Specialty Finance can be defined as financing activity that occurs outside of the traditional banking system.
Mainstream banking institutions have become burdened by their lack of flexibility.
Typically, Specialty Finance Firms are non-bank lenders that make loans to consumers and small to mid-size businesses that may otherwise have difficulty obtaining financing.
Businesses such as retail point-of-sale consumer installment lending, auto lending, payroll deduction loans, small ticket equipment lending and leasing, accounts receivable factoring, trade finance, merchant cash advances, supply chain finance and asset-based lending each fall into this category.
Specialty Finance Firms are typically much easier to work with than traditional banks.
Unlike traditional banks, Specialty Finance Firms tend to rely on their own due diligence of the business opportunity rather than ensuring that a borrower fits into the traditionally defined “credit format” of which many larger financial institutions mostly rely.
Alternative Finance is sometimes called Specialty Financing And Alternative Funding. This type of funding refers to forms of financing that have remained outside of the traditional institutional financial system of capital markets. Alternative Finance is also known as the receiving of needed funds outside of the traditional banking system’s loan process. Alternative Finance gives a […]
Alternative Finance refers to non-traditional ways to finance and deliver development outcomes from private or public sources. Alternative/Specialty Finance can be defined as financing activity that occurs outside of the traditional banking system. Alternative/Specialty Finance companies typically make loans to consumers or businesses that are underserved by traditional banking institutions. Specialty Finance Firms are typically much easier to work with than traditional banks. Specialty Finance Lending provides capital power and flexibility to fuel a clients’ financial growth.