Financing your business is one way to promote growth and success, and you may feel disheartened if your application for a loan is rejected by a traditional bank. However, there are other options available to you that involve online borrowing. In your personal finances, you may find payday loans from an online lender benefit you in financial emergencies, and there are similar options available for your business too. Keep reading to discover the importance of online financing for small businesses.
Quick Turnaround
When you’re a relatively new business, you may have a lot of sudden, unexpected expenses pop up. For example, you may suddenly see a boost in orders and need a bulk order of packaging. If you don’t have the funds immediately, you might be worried you can’t fulfill the orders. However, online lenders have the potential for a very quick turnaround, so you can see the funds a lot quicker than if you applied through a bank.
Online application forms tend to be very straightforward as well, so you don’t have to spend hours going through a backlog of your books before even applying. If you’re approved, you can generally expect to see the funds in your account pretty soon, too, with some able to release them within 24 hours. Using an online finance option means you can spend more time focusing on running your business and less time trying to arrange finance.
Better Customer Support
Although banks do provide customer support when you take out a business loan, you may find that online lenders have a larger group of specialists who are available any time of day, rather than the end of the business day. For example, if you need the funds quickly and there’s been a problem with the processing, a bank might not notify you until the next working day, but an online lender may already have their team working on it and contacting you outside the standard 9 to 5 business hours.
No Credit, No Problem
When you apply for business finance through a bank, they will consider your credit score very carefully, and if you’re a new business just starting up, you may not have built one yet. Online lenders will check your credit score, but if you don’t have a great one or have one at all, this might not mean automatic rejection.
Flexible Options
Most online lenders offer the ability to amend your payment schedule to suit your business. One way they might do this is to allow you to pay more when your business is typically busier, and less when it’s a little quieter. This way, you can feel secure in the knowledge that you’ll be able to make the repayments. You can also choose how long you want to pay it off. Some may allow you to pay it off over a more extended period of time, or you can choose to pay it off in a few months if it’s feasible for you.
Online financing can be beneficial for your small business, as it can help you get the funds you need quicker and doesn’t expect you to have the highest credit score. As a smaller business, their flexibility might appeal to you too, because your cash flow might not be as steady yet. So, the option to vary your payments can be a real bonus. If you think online financing might be right for you, spend some time shopping between the different lenders and see which one can meet your needs and help catapult your business to success.
