Online Lending For Small Businesses

Whether a business is just starting, going through a crucial growth period, or well-established in the industry, there are plenty of expenditures to build the foundations of a brand. Seeking funding for your business is one of the solutions to help you grow your business.

The Rise of Online Lenders

Through the years, technological advancements in the finance industry have broadened lending options for small businesses and entrepreneurs more than ever. Aside from seeking financial assistance from traditional lenders such as banks and credit unions, there has been a significant surge of online lending companies.

In fact, according to the 2019 Report on Employer Firms, nearly one-third of small business credit applicants sought financing from online lenders—raising the online lender application rate from 24% to 32% in 2018.

Over the last decade, online lending companies have become an essential part of the business financing industry. To explain more, let us tackle the differences between traditional and online lenders.

Traditional Lenders VS Online Lenders

New and smaller businesses are more likely to apply to online lenders. Traditional lenders are appreciably great funding options since they offer competitive rates and terms. However, getting a loan with them is not always an option.

The application processes with a traditional lender can be a very strenuous process with a lot required—like documentation, sometimes collateral, credit scores, and time to wait for their loan to get processed.

Businesses that need funding urgently may find that online lending is ideal, convenient, and flexible for immediate goals. Every business has different financing needs and must choose funding options that make business sense.

In light of the discussion, we will consider a few of the advantages of online lending companies and how they help especially small businesses.

Advantages of Online Lending for Small Businesses

1. Convenience

Technology-driven, online lenders extend a more convenient process in terms of application requirement paperwork and other specialized services such as free consultations and paperless transactions.

Many online lending companies only require readily available documents and within your reach to see what funding options are available to your business. With online lending especially during the COVID-19 pandemic, you can apply conveniently at home 24/7.

      2. Higher Success Rate

Small businesses that applied with online lenders reported more success in obtaining credit, despite having lower credit scores. Online lenders take a holistic approach when reviewing business loan applications and not just depend solely on credit scores to prove legitimacy and credit-worthiness. The ultimate goal is to find the best funding option to fit your specific business needs.

      3. Faster Process

Online lenders have a streamlined application process that allows for fasting processing and funding. Fast funding is necessary when a business gets opportunities to increase profits or for emergency cash-flow needs.

Lendhalo—Your Business Funding Warriors

Ultimately, online lending companies can do so much help, especially for small businesses seeking funding—whether to develop their brand, to cover operational costs, or to expand their trade.

Here at Lendhalo, we offer you a fast and hassle-free business funding experience. With our multiple financing options to choose from and excellent consulting services with our funding experts, we guarantee small business owners and entrepreneurs to receive the best loan terms possible for their business.