Context Business Lending: What It Is and How It Can Benefit Your Business in 2022
Could you use Context to predict which of your leads would convert the highest? Imagine being able to tell which of your leads have the best chance of closing and which have less than a 1% chance of doing so.
Context business lending allows you to do all that and more, making it a potent tool in your sales team’s arsenal. Keep reading this article to learn more about what context business lending is, how it works, and how it can help your business grow.
What is Context Business Lending?
Context business lending is an alternative to traditional bank loans that allow entrepreneurs to borrow money for their businesses.
The process is much faster, requires less paperwork, and allows you to borrow money at a lower interest rate than a traditional loan.
In contrast to traditional banks, context lenders offer these benefits because they don’t take on any risk by giving you your capital back. Instead, they provide the necessary capital upfront through selling bonds on credit markets or investing directly in small businesses.
The different types of debt:
There are several types of debt that you can use to finance your business. Here are a few examples:
● Credit Cards – This type of debt is usually issued by a company like Visa, Mastercard, or American Express. They allow you to make purchases with the credit line that was extended to you. The main benefit of this type of debt is that it’s easy for people who don’t have excellent credit scores to get approved for these lines of credit.
● Mortgages – If you own property, then chances are good that you have one of these loans. Mortgages allow people to buy homes or commercial property (such as an office building) and spread out their payments over many years with a fixed interest rate. While homeowners may be able to deduct some of their mortgage payments from income taxes each year, owners of investment properties generally cannot take deductions for mortgages.
● Lines of Credit – These revolving lines of credit allow businesses to borrow money when needed without having to provide collateral. The interest rates on these loans tend to be lower than those charged by banks but higher than what you would pay with a credit card. Lines of credit are available for small businesses through many sources, such as community banks and peer-to-peer lending sites.
● Factoring – With factoring, a third party agrees to accept your invoices at face value and then pays you immediately upon receipt. In return, they will keep a percentage of your sales as payment for the service. You can also negotiate an amount upfront that will be held back until all of your invoices are paid off. For example, if you were expecting $200K worth of revenue and had agreed to a 10% commission on that $200K worth of revenue, then $20K would go into escrow before any work begins. Once all the invoices are collected, the escrow account will be released, and $20K will go to the financing company instead of your client.
The Benefits of Context Business Lending
Context business lending is a form of alternative financing, which is a form of financing for businesses that do not qualify for traditional loans.
Unlike other financing forms, context-based lending relies on the data collected from the Context to decide whether or not to approve the loan request. This data can be anything from personal credit scores to social media activity.
The loans are then broken up into three categories:
● Short-term: Short-term loans are between $1,000-$5,000 with repayment periods of one to four months.
● Mid-term: Mid-terms are typically $5,000-$50,000, with repayment periods ranging from six months to two years
● Long-term loans: Long terms offer more than $50,000 with repayment periods ranging between two and five years.
While it may seem like there is no way you could be approved if your credit score is lower than average, this type of debt looks at more than just your financial stability. Lenders will evaluate how well you connect with customers and potential clients by looking at factors such as your social media presence (often Facebook).
How Context Business Lending Can Help Your Business in 2022
In the future, Context business lending will be a part of everyday life. One of the main advantages of this type of lending is that it is tailored to your company’s needs. You will need to fill out a few forms, submit proof of your identity, and be approved for as much money as you need, up to $150,000.
There won’t be any interest rates to worry about because you can make your monthly payments as affordable or affordable-er as they would be on an unsecured loan from a traditional lender.
You will only have to pay back the principal amount, as there won’t be any hidden fees or penalties for missed payments.
As you can see, Context Business Lending is a great way to get funding for your business when you cannot get a loan from banks. With the help of Context, you can start or grow your business. For example, you could use it to invest in new technology that would improve your business efficiency or expand your current office space so that you can hire more people. There are also many different types of loans available through Context, so it is easy to find one that suits your needs best.