Online technology has transformed pretty much everything in our daily lives. We can order food, trade stocks, book flights, pay bills, and purchase just about anything from our computers.
When it comes to obtaining a loan for your company, online technology makes it more easy and efficient than ever before. Business owners are offered a way to obtain funding without the complicated and time-consuming processes that were commonly associated with traditional bank loans. Research from a leading business news website reveals that 38% of business owners applied for an online business loan last year, and it's only increasing from there. This Union Commercial Capital blog explains how online business loans work.
No Drive, Paperwork or Extensive Wait Times
You can get a business loan without having to leave your home or office. In addition, collateral and financial documents might not be required depending on the lender you choose and the amount you want to borrow.
Rather than driving to the bank to meet with an advisor and fill out paperwork, you can simply log in online and submit a loan application at a time that works around your schedule. Most online applications can be completed in under 10 minutes, and pre-approval decisions are made quickly based on soft credit inquiries.
Fast Access to Cash
Online technology has increased expectations like never before. We have tons of information available at our fingertips, and we expect convenient buying options, fast turnaround times and shipping. Small business owners also share the same time-sensitive demands of consumers, particularly when it comes to the small business loan process.
As mentioned earlier, online loans change the game with their increased convenience and efficiency. This adds up to faster loan turnaround times, which is welcome news if you need cash to make an important purchase, stock up on inventory, pay your bills or suppliers, or kick-start the launch of a new product or service.
Soft Credit Inquiries
Because a soft credit inquiry does not affect your credit score, you can shop online for a loan with the lowest interest rate and compare your options. With that being said, make sure the online lenders you are considering will only conduct a soft credit pull, and not a hard credit inquiry.
If a hard inquiry is part of a lender’s decision-making process, it will appear on your credit report. A single hard credit inquiry can impact your credit score, and several hard inquiries in a short period of time is a red flag for lenders.
There are many direct lenders and financial technology companies that offer online loans. Picking the right one for your company can seem like a tough task, but it does not have to be. Make sure to conduct a quick online search to see if they have any customer reviews and accreditations.
Σχόλια