Strategic Alliances are a strategy for getting what you need for your small business without necessarily incurring further debt. This happens when two or more companies form an alliance while retaining their own identity; in certain cases, a separate legal entity or "joint venture" can be formed to accomplish the same purpose. Each company agrees to commit resources for common business objectives.
Through strategic alliance, the joint venture can penetrate the markets it chooses without a loan. Sometimes referred to as a reverse-loan, a strategic alliance helps two or more companies' revenues share on a mutual or multi-component product and/or service.
For example, StrongBusinessCredit takes advantage of and benefits from such alliances. Perhaps the most valuable alliance for SBC has been with Initial Underwriting Group (IUG), who's enhanced our ability to reach out to more lenders. Prior to IUG, StrongBusinessCredit was considerably limited with its brokers and lenders. With IUG, we have been able to broker out to more lenders and larger networks.
This strategic alliance has opened doors for our clients. Previously, StrongBusinessCredit had three account types which it could service: scratch startup (SSU), overextended startup (OSU), and business credit only (BCO) businesses. That meant that if you are already in business we could not help our clients to our satisfaction due to the focus on business credit building only. With a strategic alliance with IUG, we have been able to extend our expertise advice to two more account types. Now, no matter what stage business owners find themselves at, IUG and StrongBusinessCredit are now able to accommodate. The power of a strong strategic alliance can't be denied.