Are you a small business firm tired of standing in long queues to get your loan? Now is the time to “Kill the queues and stay ahead of the curve” by working with Fintech companies which provide loans to (small) business firms like yours. So let’s explore them.
Online Small Business Lending Firms – Who and What are they?
Online Small Business Lending Firms are alternative lending options to the traditional banking loans for small business firms. For many small business owners and startups, who do not qualify for a conventional loan due to stringent procedures and standard requirements of banks and financial institutions, these lending firms can prove to be a blessing.
How to get a Small Business Loan online?
Advantages of Online Loans to Small Borrowers
- Online Application and Automation involves less paperwork, making the process faster
- Quicker access to funds as the funds are transferred online
- More flexibility in terms of repayment owing to variety of options available
- Access to smaller requirements of funds
- A more holistic approach towards borrowers where credit history is not the only criteria
- Lower search costs
- High liquidity owing to quick disbursals
- Lower probability of rejection
Common Online Small Business Funding Misconceptions
- New firms cannot get a loan
- It’s all about the credit score
- A heartless computer (algorithm) decides whether one qualifies or not
- If one Online Lender denies a loan application, others will follow the trail
- One needs to have a business plan in order to get a loan
- Only the persons, whose loans are rejected by bank can get an online loan
Impact of Fintech
Small Businesses that were typically kept at bay by ordinary banks have found some relief with the upcoming trend of financial technology. Fintech companies like CapitaWorld have had a huge impact on SMEs by making financial aid accessible and affordable to them. Rapid evolution in technology has made it possible for such firms to open new avenues to access credit. With their amplifying speed, transparency and quick loan processing, Fintech platforms are enabling SMEs to focus on their business instead of worrying about funding gaps.
A Concluding Remark
Think of using Fintech companies like CapitaWorld to attend to your funding needs.
Even after getting funding, small businesses tend to make some mistakes that can be avoided. To know about some of these mistakes, click here.