Small business owners find it really hard at times to finance that one big project they believe can catapult the businesses to dizzy heights. The problem with the traditional lenders like banks and credit unions is that they tend to sit on loan applications for far too long. Since we’re lucky enough to be operating our businesses when everything seems to be online, it’s no different for business funding as well.
There are several online funding options available, and it is quite common to become overwhelmed quite easily. In order to make your life easier and help your business get the appropriate funding, here is a list of some of the most popular online funding options for businesses:
Long Term Online loan: This is similar to the term loans offered by banks and financial institutions. In case you have a thriving business along with impressive credit score then you can bypass the cumbersome loan application processes of banks and straightway apply for the long term online loans. You get a lump sum amount disbursed as the loan that you repay over a long time period. The interest rates are obviously higher, and you will end up paying a lot more than what you have borrowed. However, small business owners prefer this because of the no-frills paperwork and quicker processing time.
SBA Loan: Small Business Administration (SBA) does not provide loans directly and instead helps businesses owners secure the loan from the banks and credit unions. They act as the guarantor for the loan and help your business get the necessary funds. The best thing is that SBA even brings down the risk levels for the lenders. However, no online lenders provide this loan, but you can certainly apply online for such loans and get the requisite money from banks. SBA loans come with lower interest rates and longer repayment periods. However, these loans have very strict policies for loan approval and usually accompanied by painfully-long documentation.