In the past, when a business wanted a business loan, they had no choice but to go to a bank which would ask them a lot of different questions about their business, need a lot of accounting documentation and still take several days to make a decision on as to whether or not they would approve it.
When a business owner requests a business loan, often they would like an almost immediate response as the loan may be needed to benefit from an emerging opportunity, one that would need as quick response as possible to be of the most financial benefit. Merchant Money website is the website for an online lender that makes business loans and the site claims to be able to approve loans within just 24 hours, far quicker than most banks.
This is just one of many online lenders that are appearing more recently on the internet and they are providing viable competition to the banks that for a long time have enjoyed a monopoly on business lending. Why they are a viable alternative for business owners to look at when requiring a business loan, is because first, they are convenient, no having to make banking appointments, just apply online. Secondly they offer reasonable terms and like the banks have a variety of options to choose from. Lastly and perhaps most important of all is the fact that the online lenders will give approval for a loan in just 24 hours, compared to the several days a bank usually takes.
Many business owners which have already taken advantage of these online lenders have appreciated the fact that not so many financial records of the business are needed when applying for a business loan online as the online lenders use patented, financial risk software that is able to analyze a business’s future effectively from very little information. Surprisingly perhaps, as these loans are carried out only online, past borrowers have indicated that the level of personal service afforded by the online lenders is far higher than that experienced when dealing with the banks.
With the opportunity to borrow $150,000 or even $500,000 online and have the loan approved in just 24 hours, is of great benefit to many businesses and so although some businesses may still prefer to apply for a business loan the traditional way, through a bank, many are seeking this fairly new alternative loan option.
Businesses will always need business loans from time to time and banks will always be there to offer them but if banks want to maintain their lion’s share of these loan applications, they will probably have to consider streamlining their approach to loan approvals as timing, for many business loans is crucial and with a faster alternative now available, an increasing number of businesses will opt for the online alternative.
These online lenders also cater to the businesses which feel they need a top up to an initial business loan and once again, for these top up loans, approval is being given in less than 24 hours.