster access to capital, catering to various business needs and stages.
