If you are allergic to loans but you need to have one because you do not have cash in your pocket right now, it’s really smart to ask whether or not you should get a loan. And if you are a businessman, it is even smarter to ask if you should get a business loan. This is especially true if the only source of loan you can have are those from online small business loans.
Are Online Small Business Loans Expensive?
Make no mistake about it. These loans can be expensive. How expensive? The interest rate is actually equivalent to that of a credit card cash advance loan. If you have ever taken out a loan from your credit card, then you already know how expensive the interest rate is. And when you compound the interest, it will actually be the end of you. So, to answer the question if you should apply for online small business loans, that really depends on two things. One is if you have no other choice but to get that kind of loan. The other is if you can actually repay your loan. You already know what the interest rates are. Now it’s time to do the math on whether or not you can afford it.
Searching for a Small Business Loan Online
If you search for “online business loans”, you will see that there are many lenders out there that offer these kinds of loans. It’s safe to say that there are more of them than there are traditional banks. However, do not let their numbers fool you. These lenders are not your friends. Although they are convenient, it does not mean that they would be willing to give you a loan easily.
Low Approval Rates
I recently read an article where it said that the average approval rate of an online lender is just about 39%, which is really low when compared to the approval rate of banks, which is about 59%. It is entirely possible that when you apply for a loan, you will not get approved.
This is the reason why, if you are in the market for online business loans, you should send an application to at least three lenders. If that is too much of a hassle, there are portal websites out there where you can just send your loan application one time and that application is going to be sent to the lenders in the website network. If you think that is convenient, well it is!
The Benefits of Using Online Lenders
Even when they charge high interest rates, the good thing about online lenders is that you don’t need to submit documents or at the very least, not that many documents. Also, it is entirely possible that you can get approved and get money from several lenders all at once. This is very important as it means that you can choose from several lenders, and you can get the best terms and interest rates. So, when you’re ready, apply for that online small business loan right now. Applying for a loan is easy enough to do, after all.