If you are an entrepreneur searching for funds to develop your small business, you are probably aware that traditional lenders like bank loans and SBA loans are hard to secure.
Online business loan
Today, you can consider online business loan as one of the best options as they are readily available for small businesses. In fact, you may be feeling overwhelmed by all your options, and unsure of how you’ll ever choose the best one.
Since 2007, online lenders have joined the lending marketplace to open up credit for small businesses that don’t qualify for a bank loan. Many lenders operate online, something which is very different from the traditional processes. If your application for a bank loan has been rejected, your best alternative is an online loan.
Term Loans In term loans, a fixed amount of money is given to the lender and monthly payment amount and schedule are made until the loan has been repaid in full, plus interest.
Business Lines of Credit There are 3 general types: Unsecured lines of credit are like those you’d get from a bank, although interest rates are higher. Whether it is secured or unsecured, short-term credits are apt and proper for younger businesses.
Equipment Loans Funds are used for major purchases such as equipment, new office computers, latest vehicles or high-tech machines.
Invoice Financing Outstanding invoices can be utilized to get a cash advance from a lender.
Business Credit Cards Credit cards can be a great business financing option as credit card companies offer huge incentives and handsome bonuses that made business credit cards a profitable and attractive option for entrepreneurs seeking funding.
The Credit Line Builder More complex lines of credit are made up of credit line builder by combining various credit cards. For a fee, lenders offering this line of credit will help you draw cash from your credit card-based line.
Term online business loan
Online Short-term Business Loans This type of lender provides small business owners with loans that range from three to 24 months. Short-term loans are often taken out for short-term projects like inventory purchasing, marketing campaigns, or as general working capital. This type of small business loans and financing option could be appropriately fitted to meet the financing needs of short-term businesses.
Online Long-term Business Loans This type of online business loan lender provides business owners with small business loans that range from 1-5 years. These loans are best adapted for bigger projects like major renovations, the opening of a new location, etc.
Easier Online lenders are open 24/7 – you can start your online application whenever it is convenient for YOU, not when the lender’s branch is open, or there’s parking available.
Cheaper Lenders build things like site visits, office/branch infrastructure, overhead into the interest of the loan.
Speedier In fact, the online option is the fastest way to secure business finance. Algorithmic-based eligibility evaluations take a matter of minutes, sometimes even seconds. What’s more, for personal credit, you do not need to submit bulky documentation upfront for approval.
Wider choice When you apply online, you get a wide pool of lenders with many products.
Objectivity Every loan application is screened using algorithms. This takes away the subjectivity that applicants often experience when they approach lenders physically. Personal particulars, location, evaluator’s biases/preferences, etc. are irrelevant factors and are not included in the evaluation.
Online loans for business are easy and simple with a straightforward application process. They can be completed online, over the phone, or via fax are hallmarks of online lenders. You’ll need the following:
*Social Security Number *Business Tax ID *Link to your business bank account or certain lenders the paper bank statements. *Financial statements may be required (for larger loans)
Requirements for Online Business Loan
Requirements are variable depending on lenders but here are general guidelines:
ü Minimum Required Time in Business Operation: between 1-2 years ü Minimum Annual Revenue: $100,000 – $250,000 ü Minimum Personal Credit Score: from 500-650 ü Industry: Requirements from Industry vary according to a lender, but restricted industries also consider the provision of financial services, homebuilders, investors of real estates, etc.
For small businesses seeking added funds, the best source of business lending is the online business loan. The application is fast, easy and simple.
Joshua is a financial lawyer who plans on writing a book about his experience on debt collection laws and lending terms and conditions. He is currently one of the senior partners at his law firm but wants to take more time off for his writing.