Loans exist since the year 2000 BC. J.-C .; Nothing new under the sun. In contemporary times, the easiest way to get financing for your small business was to get a loan from the bank. The arrival of FinTech has changed everything and banks are no longer the only solution for small business loans. There are certain advantages to getting an online loan, benefits that banks are unable to offer. This is exactly what we will explore in today’s article.
Are online loans safe?
Let’s settle this question right away. This is one of the most frequently asked questions in the online loan universe. One can answer without hesitation yes, as long as you know that those with whom you do business have put in place the appropriate security measures. We must recognize that we all make transactions online, sometimes even several times a day, without worrying in the least. Giving your credit card information on Amazon.ca is one thing while giving the same information to Amazon.youwantgetyourpas.com is a different story. We wrote some time ago a full blog on online security that you can read by clicking here here.
Benefits of Online Loans for Small Businesses
It’s time to look at some of the reasons that online loans for your small business may be more advantageous than a bank loan.
It’s a faster process
Any business owner who has applied for a loan at a bank knows very well how the process can be painful and painful. Not only do you have to fill in a lot of paperwork but, more importantly, you often have to wait for months before getting the funds. The speed with which you can have an online loan can vary, but at Evolocity the funds may already be in your account in less than 48 hours after approval. Companies are often in a state of emergency when they need additional funding, whether for repairs or other unplanned expenses, and the speed of funding makes all the difference.
Higher approval rate
Banks and online lenders use very different decision processes. Banks have very strict criteria and can refuse an application simply because the company is too small or does not meet a certain profile. Unlike banks, online lenders consider some factors and can accommodate more businesses. This does not mean that companies will necessarily be accepted or that they must stop applying for a loan if they have been refused by a bank in the past.
Flexible repayment options
Banks do not facilitate repayment. The standard in this area is a lump sum at the end of each month. This sum can be difficult to budget and have serious consequences for the company. Online loans to small businesses often offer so-called micropayments. Small amounts are taken each day and are thus much easier to meet. When the terms of the loan are determined, the customer can customize its terms and the duration of its repayment.
Once again, we only scratch the surface. In general, online small business loans are simply more convenient than bank loans. Of course, convenience is paid for and interest rates will always be slightly higher for online loans than for bank loans.
Where to look for an online small business loan
Do you want to get a loan? To learn more about our loan program, you can visit our website by clicking here. If a commercial loan is not suitable for your business, we also offer flexible cash advances to merchant cash advance merchants. Every business is unique and our financing experts are ready to help you find the best solution to meet the needs of your small business