The Internet Has Revolutionized the Business Loan Application Process
Think about how reliant we are each and every day on the Internet. The Internet allows us to get travel directions, find dinner recipes, do our banking, communicate with friends and family, research anything in an instant, and entertain ourselves nearly anywhere. For those of us who remember the “good old days” of paper maps, flipping through cookbooks, driving to the bank between the hours of 9am and 5pm, sending paper letters and licking stamps, and driving to the library to research a topic, we can certainly appreciate the impact the Internet has had on all of our lives. While some activities are best left done in person, why does a loan application require a special trip and time out of your busy day when it can be completed quickly online? Applying for an online business loan makes sense. Here are five reasons to apply for a business loan online:
1. Streamlined Application Process
Applying for a small business loan online is typically a streamlined process. Online loan applications are concise, ask only for the information that is relevant to the approval process, and can usually be completed in less than ten minutes. Contrast that to driving across town to a bank or credit union, waiting in line, and then completing an invasive loan application. Online loan applications make sense.
2. Time Savings
As a small business owner, there is always something to do. Any small business owner who says they have nothing but time on their hands is probably joking – running a small business is the hardest thing most people will ever do. Wasting time on an old-fashioned and inefficient loan application process is a waste of time for business owners who need to invest time in their company.
3. In-Depth Analysis
Online lenders offer an advantage that most banks or credit unions don’t – the ability to maintain an extensive financial library of key terms, concepts, and financial education materials for review. This allows for the consumer to find the perfect loan in little time, versus having to consult a small business loan specialist at a bank who is truly just interested in closing a sale.
4. Quick Funding Options
Most online lenders can provide funding within a few days, provided the borrower completes the application in full and provides all relevant documentation. Some expenses are truly urgent, like payroll, inventory orders, or tax bills, and a two to three month funding target will not suffice.
5. Online Lenders Aren’t Just Concerned With Your Credit Score
Many online lenders offer asset-based repayment schedules, meaning that you are taking a loan against future account receivables. This means that the lender is more interested in the potential of your business, versus your past performance. This is important for those that have a solid business plan but don’t necessarily have the strongest credit or assets.
There are many reasons why a small business owner should apply online, the biggest two being the convenience factor and the likelihood of approval. In the end, isn’t that what small business owners are asking for – respecting their time and offering solutions to help their business? Online lenders understand this and have answered the call.