Small-to-medium businesses are no longer relying on the banks for business loans. Banks are infamous for either rejecting small business loan requests or drowning business owners in onerous paperwork and bureaucracy.
Then along came alternative online lenders, giving SMEs a quick and easy way to get a business loan. Online lenders generally offer flexible terms, unsecured loans, simple application and quick approvals. They are becoming more and more popular in the US and abroad.
With a large number of online lenders now available, it can be difficult to choose the right lender and even just to know who to trust. Business lending marketplaces offer a valuable service, filtering out the top lenders and matching them with your business profile and needs. Just as you would use a flight aggregator to help you make a choice and find you the best flight, you can use a lending marketplace to find you the best loan for your business.
These are the most important criteria that go into choosing the right business lender:
1. Accreditation of lender
It’s important to only get a loan from a business lender that is accredited in the US.
2. Easy application
The main benefit of choosing an online lender is to avoid bureaucracy. Make sure that your chosen lender has an easy application process with little documentation required.
3. Speed of funding
Online lenders generally provide fast funding, often in as little as 24 hours. Banks typically take weeks or even months, so this is an important deciding factor.
4. Flexible loan terms
Choose an online lender that offers flexible loan terms. There are many lenders offering different types of flexible loan products, such as unsecured loans, lines of credit, and merchant cash advances.
5. Loan limitations
Online lenders usually allow borrowers to use the loan in any way, as long as it’s for a business purpose.
6. Approval rates
Online lenders generally have high approval rates for small business loans. Take a look at the minimum requirements for getting a loan. These are usually more achievable when compared to bank loan requirements.
If you do your research, you can find the best lender to suit your business. If you don’t have the time to compare business lenders yourself, you can apply through a reputable business lending marketplace.