27 Dec Why Choose an Online Lender
Online business loans continue to capture more of the business lending market, particularly for small businesses. As explained in a 2016 working paper published by Harvard Business School, new technology has made it easier for business owners to seek a wider range of financing than ever before. Many new online business lenders have sprung up to use these digital tools and fill in the gaps left by the biggest financial institutions, particularly the small business lending market.
But wait, you might be asking, why would anyone want to get a business loan online? How can you be sure any online business lender is trustworthy, or that they have the resources to help your company?
Your skepticism is perfectly valid – after all, online lending is truly new territory that most business owners are still unfamiliar with. But the key reason behind the success of these lenders lies in the success of the small businesses who borrow from them. Online business loans are increasingly becoming a true alternative for small companies that, in most cases, wouldn’t be able to get the same help elsewhere.
According to research cited in the Harvard Business School report, the biggest financial institutions (think banks with many brick-and-mortar branch locations) have gone from underwriting about half of all business loans in 1995 to less than a third by 2012. Most assume that share has shifted even further in the years since as more online lenders emerged on the scene.
What Sets Online Business Lending Apart
What exactly is driving small business owners to these online lenders? The answers have to do with the convenience and familiarity most of us have with the internet, combined with a few unique differentiators:
Researching options for online business loans couldn’t be easier. There is a wealth of detailed information regarding specific lenders, how their financing works and how they compare on price.
Applying for an online business loan is easier too, and not only for the same reasons as above. Many online lenders can provide a decision in less than a day, light years faster than the days or weeks it could take a traditional lender to do the same. This is all done with minimal paperwork – in many cases, all you need are your driver’s license and recent bank statements to get started.
No matter your circumstances, online business lending is within reach. Small business owners with bad credit, or those who have only been in business for a year, can still find a loan that meets their needs. The same lender might also offer different services like merchant cash advances.
Whether online or over the phone, this new generation of business lender is setting a new high standard for customer service and support in the financial industry.
It can be hard to adapt to the newest way of doing things, and with something as important as your small business finances, a level of caution is completely logical. That’s why QuickBridge is dedicated to serving small-business owners with the integrity and respect they deserve, while still providing the resources and convenience they need.