If you are in the market for online business loans, you should know that there are many lenders out there that provide this kind of product. The only question is, which one should you submit your loan application to? In this article, we are going to walk you through the process of an online loan application, so you will know what you can do right now to get this source of funding.
If you are wondering just how many online lenders there are, the only thing you need to do is go to Google or another search engine and type in the words “online business loans”. It is safe to say that the number of lenders offering this loan product is over 100. If that’s not a lot of lenders, we do not know what is.
Before sending your application, however, there is something you need to know about online loans. People get them not because they are cheaper than bank loans. They get them mainly because of convenience. With bank business loans, you need to submit a host of different documents. Also, you need to be creditworthy and have high credit scores. Being creditworthy or having a high credit score is not something that a lot of businessmen have. And so it goes. Online lenders have become the norm.
How Expensive Are Online Business Loans?
How expensive are online loans? They cost twice as much as bank loans. Actually, their interest rate is equivalent to that of a credit card loan. If you think that is expensive, it is, and this is the reason why no matter what you do, you should apply for loans with banks first before anything else. The high-interest rate of online loans will kill you. Also, online lenders are actually not that willing to extend loans to you. In a recent survey, it was found that the approval rate of online lenders is 39%. This is much lower than banks where the approval rate is 59%.
Sending in Your Loan Application
When it comes to sending your application, you can do it in two ways. One is by sending an application at a time to different lenders. You could also send your application one time to a portal website and that portal website is going to send your application to different lenders. No matter how you send your application, however, it is going to be processed in the same way. The lender is going to approve your loan based on a certain algorithm that is built into the website.
So, it is entirely possible that your loan application will not even be seen by human eyes. It is really a sad state of affairs, but that is the price you pay for convenience. If your application does get approved by several lenders, do not be quick about going through with your application. Read the terms and conditions of each loan product first and make sure that you will be able to repay the loan at the loan’s due date.