Online Small Business Loans: Why So Many Companies Are Opting In
Gone are the days when doing your banking online seemed like risky business – Canadians are confident online. In fact, in 2015, Canada’s internet use was the highest in the world, with residents spending an average of 36.3 hours online every month. With all this time spent connected, it only makes sense that Canadian business owners would look for financing online.
Aside from the fact that online small business loans are easily accessible, there are many reasons they are becoming the financing method of choice for many small business owners.
The data submitted to apply for a loan contains highly sensitive information - it’s normal to be apprehensive about putting that information out there. To ensure the safest environment possible, Evolocity has partnered with DigiCert to provide 256 bit-encryption and a Secure Sockets Layer (SSL) protocol. This means all the information is encrypted, always. If you’re comfortable walking into a bank and filling out a paper based application, you should have no qualms about completing the online equivalent.
If you have ever applied for a loan from the bank, you’re probably very familiar with the stacks of documents that need to be filled out. This process has been replaced by software and automated decisioning models. If you need to fill out an application on the go, you can always complete it on any mobile device. Point being it’s fast, really fast. In fact, the Evolocity application can usually be completed in less than 10 minutes.
The typical form of repayment on a bank loan is monthly, lump sum payment. This can put serious stress on a business’s cash flow. Online business loans usually feature “micro payments” which are small, daily payments. The applicant can also customize the terms of repayment on the loan to meet their needs.
4. Higher Approval Rates
The decision process used by online lenders and banks is very different. If you have applied with a bank in the past and been declined, there is no need to panic. You may just have not fit the typical profile the banks prefer. Unlike banks, online lenders focus on more than a few details and can accommodate a larger variety of businesses. To find out how much your business qualifies for, go through the application process sooner rather than later to be prepared when the need arises.
If you enjoyed this post, sign-up for the Evolocity Newsletter to get even more small business tips and industry news delivered directly to your inbox!