HOW TO NAVIGATE ALTERNATIVE LENDING OPTIONS

Alt lending options
 

You’ve been told, “You can’t do this, you can’t do that.” Well, your credit union exists for a reason. It has Loan Origination Software (LOS), so you have plenty of alternative lending options when you’re looking for funds for your business.

Alternative Lending Sources

To understand alternative lending sources, let’s review what Sync1 Systems provides. To start, alternative lending is carried out by what the industry calls nonbanks. What your credit union does is help you start the process and get the loan approved for you from outside of the traditional banking space.

Look at your scenario. You know there are a lot of factors that go into securing financing. Maybe your credit score or length of time in business prohibits you from getting a traditional loan at a traditional bank. However, your credit union can take advantage of these borrowing options:

  • Home Equity or HELOC - You can opt to use the equity in your home to open or grow your business. This is an attractive option due to reasonable interest rates.

  • Online loans - These loans often come without restrictions for a weak credit score, your relatively young or new business, and annual income. Drawback? You may receive a higher interest rate.

  • Term loans – a.k.a. Installment loan. This loan is repaid, with variable or fixed interest, over a specified period (12, 24, months etc...)

  • Microloans - provides a lump sum that the borrower pays back with interest via regular payments over a set period of time (think Kiva).

  • Crowdfunding - Financial institutions, including GoFundMe, which enables members to donate to different projects and causes. This could be a strong source of funding.

Sync1 Systems streamlines your loan process

As a CUSO (Credit Union Service Organization), we are specifically designed to shoulder the responsibility and regulations all the way up to NCUA. We do that through our 1Lending platform.

Three important details about the 1Lending platform to know - it’s an:

  • All-in-one LOS system for easy installation and maintenance

  • An enterprise solution that addresses the unique needs of your credit union

  • A module system for loan origination, servicing, underwriting, and collection, among others

Who Is Sync1 Systems?

Sync1 Systems is a Credit Union Service Organization (CUSO) that was formed by credit union executives in 2017 to help other credit unions expand services and foster growth away from predatory, for-profit banks. Therefore, when you approach your members with an LOS service, you can assure them that they can expect to receive the same level of personalized service and dedication you provide.

Let’s get you set up with an LOS. Talk to us!

(https://www.sync1systems.com/contact-us)

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