Alternative finance is a lending service outside of the traditional banking system. Here, borrowers and lenders connect directly and bypass the red tape that entails a federal financial structure. And here’s why we are telling you about it. Being an adult means living in debt and having more financial obligations than you can handle. Kidding! Not really. Before you start making $120K a year, and can afford your own personal financial adviser, we can help you figure out when alternative financing is useful for you. So read up, and thank us later. Here are 10 instances when alternative financing is a better option than going the traditional route.
Starting a Small Business: Traditional lenders are less equipped to mold to your specific business requirements. First, banks look for businesses seeking loans for a substantial amount, as a larger loan will enable them to make a larger profit. Second, as a borrower you are required to raise approximately 20 percent of the capital that you need, and produce collateral for the remaining 80 percent to the bank. And lastly, since the economic downturn, the cuts in funding opportunities have made it difficult for small businesses to get the capital they need from traditional sources. Nearly 7 out of 10 businesses get turned down when they go to the bank for a loan. At such times, the flexibility and accessibility of alternative lending can be your best avenue for capital. The process is quick and easy, and the capital as well as the payment plan can be tailored as per your business needs.
Credit Card Debt: Credit card debt has the potential to hurt your credit rating. The amount of credit you owe is one of the top factors that affects your credit score. So, when faced with increasing credit card debt, you will want to clear it off as quickly as possible. You are likely to come up against a brick and mortar wall (pun intended) when you reach out to the banks. As your credit score nosedives, so do your chances of getting a bank loan in the future. Through alternative financing, you can clear your high interest credit card debt with a single loan at a relatively lower interest rate, and not have a negative impact on your credit rating.
Business Expansion: If you have a thriving business like a cool pets hotel in Brooklyn, an artisanal mayonnaise spot, or a fashion label that’s becoming a trendsetter and wish to capitalize on its success, alternative financing would be a good way to go. You can focus on your expansion plans rather than drawing up paperwork for a traditional bank loan, and make good on precious time. The position of your business will help you get quick and competitive interest rates, and lending sites like LendingClub, Prosper, Kabbage, and Dealstruck are some of the options. In business, like most things in life, time is of essence.
Moving /Relocation: How well is the traditional financial system in the U.S. equipped to facilitate your desire to move to a different place in search of better opportunities? Not very. But that still leaves you in need of capital to cover moving expenses like shipping costs, security deposits and new furniture buys. Apart from the long wait, there is the chance that you will be rejected for a bank loan. So save yourself the time, trouble and heartbreak, and explore smart alternative financing options like marketplace lending.
Medical Emergencies: Emergencies happen, it’s part of life and it’s stressful. What doesn’t need to be stressful is dealing with the aftermath. Medical bills, doctor's visits, and prescriptions all start to add up and not everyone has the luxury of an emergency fund. You can take out a marketplace lending loan to cover these costs and help you get to a better tomorrow.
Maintenance/ Repairs: In case of repairs, be it home, vehicle or equipment, you’ll want to fix it before it goes completely bust. The average costs for such tasks can range anywhere from $10,000 to $50,000, depending on the type of repair. But when you request for a loan, banks are likely to say, ‘don’t fix it if isn’t broken.’ Now when this happens, you know where to go.
Equipment: Sometimes, all you need is a few thousand dollars to buy materials for your online jewelry store, high-end baking ovens for your bakery or a bunch of computers to start or strengthen your small but growing business – be it fashion, tailoring, catering or coding. In such instances, the flexibility of alternative financing companies like Fundera and OnDeck will lend well to your needs. You can get quick loans that will cover 100 percent of equipment value and with considerably less paperwork.
Child Care Cost: Starting a family is a delightful experience, but it comes with its share of financial responsibilities. The ever-increasing day care premiums that can range anywhere from $4,000 to $15,000 a year, can be overwhelming if you haven’t put money aside for it. As federal financing grapples to find a way to deal with this situation, you can resort to alternative financing for a solution. Through websites like Karrot you can apply for loans up to $35,000. It’s a simple three-step online application, which will take no more than a few minutes. Your application will be reviewed instantly, and if approved, you can have your money in a day’s time!
Your Big Idea!: Have a creative idea like building a virtual digital museum or something more altruistic like installing a community refrigerator to help alleviate hunger? Then crowdfunding websites like Kickstarter and Indiegogo is the place for you. Here, you can pitch your ideas through an online campaign and connect with a community of likeminded individuals who will not only encourage, but also fund your ideas. That’s more than any bank is going to do for you.
Wedding: This is definitely an expense and you’re not likely to get any return on your investment - not the monetary kind at least. Weddings are a lifetime event, a red-letter day in the calendar of your life, but for many a dream wedding hasn’t always been attainable due to budget restrictions. However, now you can always explore alternative financing options for those extra dollars to fund your nuptial through low interest wedding loans. Another option is crowdfunding. Some couples have launched online campaigns to help raise money for their big day, asking family and friends to donate towards their honeymoon in lieu of gifts.
Disclaimer: The material provided on this site is not intended to provide legal, investment, or financial advice or to indicate the suitability of any Engine by MoneyLion product or service to your unique circumstances. For specific advice about your unique circumstances, you may wish to consult a qualified professional. Any information or statistical data sourced by Engine by MoneyLion through hyperlinks, from third-party websites, are provided for informational purposes only. While Engine by MoneyLion finds these sources to be accurate, it does not endorse or guarantee any third-party content.
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MoneyLion’s consumer and enterprise businesses were recognized as winners of Benzinga’s 2022 Global Fintech Awards at this year’s Fintech Deal Day
New York, December 14, 2022-- MoneyLion Inc. (“MoneyLion”) (NYSE: ML), the go-to destination for personalized financial content, products and advice, is proud to announce that it has been named “Best Financial Literacy Tool” at Benzinga’s 2022 Global Fintech Awards. MoneyLion’s enterprise business, Even Financial, was also named as the winner for “Best API.”
MoneyLion and Even Financial were honored alongside other top Fintechs, banks, research companies and more. MoneyLion’s consumer business continues to push financial literacy through innovative and personalized content. With the MoneyLion app, users can view personalized financial content in short-form video format and receive personalized financial product recommendations such as loans, insurance and investing. As MoneyLion’s enterprise offering, Even Financial digitally connects and matches consumers with real-time personalized product recommendations from banks, insurance carriers, and Fintech companies on mobile apps, websites and other digital touchpoints through its financial product search engine and Embedded Finance Marketplace technology. This technology powers both the MoneyLion Marketplace, in the MoneyLion app, as well as more than 1,000 enterprise partners.
“We’re thrilled MoneyLion’s consumer and enterprise businesses were recognized by Benzinga,” said Dee Choubey, Co-Founder and CEO of MoneyLion. “Both awards showcase MoneyLion’s every time you money approach to helping our customers. The financial literacy gap is a huge problem for millions of Americans and we remain committed to reducing its effects through engaging, informative content and key partnerships designed to bring an elevated educational experience to all.”
These awards follow the October announcement of MoneyLion University, where MoneyLion launched its latest initiative aimed at closing the gap in money and financial education across the United States.
“We could not be more pleased with Benzinga’s recognition of our company’s API technology,” stated Phill Rosen, CEO and Founder of Even Financial. “Our technology natively integrates real-time credit decisions and product recommendations from the industry’s largest network of connected financial services providers, offering access and choice to consumers searching for financial products. Our elegant Embedded Finance Marketplace, API and search engine enable any company to add trusted, personalized financial products and services to their business, reaching people when and where they need it.”
Even Financial has been named a listmaker for the Benzinga Global Fintech Awards for the last two years and was a previous award winner. In 2021, Even was selected as a listmaker for Best API and, in 2020, selected as a listmaker for both Best API and Best API Platform. In 2019, Even was awarded the Benzinga Rocky Award.
The annual Benzinga Global Fintech Awards take pride in recognizing and honoring the companies and individuals who are propelling the Fintech and financial services industry forward with the most impressive technology advancements and innovations. A panel of industry experts from a wide range of companies reviewed and judged the nominations. Winners were announced at Benzinga’s Fintech Deal Day on December 8, 2022, where MoneyLion’s Chief Customer Officer Cynthia Kleinbaum spoke on the panel, Expert Growth Hacks For Reaching Underserved Markets.
About MoneyLion MoneyLion is the go-to destination for personalized financial content, products and advice. MoneyLion’s mission is to rewire the financial system to positively change the path of every hard-working American. MoneyLion uses its proprietary data advantage and technology to empower its customers. MoneyLion engages and educates its customers with daily, hyper-personalized money-related and money-adjacent content that is delivered through each customer’s own content feed. MoneyLion provides its customers a full suite of financial and non-financial solutions, bundling its proprietary, low-cost financial products with products that are offered through its marketplace technology and network affiliate partners. MoneyLion also leverages its distinct data, technology, and network advantages to deliver leading embedded finance and marketplace solutions for enterprise customers. Since its founding in 2013, MoneyLion has empowered millions of Americans to take control of their finances and live their best financial life, every day.
For more information about the company, visit https://www.moneylion.com/ and https://www.evenfinancial.com. For investor information and updates, visit investors.moneylion.com and follow @MoneyLionIR on Twitter.
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New York, Jan. 11, 2023 -- Even Financial ("Even"), an independent subsidiary of MoneyLion Inc. (NYSE: ML), and a leading embedded finance marketplace platform, is proud to announce that it was honored in Built In’s “2023 Best Places To Work” Awards. Specifically, Even earned a place on the Hybrid Best Places to Work in New York.
The Best Places to Work Awards, now in its fifth year, honors companies across numerous categories, sizes, remote-first employers as well as in person and hybrid working companies across the U.S.
Built In determines the winners of Best Places to Work based on an algorithm, using company data about compensation and benefits, and also weighs criteria like remote and flexible work opportunities, as well as other people-first cultural offerings.
This announcement follows Even’s recent win at the Benzinga Global Fintech Awards for “Best API.”
About Even Financial
Even is the industry-leading embedded financial marketplace and independent subsidiary of MoneyLion Inc. (“MoneyLion”) (NYSE: ML). MoneyLion is a leading digital financial services and lifestyle content platform serving both consumer and enterprise customers. As part of MoneyLion’s enterprise offering, Even digitally connects and matches consumers with real-time, personalized financial product recommendations from banks, insurance carriers, and fintech companies on mobile apps, websites, and other digital touchpoints through its marketplace technology. Even's infrastructure leverages machine learning and advanced data science to solve a significant pain point in financial services customer acquisition, seamlessly bridging financial services providers (such as SoFi) and channel partners (such as TransUnion) via its industry-leading API and embedded finance marketplaces. Even enables any company to add financial products to its business, with full compliance and security at scale. Even was named one of "America's Best Startup Employers'' by Forbes for 2022 and was named to the 2021 Deloitte Technology Fast 500, which recognizes the fastest growing tech companies in the world. Learn more at www.evenfinancial.com and investors.moneylion.com.