AVI Business Solutions

  In recent years, the financial landscape has significantly transformed, with non-bank lenders emerging as formidable competitors to traditional banks . The median quarterly loan inflow gap between banks and non-banks has narrowed considerably over the past three quarters, signaling a shift in how businesses and individuals access credit. This trend, supported by cash flow data and corroborated by the Federal Reserve's Senior Loan Officer Opinion Survey (SLOOS), highlights a contraction in bank lending. At the same time, non-bank lenders maintain a steadier inflow. This article explores the factors driving this convergence, the implications for borrowers, and the future of both bank and non-bank lending. Understanding the Loan Landscape Banks have long been the cornerstone of lending, offering many loan products, from small business loans to mortgages. Their established infrastructure, regulatory oversight, and access to deposit-based funding have historically given them an edge i...

  Non-bank lenders have become a vital resource for businesses and individuals seeking flexible, accessible financing solutions. Unlike traditional banks, non-bank lenders often offer a variety of loan types tailored to specific needs, with faster approval processes and less stringent requirements. This article delves into the different types of loans provided by non-bank lenders, including term loans, lines of credit, asset-based loans, invoice factoring, merchant cash advances, microloans, and equipment financing. Understanding these options can empower borrowers to make informed financial decisions. Term Loans Term loans are one of the most straightforward financing options non-bank lenders offer. These loans provide a lump sum of capital that borrowers repay over a fixed period, typically one to five years, with regular monthly payments. Non-bank term loans are often used for significant expenses, such as business expansion, purchasing inventory, or covering operational costs...