Taking a loan has never been easier, especially for small business owners. They look for funds from every possible resource. Most of the times, they approach a traditional bank and look for ways to secure an unsecured business loan. However, most of the times they fail to secure one. On the flip side, even accessing a secured small business loan is not easy.
To obtain a secured loan, small business owners should pledge something equivalent to their loan. It can be their property, equipment or machinery. Under such circumstances, if a small business owner fails to provide any collateral, then he’ll be rejected for a loan.
There are a lot of other factors that make a traditional bank loan difficult to obtain. In many cases, small business owners looking for immediate funds may fail to meet their financial obligations resulting badly for their business growth and development.
Now, this is where online lenders can be of help.
Online Lending Services
Taking online lending service is the best option, do you know why?
Because securing funds from an online lender is relatively easier than taking a loan from a traditional bank.
Another important benefit is you’ll save a lot of TIME.And that will help you make timely decisions.
If you are a seasoned businessman with a good credit score even then taking a small business loan is not easy. Irrespective of your credit status, you have to go through a lengthy application process, following which; you’ll be made to wait for a few more business days before you can access your funds.
The classic explanation for online lending services goes like this,
“Online lending service is money lending program, where business owners will be provided short-term loans or line of credit under lesser credit terms.”
Some of the online money lending models,
- Short-Term Loans
Business owners who require immediate working capital can opt for a short-term loan. The program requires the borrower to pay the money back in a short-term with high-interest rates.
- Merchant Cash Advances
Using the future revenues or credit card sales, small business owners can secure a small amount of fund through the merchant cash advance program.It is not a loan, but with the available business receipts, the business owner can get capital immediately.
- Lines of Credit
Traditional banks provide fundsall at once. However, under the lines of credit program,the creditors allow borrowers to take money as much as it is required.
- Invoice Factoring/Accounts Receivable Financing
This is a form of asset-based lending, where you would keep all your accounts receivable as collateral with online lenders for immediate funds. Small business owners who have a huge number of invoices with long credit terms will find this program very convenient and useful.
- Purchase Order Loans/Financing
Under this financing program, you’ll be provided funds to pay your vendors/suppliers. The loan amount may not completely cover the costs but will help you pay the maximum amount.
What is the Common Thread b/w all the Online Lenders?
Every businessman taking online lending service may have varying experience based on their lender and loan program. The terms and funding policies may differfor each online lender, but the funding process is faster and simpler.
The common thread is – Convenience &Accessibility.
Benefits of Online Lending Services
- No Waiting = No Wasting of Time
Everything is online and automated. That meansyou don’t have to fill any lengthy forms or wait for days to get your money.
Applying for a loan is very simple. Visit the website,select the loan program, upload the required documents and within a day money will be transferred to your account.
Neither you have to visit any place and nor you have to wait for days. You’ll get money for your business quick and easy.
- No Collateral Required
Unlike traditional secure bank loans, you don’t have to worry about providing security against the funds you are taking. You will get small business loans without having to provide any forms of collateral.
- Qualify Even with Low Credit Score
A credit score is like a report card. Normally, most of the small business owners do not qualify a bank loan due to their low/no credit score. However, there are many online lenders who give loans with no minimum credit score requirement.
It’s a common thing for business persons to approach a bank for a loan to meet their capital and other financing needs. They should realize that qualifying a bank loan is not easy if they are in the initial years of their business.Lenders will check your credit score or ask for collateral before they approve your loan application.
Fortunately, you can protect the business interests by taking online lending services. The biggest factor of online programs is they are easier to qualify. Despite your bad credit history, you can easily qualify a loan and run a better business.