Why an online small business loan beats going to the bank
Loans have been around since 2000 BC; definitely nothing new. During our lifetimes, the easiest way to get financing for your small business was by taking a loan with the bank. Times have changed with the FinTech wave and banks are no longer the be all end all of small business loans. There are some advantages to getting a business loan online that the banks just can’t provide. That’s exactly what we’re going to dive deeper into in today’s article.
Are online loans secure?
Let’s get this one out of the way. This is one of the most frequently asked questions in the online loan world. The short answer is yes, as long as you know who you are working with has proper security measures in place. The truth is all of us perform transactions online, sometimes several times a day, without blinking an eye. Putting your credit card information on Amazon.ca is one thing, putting it on Amazon.wewontstealyourmoney.com is a different story. We wrote a full blog on the online security earlier in the year, you can read it here.
Advantages of online small business loans
Time to dive into some of the reasons why online loans for your small business can be more advantageous than going to the bank.
- It’s a faster process
Any business owner who has applied for a loan with a bank knows just exactly how painful this process can be. Not only is there extensive paperwork to fill out but more importantly you often have to wait months before getting the funds. The speed you can get an online loan varies, but at Evolocity funds can be in your account within 48 hours of approval. Businesses are often in a pinch when they need the extra funds, be it for a repair or other unexpected expenses, and the fast funding time makes all the difference.
- Higher approval rating
Banks and online lenders use very different decision processes. Banks have very strict criteria and turn down businesses simply because they are too small or don’t meet a specific profile. Unlike banks, online lenders focus on one thing and are able to accommodate more of these businesses. That doesn’t mean businesses will necessarily be accepted, nor should they be discouraged from applying for a loan if they have been turned down by a bank in the past.
- Flexible repayment options
Banks don’t make repayment easy. The standard in that world is a lump sum payment at the end of the month. This can be hard to budget for and take its toll on a business. Online small business loans often have what are called micropayments. Small amounts are taken daily and are much easier to support. When designing the loan, the customer can actually customize the terms of repayment and duration.
We have once again just begun to scratch the surface. Overall, online small business loans just more convenient than bank loans. Convenience does come at a cost, as rates will always be slightly higher than those you find at a bank.
Where to look to get an online small business loan
Are you looking for a loan? Evolocity Financial Group is a leader in the Canadian online small business loan world. To learn more about our loan program, you can visit our website here. If a business loan doesn’t fit your business, we also offer flexible merchant cash advances. Every business is different and our financing experts are ready to help you find the best fit for your small business.