Alternative lenders refer to non-traditional financial institutions that offer loans or credit to individuals and businesses. These lenders typically operate outside of traditional banking systems, providing funding through alternative means such as peer-to-peer lending, online lending platforms, or specialized finance companies. They often cater to borrowers who may have been rejected by mainstream banks due to poor credit history or insufficient collateral. Alternative lenders can offer more flexible terms and faster approval times compared to traditional bank loans, but they may also charge higher interest rates.