The earliest banks can be traced back to Roman temples. Home to devout and honest monks, temples were thought to have an added level of security (1).

Today, modern banks have much higher security measures in place—a far cry from holy sanction. When it comes to securing business loans, most founders would agree that banks are anything but holy.

In most cases, new business owners can't always access the funding that they need to be able to scale and invest in activities to grow their businesses. Creating superb branding, investing in cutting-edge campaigns, and paying top-notch suppliers aren’t cheap initiatives.

Most banks require business owners to take on more debt than they can afford. Repayment agreements are often too expensive for a new business, and banks tend to tack on many hidden fees. Commonly overlooked fees include overdraft, interest, application, prepayment, late payment, administration, and insurance costs. 

Bank loans can come with some pretty stringent application requirements, too. Sometimes founders are required to make a personal guarantee so that you are financially responsible for any debt. In other cases, you might be required to offer assets as collateral, or pay upfront for a  credit history check.
Run into some of these funding issues before? There is a better way, my friend.

What is non-bank lending?

Non-bank lending is a form of alternative lending. Over the past decade, it's largely shifted online. Online loans tend to be more flexible and can come unsecured, meaning you don’t have to put down assets or sign a personal guarantee. Depending on your lender, you may be required to give up equity in your business or sign a legally binding document.

The pros and cons of online lending platforms