CHARLESTON, S.C., Oct. 27, 2015 /PRNewswire/ -- SnapCap today released data that reveals what type of business owners are turning to online business loans to serve their short-term capital needs. The data, based on a sample of nearly 14,000 online applications from January through June 2015, provides a "SnapShot," showing how alternative lending is filling a major void in the small business lending sphere, as well as attracting businesses that qualify for traditional loans.

"Given their current lending requirements and processing cycles, banks are not keeping pace with the latest shifts in the economy and the way small businesses operate today," said Hunter Stunzi, president of SnapCap, a leading provider of online business loans. "Small businesses are demanding a more efficient, fast and streamlined process for borrowing short-term capital, and alternative lenders are emerging as the preferred option."

Alternative lending currently assists an underserved market of highly qualified borrowers, namely home/web-based businesses. Online retailers, who generally do not qualify for traditional bank loans, comprise the third-highest business category applying for loans, and home-based businesses represent 45 percent of SnapCap's loan applications. This data demonstrates how alternative lending is serving a large need and will likely continue to grow as a reliable resource for small business loans.

In addition to meeting an underserved market, alternative lenders attracts small businesses that qualify for traditional bank loans, but prefer to avoid the arduous process involved with obtaining one. Almost half of SnapCap's applications come from businesses at least two years or older, the minimum requirement for traditional bank loans.

Alternative lending is more efficient and requires less paperwork than traditional bank loans. SnapCap provides loans within 24 to 48 hours, whereas traditional banks can take up to 90 days. "After experiencing SnapCap's timeliness and professionalism, I can easily see it leading this growing and necessary field," said Mara Stefan of Emerge Public Relations, a SnapCap customer who obtained a loan to address a short-term cash flow need.

Alternative lenders are also building relationships with their borrowers, with almost 40% of SnapCap's existing eligible clientele taking subsequent loans. "I like that SnapCap emphasized that they wanted to create a long-term relationship," said Sierra Fletcher, who obtained a loan for her business Jump on the School Bus. "As we build trust, new or future loans will be less expensive. With a business model focused on personalization and rewarding good customers, SnapCap's doing lending right." 

About SnapCap
SnapCap is a web-based company that is helping lead a revolution in small business finance by reducing the complexities found in the traditional lending process. Committed to investing in small business, SnapCap offers a better way to borrow by focusing on performance-based financing, which evaluates the health of a business, not just the business owner's credit score. Personal service combined with real-time evaluation technology makes it easier to provide financing solutions with greater speed and accuracy. A single-source lender, SnapCap processes and funds most loans in less than 48 hours. For more information, visit www.snapcap.com.

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SOURCE SnapCap

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