Banks for many years have enjoyed a monopoly when it comes to business loans and so they have not really tried to improve their service, still making business owners wait days for approval and making every business seem impersonal. This though is all changing as there are lenders breaking the bank’s monopoly. Alternative finance solution or solutions to business loans are being offered online and these alternatives are receiving a great deal of interest from many businesses due to their efficiency and personal service. It is unusual for any bank to give approval for a business loan in less than a couple of days but the online lenders are offering approval within 24 hours from applying, making their service far faster than a bank’s. Added to that, although being carried out solely online, business owners have stated that the online lenders offer a more personalized service than the banks, making the whole process far less stressful and more comfortable and as well as speedier.
Often there are many benefits which can be obtained from having a business loan approved within one day as opportunities, when they arise, have to be seized on immediately in order to reap the most benefits. In the past, whilst waiting for a bank to approve a business loan, the borrowing business has lost the initiative, making the loan less profitable than it could otherwise have been if an immediate response had been given.
The online lenders use a combination of personal instinct and professional, patented software, to quickly be able to appraise a business’s ability to repay the loan on the given terms and so can quickly, within just one day, give approval for a loan. Just because the lender may be online, does not mean that they can only lend small amounts of money as they can in some instances offer as much as $500,000 although more commonly they offer $150,000 which is still not chicken feed.
Apart from receiving a high level of personal service and a quick approval, business owners are also able tochoose a variety of terms on how they wish to pay back the loan and, if necessary, apply for a top up loan at a later date. These online loans are loans which are given in a way business owners like and so they have been received with a great deal of interest and are quickly becoming very popular as an alternative to waiting for a bank to approve a loan request.
Banks of course will not be going out of business due to these new lenders but if they want to still attract a large number of businesses to go to them for their loan requests, they may have to find a way to provide a loan’s approval far faster than they currently do. As an added bonus, most of the online lenders need far less information about a business than a bank does in order to approve a loan, something else many business owners appreciate.