With mounting financial pressure on borrowers and lenders, the economy is fighting to recover from the pandemic. Lenders and investors sat cautiously after the 2008 recession, leaving struggling businesses limited resources. However, will they act quicker this time? Due to advances in risk assessment technology and lessons from 2008, the answer looks like a yes.
Factors that make someone too risky for bank loans are not necessarily as hazardous for alternative lenders. Even now, they are looking for new opportunities in businesses that can readily adapt to post-pandemic life. The flexibility of alternative funding makes it a more appealing option for struggling businesses with pressing financial needs.
While normal circumstances would give many businesses time to make themselves more appealing to lenders, the urgency of the unexpected financial hit is driving many to seek immediate help. But, how can businesses make sense of their options? This article from Finance Monthly explains how.