To get some much-needed capital for your small business, you may have thought about applying for a small business loan.
While you could go to your local bank where you have your business accounts and inquire about their loan options, you also like the idea and convenience of applying with an online lending company.
At the same time, you admit that you are not totally knowledgeable about online lending, including how it works and why it may be the best option for business loans.
With this in mind, let’s take a look at online lending. Here are four key points that are worth learning about these types of small business loans:
Online Lending 101
As its name implies, online lending refers to loans that allow you to complete the entire process online. Rather than setting up in-person appointments at a bank, you can technically complete the pre-qualification paperwork and sign loan approval documents from the comfort of your couch. Online lending can be achieved either through a brick-and-mortar bank that offers it as an option, or you can also work with a lender that is only available online.
1. Flexible Options are Often Available
If you are considering online lending for your small business financing, you may want to look for a company that offers different repayment options for its loans. For instance, direct lender Zinch features flexible choices for borrowers, including loans for businesses with no credit. The Zinch Flex loan offers flexible payment terms so that you can pay the loan back based on your revenue, and the Zinch loan offers a lump sum of cash with a fixed payment amount.
2. Cash is Typically Available Very Quickly
Online lending is probably the best option if you would like a cash advance for your small business sooner rather than later. Online lending often processes applications more quickly and makes decisions faster than a traditional in-person loan department. In some cases, you might even get your loan funded the day after you apply.
3. Comfort with Technology is a Must
To apply for a small business loan from an online lender, you must submit a lot of documentation and personal data over your computer. Suppose the thought of conducting this sort of business over the internet with limited interaction with a real person makes you uncomfortable. In that case, you might want to use the face-to-face loan option at your local bank.
However, for busy small business owners who tend to be very short on time, the option to complete this process on your own time — all from home, on a secure website — is a great solution. Before you start, ensure that the company is reputable and will keep your personal information safe. Do your research with the Better Business Bureau and check online reviews.
4. Online Lending is an Outstanding Option
In today’s extra busy world, it is reassuring to know that you don’t always have to add more appointments to your to-do list to get a much-needed loan for your small business. By working with a reputable online lender, you can quickly and easily complete the process and have the money in hand, all in a very short amount of time.