Approximately half of loan applications are being approved by small banks while about two-thirds of loan applications are being granted by alternative lenders. Alternative lenders are more flexible with lower credit scores. Bank loans are not only difficult to attain, but also the processing time is longer. There is much risk in granting money to startup companies. Concern lies in the fact if whether or not the company will reimburse its investors. Another added factor is crowdsourcing; it has become competition for alternative lenders. Crowdsourcing is the method of acquiring necessary means through a third party separate from the traditional suppliers such as banks. It is a suitable option to get a company started. However, when startup companies seek assistance through crowdsourcing, it takes away the opportunities for the alternative lenders. There is already an established competition with big banks. With the addition of crowdsourcing, alternative lenders are facing a constant struggle for companies to aid.

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