About Portland

Portland, Oregon, is a beautiful oasis in the middle of the Pacific Northwest nestled between the Cascade Mountains and the Columbia River. With a population of over 500,000, it boasts a thriving tech community, a foodies’ paradise and an active arts scene.

The city is also home to numerous alternative lenders that cater to local borrowers with unique financing needs. 

Portland offers an array of resources for entrepreneurs. The city’s vibrant community of entrepreneurs and innovators helps drive its economy by creating jobs and new ideas and helping drive the local economy. 

Portland based alternative lenders work to meet small businesses’ financing needs by providing loans from $10,000 to $500 million, covering real estate acquisition and construction loans, equipment purchases, working capital loans for expansion and growth and other debt solutions.

Definition of Alternative Lending

Alternative lending refers to a variety of financing options that are not typically available through traditional banking channels. These products include payday loans, auto loans and small business loans.

Some consumers prefer alternative lenders for their flexible terms and rates compared to traditional lenders. These consumers may need help to obtain a loan from a traditional bank due to credit limits or other restrictions.

Consumers are looking for alternatives to traditional banking when they want better terms and more flexibility.

Portland alternative lending is growing in popularity as banks continue to tighten their lending criteria. 

Types of Alternative Lending Available in Portland

There are a number of different types of alternative lending available in Portland. Here is a list of some popular options: 

• Merchant Cash Advances

Merchant cash advances (MCAs) are an increasingly popular alternative form of business financing that can provide businesses with the cash they need to help cover unexpected or short-term expenses. It works by allowing a business to receive a lump sum of cash in exchange for an agreed-upon percentage of future sales. This form of financing is tailored for small businesses with static or predictable revenue streams, and is quickly becoming an attractive option for many entrepreneurs and business owners looking for quick capital solutions. As MCAs become more widely available, it is a great option to consider when facing short-term financial needs within your business.

The merchant cash advance is a form of capital that is especially well suited for businesses whose primary method of payment acceptance is through credit cards. This particular type of lending agreement offers many advantages to both the lender and the recipient, as it provides the business with quick access to funds while also allowing the lender to recoup their outlay over time based on the amount of sales generated. For example, after an agreed-upon percentage and fee are fixed at the time of advance, repayments will fluctuate based on daily or weekly credit card sales, offering flexibility a conventional loan cannot provide.

Merchant cash advances can be a great way for businesses that have a steady stream of credit card sales but need quick financing. However, it is important to note that MCAs usually have higher interest rates and fees than traditional bank loans, so it is essential to thoroughly assess the conditions of the MCA and its impact on your business’ liquidity before applying. Business owners should also ensure they will be able to adhere to the required daily or weekly payments, and evaluate how this might affect their financial security. If you are in search of alternate ways of financing, a mountain valley franchise consultant can provide advice on various options available, including MCAs; helping you discover which one suits your needs best.

• Invoice Factoring

Alternative lending options can be a useful source of non-dilutive funding for businesses in need of cash. Invoice factoring is commonly available to small businesses and startups, as it allows them to access capital without requiring substantial upfront investment or collateral. However, choosing the right type of alternative loan is important as each option has unique features and benefits. 

• Direct Lending

Direct lending is a type of alternative lending that allows borrowers to borrow money from a lender without having to go through a bank or other financial institution. It is popular in the United States because it allows direct, easy access to loans for various purposes, including home improvement, car purchases and education expenses. Borrowers can benefit from direct lending in a variety of ways, including by taking advantage of lower interest rates, flexible repayment options and no application fees. Direct lending can be an effective way of managing financial risk while achieving a financial goal. outputs

Advantages of Alternative Lending in Portland

There are many advantages to using alternative lenders, including the following: 

• Fast access to capital

Alternative lending can help people access capital that is not available through traditional lenders. This fast and convenient form of lending allows for the flexible use of funds such as for business purposes, real estate purchases, or personal loans. Alternative lenders offer loans for a variety of purposes, such as small business loans, home improvement loans and student loans. They tend to be more flexible in their lending policies and criteria than traditional banks, making them a popular choice for people with unique financial needs. Despite the rapid growth of alternative lending over the last decade, it remains a niche market with limited availability of financing options for many individuals and businesses.

• Flexible repayment terms

Alternative lending provides borrowers with more flexible repayment terms than traditional lenders allowing them to take care of their own financial needs while still having access to affordable financing. It is vital for individuals who have trouble meeting the traditional loan repayment requirements of debt consolidation or monthly payments. Alternative lenders typically offer lower interest rates and longer repayment terms than traditional banks, making them a wise choice for those looking for financial flexibility.

• Potential for lower interest rates

Alternative lending in Portland offers borrowers a number of advantages over traditional forms of borrowing. One of the most significant is the potential for lower interest rates, making it easier to afford monthly payments and reducing the overall cost of a loan. Another advantage is the ability to borrow money for longer periods which can be useful if you need to make larger payments or if you are seeking financial flexibility.

Disadvantages of Alternative lending in Portland

Some disadvantages to using alternative lenders should be considered before making a decision. Here are the most common:

• Higher risk for lenders

Lenders in alternative lending often charge high-interest rates and require high credit scores, so borrowers must be aware of the risks before signing up for a loan. Before signing up for a loan, borrowers should research their options, from conventional loans to peer to peer lending. Not all lenders are created equal, so it is important to do some research to find a lender that fits your needs and financial situation.

Customers should also be aware of the different types of loans available, such as student loans, small business loans, and mortgages. When choosing a loan, consider factors such as interest rates and fees and any required documentation or application processes. If you are looking for a loan but need help finding one that meets your needs, consider using a peer to peer lending service like Lending Club or Prosper. These services enable you to directly connect with investors who are willing to lend money at low interest rates and without requiring extensive documentation or an application process.

• Limited borrower options

Alternative lending is less common in Portland than in other major cities, limiting the range of loan options available to borrowers. In addition, alternative lenders may have stricter lending criteria than traditional lenders, which can make it difficult to find a good loan product that suits your needs. They also tend to be more expensive compared to traditional lenders, making it harder for borrowers to find a good financial solution. Alternative lenders may need more experience working with diverse loan products and funding sources, which can lead to inappropriate or over priced loans.

•  Potentially higher fees

The best thing about alternative lending is that it can be a beneficial option for those who may need help to get approved for traditional loans. However, alternative lending can also be more expensive than traditional loans with potentially higher fees. This can make it more challenging for borrowers to afford the payments. Alternative lending has also some disadvantages such as the risk of fraud. That is why it is important to do thorough research before deciding which type of loan would be best for you.

Why Choose Mountain Valley Consulting Group for Portland Alternative Lending

Alternative lending can be a good option for both large and small businesses in Portland seeking fast access to capital but it is also important to consider the potential drawbacks carefully.

An experienced advisor from Mountain Valley Consulting Group can help determine which alternative loan option works best for your company and business needs and guide you through the process. 

If you still need to decide which loan option is right for your business, reach out to us for a free consultation and education session.