At one time, when a business required a loan they had little choice except go to a bank and ask for one. Going to a bank for a loan cannot only be uncertain for success but can also be a long and drawn-out process, something many businesses would prefer to avoid. Today though, it is now possible for a business to apply for a business loan online and the Official site for many of these online lenders claim that their loans are both quicker and easier to get than bank loans.
Just like in the past, businesses today need loans from time to time, either to expand their business or to just keep it going until a certain high selling period reaches but when these loans were needed, a business would have to make an appointment at a bank and take with them a full history of the business’s finances and be ready to answer numerous, intrusive questions about the business. Today an online loan though can be obtained without showing reams of accounts dating back to the business’s foundation and far fewer questions will be asked.
The online lenders are able to achieve this by using a combination of good personal judgment, plus patented software that evaluates the financial risks involved, based on a minimal amount of data on the business. This combination is not just proving effective but also means that decisions on whether to approve a loan or not can be made quicker, providing the business requesting the loan, an answer within 24 hours.
This means that often, in the same time it would have taken a business owner to set up an appointment with a bank and attend that appointment, a businessman applying for an online loan can already have the cash requested. Often the success or failure of a business proposition will depend on the ability to take up the opportunity as soon as possible and so not having to wait on a banks’ decision, for perhaps 3 or 4 days, can make a venture profitable instead of it becoming a failure.
Although the time it takes to approve these online loans is short, it does not mean that the amounts have to be small as many of these online lenders will make even the smallest of businesses loans of up to $150,000 and the larger businesses perhaps as much as $500,000. The terms for these loans are also very reasonable, sometimes allowing 24 months to pay back but they are also very flexible, able to fit in with a business owner’s financial plans.
Either due to the lack of a lot of red tape which banks is notorious for sticking to, or because of the speed in which approval for a loan can be received, these online loans are becoming increasingly popular with those businesses which need financial assistance from time to time. Unless banks decide to change their procedures, making them easier and quicker, they are likely to continue to lose loan candidates to these online lenders.