The internet revolution has also evolved the financial management of countries. People are now moving from traditional financing option to new breed of lenders who operate entirely virtually. Assisted with web-based smart applications, interfaces and speed, now getting a loan sanctioned has become a matter of few minutes. These online fast loans are made available after the primary form is filled online, and soft copy of the necessary documentation is attached to the credit check. Within few hours of submission, the approval and sanction of the loan amount get confirmed, and the amount gets transferred to your bank account linked online via payment gateways. Since transacting online also have a limitation regarding the authenticity of lender, you can always review the list of verified and register lenders available on www.moneyadviceservice.org.uk
Different types of business loans which you can avail online include:
1. Term loan: Similar to traditional bank loans, term loans are available for a set amount and is repaid through monthly payments. But these online loans are much easier to qualify compared to complex procedures of the bank but come at a higher rate of interest.
2. The line of credit loans: There are three types of such investments. Unsecured credit loan similar to other loans available from the bank, but being online it is on a higher rate of interest, secured loans are the sanction against giving a guarantee like a piece of property or asset. Short term line of credit is a perfect option for novice investors.
3. Invoicing financing: A newer concept, here the borrower uses their outstanding invoices to get cash advance from lenders. Lender advances a percentage of the invoice as a loan and holds the remaining part. Till the customer pays the invoice, lender charges a certain percentage per week. At the time of full payment received, lender, settle down they’re recoverable about out of the 20% of the invoice amount.
4. Business credit cards: It is a lucrative offer for entrepreneurs seeking financial assistance. With additional promotional schemes like reward points and cashback offers, these types of loans attract more and more borrowers.
Specific benefits of availing online business loan are:
• Easy application process: The application interface window of these lending sites is straightforward and user-friendly. The accurate information required to be submitted social security number, business Tax ID, business and personal bank statement and financial statement for past few years. In most of the cases, your credit scores are not stressed upon a lot. Based on the current economic status of the company and expected receivables, the loan amount is sanctioned.
• There is 24/7 customer support available online. Therefore, there is no time constraint; you can evaluate and compare various online loan proposals online regarding interest rate and payment terms, and accordingly apply for the chosen financial plan conveniently from the ease of your home.
• Offer tailored business loans: Unlike financial institution where the loan options are restricted to off the shelf financial plans with rigid terms and condition which may not suit well to your financial needs and timelines. Online lenders give flexibility to a certain level to the borrower to negotiate the interest rates, payment schedules and deadlines.