Many businesses need business loans but due to their type of business, like e-commerce, getting a loan from a bank has not always been easy. That is until today as today there are online lenders like www.merchantmoney.co.uk/e-commerce-funding/ that will provide businesses with business loans even if it is for business carried out online.
These new style lenders not only provide business loans for e-commerce as well as regular businesses but they also approve the loans much faster than banks. Banks will generally take a couple of days looking at a loan request before finally deciding as to whether or not to approve it. This can be a little annoying to some businesses which need the funds in a hurry in order to make the most of a business opportunity which has a risen. These new online lenders however, only take 24 hours to approve loans, making the funds available much sooner than a bank would. Also, in order to acquire a bank loan you would normally have to make an appointment which may cost another day but with the online lenders, you merely apply online as you need to, once again saving precious time.
Unlike banks which may have a board that meets once or twice a week to approve loan requests, the online lenders use software which evaluates a business’s potential and approve the loan in accordance with what the software recommends. This online method is much faster but of course it does have an element of human interaction as someone must first decide if a request is worth testing on the software but either way a business owner will know if their loan is approved or not a lot sooner than they would had they gone to a bank.
Perhaps unusually for online transactions, many of the business owners that have already received one of these online loans, have said that the responses were much more personal than they would have been had they gone to the bank. This means that online loans for businesses can be approved faster and with a better level of personal service than a business loan from a bank. It is therefore no wonder that an increasing number of businesses are now preferring to seek their loans online and avoiding the red tape which banks seemingly thrive on.
Online lenders will of course never fully replace banks when it comes to business loans but they are certainly succeeding in breaking the banks monopoly on business lending. With banks no longer having a monopoly on business lending, perhaps they will at last try to cut some of the red tape to ensure that someone requesting a loan can receive approval faster and perhaps even with a more personal touch. Even then though, it is doubtful that the banks can make their loan process as convenient or as fast as the online lenders can. There are of course limits to what these online lenders can approve loans for but those limits are relatively high, $150,000 or even $500,000 in some instances.