Small business owners sometimes struggle to finance one big project they believe can catapult their businesses to dizzy heights. The problem with traditional lenders like banks and credit unions is that they tend to sit on loan applications for too long. Since we’re lucky enough to operate our businesses when everything seems online, business funding is no different.
Several online funding options are available, and it is common to become overwhelmed quickly. 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. If you have a thriving business and an impressive credit score, you can bypass banks’ cumbersome loan application processes and straightway apply for long-term online loans. You get a lump sum disbursed as the loan you repay over a long period. The interest rates are higher, and you will pay more than you 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 but helps business owners secure loans from 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 lowers the lenders’ risk levels.
However, no online lenders provide this loan, but you can apply online for such loans and get the requisite money from banks. SBA loans come with lower interest rates and more extended repayment periods. However, these loans have stringent policies for loan approval and are usually accompanied by painfully-long documentation.
Short-term online loans:
If you need immediate funding to meet urgent financial obligations, then there can’t be a better option than short-term online loans. From the time of submitting your online application to the disbursal of the loan amount is only a matter of a few days. The lenders have very lenient eligibility requirements but very high-interest rates. Thus, when applying for short-term online loans, remember that you must repay much more.
In conclusion: If you need quick cash, a short-term online loan can be your saving grace. With other lenders, applying to receive the funds takes only days -not weeks or months. The rates are high, but so is the convenience.
Interested? We’ll help you get started! Owner finance has been helping people like you find financing for many years, and we’d love to lend our expertise to yours too! Fill out this form today, and see what we can do together!