A Look At How Online Lenders Leverage Alternative Credit Data To Fund SMEs

In less than a decade, alternative online lenders have created a whole new thriving industry by providing easy and accessible funding to small businesses and individuals. Much of their success – and growing popularity - is based on the fact that they provide highly flexible funds really fast to SMEs (including to ones with poor credit ratings). How do they do it? Well, it's all because of the data!

Alternative lenders (such as Cresthill Capital, which deals exclusively with small and mid-sized businesses) use a variety of data points to determine the risk attached to their clients. Using a mix of traditional credit data and alternative credit data gives online alt-lenders increased accuracy while assessing the creditworthiness of its clients. This, in turn, allows them to approve credit for companies deemed high-risk by banks and credit unions.

What type of data is used by alternative financing companies?

Usually, most banking institutions use financial information like credit score, internal bank records, and tradelines to determine whether or not to lend to individuals or businesses. Alternative lenders like Crest Hill Capital reviews applications with a wider variety of data. Along with the usual FICO score, they tap into financial information such as payment patterns for utilities or rentals, business transactional data, expense patterns, property records, and other publically available information to get a sense of the client’s reliability.

Some alt-lenders also use additional information such as social media feeds, address stability, subscriptions, tax records, and similar data to assess the risk of clients with very thin credit histories.

Most lenders ask customers to provide access to their account information and direct paperwork as proof; others use data aggregators for indirect information. But just collecting data is not enough! To get an accurate picture of a client's financial capabilities, this data must be analyzed – for this, alt-lenders leverage AI-backed fintech tools.

Time-wise, it is untenable for this data to be read and analyzed by individuals, but AL-enabled tools can crunch through these numbers almost in real-time - making the process super fast!

How does incorporating extended data help lenders and business owners?

When it comes to risk assessment, traditional financial data like credit scores, are more accurate than some alternative sources such as social media and expense patterns. However, while lending to new businesses or businesses with a poor credit history, these data touchpoints can be extremely helpful to arrive at the correct decision.

- integrated fintech allows lenders to process funding applications faster. In some cases, lenders such as Cresthill Capital review applications in less than 24 hours!

- alt-lenders can also use this data to serve clients with poor FICO scores or new businesses without established financial histories.

- access to data also allows them to be more flexible while dealing with individual clients. With an overview of the client's financial health, they can design specific funding deals to suit their needs.

The Bottom Line

The traditional banking sector is too narrow in its outlook and risk assessment approach. Additionally,  they are also stymied by government regulations. Their risk-averse business model has an especially negative impact on the American small business community, which, as a result, was frozen out of the credit market altogether. Alternative data has made it possible for private lenders to offer this underserved community with funding at competitive rates while keeping their risk balanced. A win-win for both the lenders and for the businesses looking for credit.

The What And Why Of Running Small Businesses

One thing all candidates regardless of party affiliation agree on, is that small businesses are the true backbone of the United States economy. It is not Wall Street or the mega-corporations, it’s the local business that serves the needs of the community. Small businesses have challenges that are very different from stock companies.

They do not have institutional investors, they do not have investors at all. Most small businesses are started with the owner’s personal funds or finance from family or friends. But sometimes it needs help. It needs investment from a company like Cresthill Capital.

What is Crest Hill Capital?

Crest Hill Capital LLC is a non-bank funding company that serves only small businesses. They grant merchant cash advances to businesses that need small amounts of money to continue to operate through hard or slow times. The approval criteria are different than that of a bank.  Based on the criteria, the company decides how much money it can advance to a business.

It works with the client to set the repayment rate and other terms and simplifies the repayment process through technology. Best of all, this company can get the business its funds faster. As soon as all the contracts are signed and delivered the business can have the funds it needs in as little as a few hours. Clients can take up their grievances with Crest Hill Capital regarding any transaction or interaction with the company.

How Does It Actually Work?

The business model and books are examined so as to help assess the risks involved. This primary assessment helps determine the most appropriate funding methods and repayment options for the business. This is opposed to the traditional banking system which adheres to a funding and payment structure that is rigid and does not offer merchants flexibility. Non- banking capital funding institutions prioritize the specific needs of small businesses and focus on repayment methods like the split percentage plan that is not only affordable for them but also provide the flexibility they require for development.

How Is The Lender Paid Back?

The contract determines how the lender gets the payment. The client can either have the payment processor split the payment between him and the lender or he can have the lender withdraw a percentage from the business bank account. This is all determined in the contracts signed before the cash advance is granted. For many businesses that have seasonal ups and downs, this is a great way to fund the business.

Banks typically won’t give micro funds because it is not worth it to them. The amount they make on the funds does not cover the processing costs required to make the profits they require. This is frequently what causes small businesses to fail. All they need is a micro fund to boost their business. If the client does a search in the Cresthill capital customer service of the company the website could help put his/her mind at ease and give more information.

Top Benefits of Merchant Cash Advance for a Local Liquor Store Business

Running a liquor store in the United States can be highly rewarding and profitable. However, getting funds from a bank for working capital or growth needs is pretty challenging. To simplify the funding process and help small businesses such as liquor stores obtain working capital or growth funds quickly, Cresthill Capital provides an alternate solution – merchant cash advance.

Roadblocks to Banks

Most local liquor stores are private businesses run by small business owners who depend on a steady stream of cash inflow to maintain or grow their business. Obtaining funds from a bank is challenging because banks and other traditional money lenders see them as high-risk businesses, especially if the business owner has a poor credit score.

Moreover, banks usually require some form of collateral. The process of applying, qualifying and obtaining the requested amount can take weeks, if not months.

Benefits of Merchant Cash Advance

Cresthill Capital provides small business owners with access to a merchant cash advance. Merchant cash advances do not come with loads of paperwork to fill out or worries about credit scores. Funding companies evaluate merit by taking into consideration your actual business performance.

If you’ve been in the business for a considerable number of months and you’re witnessing steady sales and revenues, you have every chance of getting approval for funding. Once you secure funding, the advance amount is deposited in your business bank account. You repay a small portion of future receivables till the time the entire amount is repaid. There is no need for putting up any collateral.

Why is it A Good Option for Liquor Stores?

A merchant cash advance is the ideal funding solution for liquor stores because most of the sales are done through cash or credit card. The owner should have little trouble keeping up with repayment. Cresthill Capital advisors offer flexible terms that banks and traditional money lenders simply cannot match.

The company does not charge any fee to apply, so you don’t lose anything by trying this option. The process of getting approval is fast and you can get the extra funds in a matter of days. You can continue the partnership for as long as you wish and can request any amount of funding, provided you furnish proof that future sales can cover repayments.

Use Extra Capital as You Wish

Another benefit of merchant cash advance is that it comes with no strings attached. You can use the funding for any business-related activity. Perhaps you need to cover some urgent expenses or hire more employees. Liquor stores need steady capital flow because fresh products need to be added and inventory needs to be replenished to remain competitive in the market.

You may want to invest in a sophisticated security system because liquor stores are high-risk targets of robberies and other crimes. You may also want to use the funds for a marketing campaign to elevate your presence in the community.

Ready to give merchant cash advance a try? Let Cresthill Capital review your application and connect you with an appropriate funding source!

Tips to Get Best Possible Outcomes from an Alternative Business Financing Solution

Applying for working capital advance online from Cresthill Capital is a great way to get a bit more cash and cover costs for your small business. However, there are some common mistakes that clients make that prevent them from obtaining satisfactory outcomes. Read on to avoid those mistakes at all costs.

Understand All Working Capital Advanced Options

When it comes to accessing working capital advances, small businesses have a variety of options including short term business funding from banks and other traditional money lenders, lines of credit, merchant cash advance, invoice financing, and Small Business Administration funding. Crest Hill Capital LLC facilitates merchant cash advance.

In the merchant cash advance model, the lender provides a lump sum amount and the business owner commits to paying a portion of future receivables on agreed terms till the entire advance amount is repaid. Any of these funding solutions may be right for you, so research on every individual option and figure out the best solution for your needs and circumstances.

Shop Around For Best Deal

When you’ve decided to go for the merchant cash advance solution, take your time to shop around and find the best possible deal. Cresthill Capital works as a facilitator that matches eligible small business owners with appropriate funding sources and makes an offer for proposed financing. Once a client accepts an offer, funds are directly transferred into the client’s business bank account.

The advantages of partnering with this company are that they offer a cost-free application process, fast approval processing and competitive, flexible terms. As part of your research, read Cresthill Capital reviews and see what customers have to say about their services.

Figure Out Your Exact Capital Needs

Crest Hill Capital LLC does not look into credit scores to evaluate the creditworthiness of a client. Some small business owners are tempted to request for working capital advances in excess of their needs. Later on, they may have trouble affording repayments. It’s best to remember that the merchant cash advance will need to be repaid via future receivables.

Small business owners should figure out what they will do with the working capital advance and only request the amount that is absolutely necessary. The additional capital could be used for anything such as hiring new staff, buying new inventory, etc. but it’s important to know the exact amount you will need.

Gather Business Information Beforehand

Cresthill Capital advisors are among the most competent in the industry and can facilitate fast approvals. However, business owners also have to do their part. For a merchant cash advance, businesses need to prove consistent past and current revenues by showing supporting documents.

Before you apply for a working capital advance online, make sure your business’s finances are in order and you have necessary information such as business plan, cash flows and financial statements at your fingertips.

Follow the above working capital advance tips and get the funding your business needs to cover costs and thrive!

Don’t Fret Over a Bad Credit Score – Partner Crest Hill Capital LLC for Swift Cash Advance

A bad credit rating is a serious threat to any business, especially a small business, and maybe a roadblock in securing a business cash advance. So, how is a small business that needs additional working capital supposed to maintain business operations or make plans for business growth?

Luckily, there are companies like Cresthill Capital that provide merchant cash advance for businesses, even those with poor credit scores.

Funding Problems of Small Business Owners

A small business owner needs to invest to maintain business quality and enhance services. Financial liquidity is essential to ensure smooth business operations. Besides, there are various activities such as hiring additional employees, purchasing new equipment, upgrading old equipment, increasing inventory and implementing advertising projects that require additional funding over and above current cash advance.

However, approaching a bank or money lender for finance is not easy if you have a poor credit rating. The good news is that traditional banks aren’t the only option to overcome the working capital shortage.

How Does Merchant Cash Advance Work?

Cresthill Capital offers merchant cash advance to businesses that meet their eligibility criteria. Their eligibility criteria are quite simple and straightforward.

They assess businesses in past and present business revenues and not credit scores. After reviewing documentation and business information, they match business owners with an appropriate funder.

If the business owner accepts an offer, funds are transferred directly to the client’s business account without any hold-ups. In exchange, the business owner remits a certain percentage of future receivables to the funder.

Innumerable Ways to Utilize Funds

A merchant cash advance is a perfect solution for small businesses to bridge the gap of working capital. The possibilities to use a merchant cash advance are varied, depending on the specific services provided by a business.

Business owners can use the additional funding to fulfill inventory orders, add new inventory, meet seasonal demand, invest in new technologies, undertake equipment repairs, pay for business premises renovation, execute an advertising or marketing campaign, have cash for payroll and meet other short term expenses.

Check Reviews before Committing

When you’re looking to partner a company for additional funding, it’s very important to check their reputation before making a decision. A good idea is to research Cresthill Capital reviews online and see what people are saying about their solutions and customer service. This New York-based company is appreciated for its fast cash advance approval, flexible terms, competitive offers and zero cost to apply policy.

It serves business owners in different industries including automotive, retail, restaurants, medical/ healthcare, and services. However, it does not offer to fund to start-ups. 

If merchant cash advance seems like a good solution to you, start researching Cresthill Capital reviews - it’s the first step to watching your business flourish!

Partner Cresthill Capital to Fund Your Ambitious Small Business Development Activities

As a small business owner, do you have ambitious plans for business development? Getting funding from banks and traditional lenders are not going to be an easy task. That’s where a working capital funding company like Cresthill Capital can be very helpful. It opens up doors for quick, flexible and competitive financing, giving you what you need to get your business development plans off the ground.

Challenges to Obtaining Quick Funding

There are numerous occasions when small businesses need additional working capital, over and above current cash advance, for various activities such as running day-to-day operations, increasing inventory, executing an advertising strategy, etc.

Traditional sources of funding such as banks and money lenders take into consideration credit score to determine eligibility. They are averse to high-risk industries and often ask for collateral while considering a funding request. They also have time-consuming processes for approvals which are not in the best interests of a small business looking for quick finance solutions.

Funding With Low Credit Score

The above challenges do not mean that small business does not have financing solutions. Crest Hill Capital LLC is a unique company that helps small business owners find funding. The company offers no-hassle, flexible funding solutions to qualified businesses.

It does not consider credit score as an important criterion to approve working capital funding. Instead, it considers past and current business revenue to determine eligibility. As long as your sales are strong, a bad credit score will not disqualify you from applying for capital funding from this company.

Swift and Efficient Approvals Process

Small businesses belonging to various industries have partnered Cresthill Capital for merchant cash advance needs. Upon approval of eligibility with necessary information and documentation, the company matches clients with appropriate funding sources and makes an offer for proposed funding. Once the client accepts the offer, the funds are transferred to the client’s business bank account.

In exchange, the client commits to delivering a part of future revenues to the funder. Business owners are free to use funds for anything pertaining to business including bridging cash flow gaps, purchasing inventory, repairing equipment, executing business development plans, etc.

Evaluate Reputation before Making Decision

Customer service is an important factor to keep in mind while choosing a funding partner. It’s important to compare the level of customer service offered by different funding providers to make the best choice. How a company handles a complaint is an indicator of customer service and reliability.

For peace of mind, check Cresthill Capital complaints online before making a decision. The company is renowned for fast approvals and offers many other attractive solutions such as no-cost applications, competitive pricing and flexible terms that are some of the best in the industry.

Once you’re satisfied with your research on Cresthill Capital complaints, take the next step and apply for a merchant cash advance!