The New Way to Borrow

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Most businesses at one time or another will need to get a business loan and traditionally when they did they would have to apply to a bank. The trouble with that though is that they will have to provide the bank with a lot of accounts recording the business’s financial history, give a long in depth of description for why they need the money and after all of that, have to wait several days for a decision. Although providing accounts and a plan for the future of the business may seem acceptable, having to wait whilst the bank ponders on their decision can sometimes be a problem as the money is needed right away in order for it to be of the best use.

Today though, those traditional business loans are becoming something of the past as online lenders, like are becoming increasingly popular and with good reason. These online lenders will give businesses loans of up to $150,000 or in some instances as much as $500,000 and will give approval for the loan within 24 hours of being applied for online. As an added bonus, a lot less red tape is to be maneuvered through and very few business records need to be shown.

These new lenders use their discretion, linked with software which analyses the financial risks involved, making a decision far easier to make in just a short time. Just as with a business loan from a bank, these online loans allow several months to be paid back and the terms can be very flexible. Obviously with a business loan being approved in just 24 hours, a business can make the most of the money, taking advantage of any unexpected opportunity that has arisen.

It is perhaps not that banks do not do a good job but they have had the monopoly on business loans for so long, they have never streamed lined their approach to approving loans, expecting a business to patiently wait whilst the bank weighs all the pros and cons of committing to the loan. Although banks will of course continue to make business loans, as more and more businesses turn to the internet for their loans, banks will probably have to start to stream line their approach to awarding loans if they want to remain the leader in the business loans sector.

Many business owners that have already received online loans have indicated that although the loans were applied for online and approved online, the standard of personal service was higher than if they had gone to a bank. The banks, as they held the monopoly in business loans for so long, had depersonalized their service, treating all businesses the same with no room for personal influences.

Just as with bank loans, the online business loans can be easily topped up if needed and even increased should the terms seem favourable. Although banks are obviously here to stay, it would appear, due to their popularity, so are these online lenders.


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