If you’re an entrepreneur navigating today’s lending environment, you already know the deal. You’ve built a business from the ground up, filled with ambition, hustle, and more late nights than you care to count. But now you need capital, and suddenly that “straightforward” SBA loan process looks anything but.
With the Small Business Administration’s latest regulatory changes rolling out June 1, small business lending is set to become even more complicated, especially for entrepreneurs who have historically relied on revenue-based financing or merchant cash advances. Traditional SBA-backed funding can no longer be used directly to pay off these revenue-based financing arrangements, potentially leaving many entrepreneurs in difficult positions.
Enter alternative lending. A growing wave of fintech-powered lenders is stepping up, providing solutions beyond the traditional bank or SBA options. These platforms offer quick access to capital, simplified processes, and a refreshing dose of transparency that entrepreneurs desperately need.
Kunal Bhasin, Founder and CEO of the leading fintech marketplace 1West, sees alternative lending as more than a trend. It’s a necessity.
“Traditional financial institutions are often too slow, and the process is too cumbersome for today’s entrepreneurs,” says Bhasin. “Alternative lending has brought additional options to entrepreneurs, which allow them to shop and compare several different lenders and different types of lending, whether it’s secured or unsecured, a line of credit, or a term loan. Today’s small business leaders deserve and demand speed, transparency, and flexibility.”
Bhasin speaks from experience. With years spent as a lending executive before launching 1West, he has seen firsthand how traditional lending approaches can slow down or stall small businesses. His fintech marketplace addresses these issues head-on, syndicating a single loan application across a national network of more than 50 lenders and often within 24 hours.
The recent SBA policy shift underscores the importance of choosing the right financing structure. Entrepreneurs aiming to use SBA loans as an exit strategy from higher-cost arrangements need to be aware that revenue-based financing may no longer be compatible with that path.
“This SBA change could catch many entrepreneurs off guard,” explains Bhasin. “Revenue-based financing agreements will always have their place, but if an SBA loan is your endgame, a traditional loan structure might now serve you better. Our role, as responsible lenders, is to educate entrepreneurs proactively — ensuring they’re not stuck scrambling for funds when SBA financing is within reach.”
Bhasin’s emphasis on education and transparency represents a broader shift happening across the fintech lending industry. Alternative lenders aren’t merely filling gaps left by banks. They’re redefining how capital flows to Main Street businesses. Instead of archaic credit checks and mountains of paperwork, entrepreneurs now access funding through sophisticated algorithms, clear pricing, and rapid response times.
This transformation couldn’t come at a more critical moment. Recent data shows banks approving fewer than half of small business loans, leaving thousands of entrepreneurs scrambling for alternatives. Revenue-based financing has traditionally filled some gaps, but now, with SBA changes, businesses must reconsider their funding strategies.
Yet alternative lending isn’t without scrutiny. Regulators are watching fintech lenders closely, pushing for greater transparency and ethical standards. It’s a challenge that Bhasin and many in the fintech industry openly embrace.
“Transparency isn’t optional, it’s foundational,” Bhasin says. “Our approach at 1West has always been about laying out options clearly, side by side, in real time. Entrepreneurs need straightforward information to make strategic decisions, not another layer of complexity.”
For financial advisors and CPAs guiding small businesses through these changes, alternative lenders offer new tools and clearer paths forward. Meanwhile, investors and policymakers closely monitoring fintech’s growth see these platforms as critical infrastructure supporting a resilient small-business economy.
With traditional lenders pulling back, regulatory landscapes shifting, and businesses growing ever more agile, alternative lending provides the lifeline entrepreneurs need. As SBA rule changes continue to ripple through the market, platforms like 1West are poised not just to adapt but to empower entrepreneurs through every twist and turn.
The future of small business lending isn’t coming soon. It’s already here. And for entrepreneurs navigating a complex financial landscape, that’s incredibly good news.
