Hey, everyone. Oz Konar here with Business Lending Blueprint. In today’s video, I want to talk about a recent article of mine that got published by nasdaq.com, and we’ll talk about why that is so important for you. In this video, I’m going to cover the feature of alternative lending industry. We’re in 2021, and we’re going to take a peek at what will happen in the next couple of years and why that’s a game-changer and I’ll back up all of my claims with data, as I did on that article that I published on nasdaq.com, so if you stay tuned until the end, you’re going to know a lot about this industry.
Obviously, if you’ve been following my channel, you know that we represent the largest network of business loan brokers in the alternative lending industry. We have the largest and the most results-driven training platform. That’s why I frequently publish articles and I’ve been quoted by Entrepreneur Magazine and Forbes Magazine and Thrive Global, and now my full article is published on nasdaq.com, so I believe this is really, really important for you to understand what is alternative lending, why it has been growing beyond imagination, and even growing faster than some of the more popular investment tools, such as real estate or stock market, even some of the cryptocurrencies that people talk about, so if you’re ready, let’s just dive right into it and talk about this.
Alternative lending industry
All right, so alternative lending industry, so some of you might not have even know what that means, so let me just take you back to a little history of this industry. Alternative lending has been in existence for a long, long time, but the current definition took shape after the 2008 recession. Alternative lending is any type of lending that’s non-bank lending, right, so traditionally when, if somebody, a company needs money, they just go through their banks, right? I mean, even big banks back in the day used to loan money to US governments, and that’s the tradition, like if anyone needs money, they go through these big banks, but that has been changing, especially the unexpected turnaround, the 2018 recession led big banks to restrict their funding criteria.
What’s their highest risk?
In their eyes, the highest risk is letting small businesses get access to capital, so that created an avalanche of demand for funding. Since it has been restricted by these large banks, these small businesses, by “small,” I’m talking about zero to five to $10 million in revenue, your mom-and-pop businesses, pretty much, they need access to capital, and unlike big banks, large corporations, their funding needs are not in millions. A small business doesn’t really need two, three, four, five million. Sometimes they need like 50,000, 25,000, $100,000, and that gave birth to the boost of the alternative lending industry, and that industry is supported by private investors, sometimes private banks, and people who have access to capital, and they want to earn some interest on their money, right? That’s what alternative lending industry is.
Well, just because you have the investors doesn’t mean that everything’s going to work properly. Then you need brokers who’s going to get it in front of the business owners and introduce this relatively new form of lending, so that’s been happening since 2008. For anyone who’s been following me for the past couple of years, I keep talking about the massive increase, exponential growth, and the size of this industry, and exponential growth on the demand, right? If you understand a little bit about supply-and-demand cycle, well, when there is demand for something, supply needs to come in and supply that demand, so what’s happening in alternative lending industry is demand has been growing crazy in crazy increments.
Four years ago
Currently, when I first started, and if you go back and watch any of my videos from three, four years ago, I said that this is a $300 billion industry. Fast forward today, according to a Business Insider article, which I’m going to be posting all the links below this video, now the demand is over $5 trillion, and supply, although money is there, the businesses are not informed enough to take advantage of that capital, right, so businesses need capital, but when you just go out there and talk to business owners and ask them how they would get capital, how they would get working capital, loans, and funding for their businesses, what source would they go through, a lot of will tell you that would just go to their banks, unless they have really wealthy friends and family who can just loan them money, right? Most people don’t, so this is a way for business loan brokers to capitalize on this and have access to trillions of dollars of capital and channel it to the parties who need it.
In this article that I wrote down and it was published on NASDAQ, one of the things that’s mentioned, according to Dun & Bradstreet, Dun & Bradstreet is the largest data company that holds all the data as small business financing, small business credit, any data, small business has is housed there, according to them, alternative lending is currently not only supplying funding for small businesses, over the next few years, even the mid-sized businesses, and these are business from five million to $100 million in revenue, right, even the mid-sized businesses will need funding, so now, you’re not just funding as a business loan broker small mom-and-pop deals of 25, 50, $100,000, you’re going to have way larger opportunities of funding two million, five million, even $10 million.
According to another article, 40% of the people who dealt with alternative lending industry confirmed that their experience was way better, they got way better results than going through a bank because this is currently happening right now, right? If you try to go through a bank for, whether it’s for your PPP, or for a government loan, or for an actual business loan, the process is dreadful and really, really painful. It takes forever to get an update, even to find out what requirements they want for you to complete so you can proceed to the next step. Also, on top of that, the whole process takes sometimes weeks and months, right?
We’re in an ever-changing environment right now with technology is moving really, really fast and the traditional banking system is lagging behind because it’s very tough for them to catch up with all of this happening right now. It’s like trying to navigate an aircraft carrier. It’s not really that easy to make a right turn when you see the industry is going that direction. But alternative lending is really nimble in that sense and they can just move really, really fast. That’s why it’s adjusting to the needs of people.
Also, we’re experiencing it in minimum of 17% of growth year over year on the alternative lending industry. Talk about being an early implementer, whether you’re investing into alternative lending industry, whether you’re investing in yourself to start this business, this is the perfect time to do that, right, because we have this massive demand and supply’s right here, right, so there is more opportunities than we can handle right now. That’s when you want to get into the market. You don’t want to get into a business when demand is here, supply’s right there, and you’re trying to find a spot for yourself in-between that mark. You’re competing with a ton of other people. We’ve seen that in energy field, the deregulated energy. Everyone is selling gas and electricity services in Pennsylvania and Texas and all of those places, right? We’ve seen it on certain products, such as payrolls, such as the commodity product, and credit card processing.
You’re in the business of providing money to other businesses.
But lending is not that. You’re in the business of providing money to other businesses. That’s why we’ve been seeing an explosive growth in our community, too. A lot of people are seeing the value in this because it takes a couple of things to have massive success in life. I’m talking about the financial success. One thing is you shouldn’t be afraid of investing in yourself. That’s really, really important, which is obvious, right? Unless you keep adding more skills to your arsenal, you’re going to fall behind and your marketable skills will be smaller and smaller. That will be reflected on your pay rate. That’s why some of the jobs will not exist five to 10 years from now and those individuals who are not investing in themselves will fall behind and the market is not going to reward them with more money because there’s really no need for their services anymore, so investing in yourself, it goes without saying, is very fundamental, essential. It’s vital to your growth.
Besides that, when you invest in yourself, you got to know where to invest, right? There are a lot of things that you can invest in right now, like your mental energy, your financial resources, and people have finite amount of financial resources, so that’s really important where you spend your money and your time. Those are two important things, right? If you agree on investing in yourself, the second thing is you got to make sure you’re investing in something that has more demand, it’s been growing, so you catch the growth wave. You don’t want to catch the wave when it’s at the top, because then it might just come down, it might just flatten out. It’s like getting into the stock market at the top of 2008. Everyone thought that it was the best time to get in, and then it crashed. This is the same thing. You want to get into an industry while it is doing like a almost vertical takeoff. That is what we’re experiencing right now.
If you want to see yourself in a position to build a seven, maybe eight-figure business, maybe less than that, I don’t know what your goal is, right, but let’s take a bigger goal of building a seven and eight-figure business, you want to start doing that on an industry that’s on a growth pace and it has a very desired product, which is money. I don’t know any product, right, that’s more sexier than money, and that’s the second one. Invest in yourself, invest in yourself on an industry, on a business that’s in the growth mode.
The third one is: Do not be a passive investor, meaning that start your own business. Do not just passively consume information online. Listening to this video five times will not improve your life unless you take action and be a business owner, okay? Even if you have a reliable job and you’ve been working there for 10, 15 years, I mean, we’ve seen the story back in March 2020, right, that when the pandemic started, a lot of those secure jobs disappeared, and it could be something else five years from now, so try to think in terms of five years, setting yourself five-year goals, and decide to be in business. Whether you become a business owner in alternative lending or some other thing, always plan ahead, right? A lot of people go with the hype and join things when it’s at the top or when it’s already declining, right?
This article, which, again, I’ll have all the links for the reference that I made to the resource of Dun & Bradstreet, Business Insider, and other resources, and the article at NASDAQ, you’ll be able to see all of that below. Just go through that, consume that, and make a decision to own a real business. Invest in yourself and take advantage of this. Whether you’re investing your money into alternative lending, whether you are starting this business as a business loan broker, get in the industry that’s going to give you a 10, 15, 30X ROI than working on, really, just hypothetical gains on stock market and maybe cryptocurrency and other areas that everyone is talking about, but no one has really that informed to tell you if it is going to go beyond a certain limit or not.
Alternative lending industry’s going to keep growing.
With this, I can almost guarantee you that the alternative lending industry’s going to keep growing. Why? Well, look at Canada, United States, look at the demand. Not only people want them on it, they’re pleased with the exchange of working with an alternative lending industry. I’m looking at the lines of products that we’re training our members on. This is not like back in the day that people only are interested in only know about merchant cash advance, which has a very high interest rate, right, or factor rate, now, we’re training our members on 10-plus different products, and some of them have 0% interest for like 15 to 24 months, right?
For people in my inner circle, I talk a lot about building businesses through OPM, which is other people’s money, building businesses on credit that doesn’t really cost you much. Think about what you need to do to get a positive ROI on funding at 0%. If you have 15 months to make two 3% ROI on some kind of credit that you receive at 0%, it’s almost no-brainer. You got to figure out a way to at least make 5% on that money so you’re on the positive.
I hope this is making sense, right? People don’t use credit because either they don’t trust themselves that they’re not going to make the best use of the money they get, or they don’t understand it, so I wanted to make sure that you’re clear that now, alternative lending has access to a broader, especially at Business Lending Blueprint, we have access to a broader spectrum, pretty much any product that would work for your clients from 0% to really expensive ones, depending on the demand. If someone needs money tomorrow, they’ll be more expensive. If someone is in a better situation and they might need longer terms and better conditions, that is all available.
That’s why from day one, we’ve been a supporter of the entire lending industry and I made it my mission to train everyone in our platform different lending options so when they get in front of a customer, they contribute to that 40% feedback saying that 40% of people are like, “This was an amazing experience versus a bank loan,” right? That number is huge, right? That’s really, really huge. That’s why it’s important that if you decide to invest in yourself and join this business model, you want to work with companies who give you direct access to the lenders, lending sources, so there are no middlemen, but at the same time, they provide you the coaching and guidance required without taking away from your commission, because if that’s the case, you’re not really building a business, you’re working for somebody who’s going to keep you under control because they have access to the partners and lenders and all that stuff, so build a real business.
I hope this was helpful for you to understand alternative lending industry, the size of it, the direction of it. I’ll keep repeating that this industry is going to grow. My prediction is going to go beyond 50, $60 trillion in combination of United States and Canada and other English-speaking countries. We’re seeing a lot of movements in Australia and New Zealand and England, UK, right, so there’s going to be more adjustment in the marketplace and there’s going to be more application of alternative lending industry, so I just wanted you to see the big picture with this.
I hope this was helpful. Comment below and let me know what your thoughts are. Also, if you like the content that we’re posting on our YouTube channel, as you can see, we have hundreds of testimonials from actual students. If you want to hear more from me on topics like this, make sure that you click on Like and subscribe to our channel, so you get notified immediately when I release a new content. I’d like to see you on the other side. Take care, now. Bye-bye.