Loans exist for centuries ago; not a new thing and the saying goes by “Nothing new under the sun.” In recent times, the easiest way to get financing for your small business was to get a loan from the bank. The arrival of online platforms that provides small business loans 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.
Are these online loans safe?
Probably one of the most frequently asked questions in the online loan universe. And to answer without much hesitation yes, as long as you know that those with whom you do business have put in place the appropriate security measures. We must admit the fact that we all make transactions online, sometimes even several times a day, without worrying in the least. Giving your credit card information on e-commerce sites is one thing most people engage in without fear.
Benefits of Online Small Business Loans to Bank Loans
1.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 tedious. Not only do you have to fill in a lot of paperwork but, more importantly, you often have to wait months before getting the funds. The speed with which you can have an online loan may vary, but the money 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.
2.Higher approval rate
Banks and online lenders use very different decision processes. Banks have stringent criteria and can refuse an application just because the company is too small or does not meet a specific profile. Unlike banks, online lenders consider some factors and can accommodate more businesses.
3.Flexible repayment options
Banks do not facilitate repayment. The standard in this area is a lump sum at the end of each month. This amount can be difficult to budget and have severe consequences for the company. Online small business loans often offer so-called micro-payments. Small amounts are taken each day and are thus much more comfortable to meet. When the terms of the loan are determined, the customer can customize its terms and the duration of its repayment.
Online small business loans are simply more convenient than bank loans. Obviously, convenience is paid for, and interest rates will always be slightly higher for online loans than for bank loans. Every business is unique, and these platforms are always ready to help you find the best solution to meet the needs of your small business