“Risk more than others think is safe. Dream more than others think is practical.” – Howard Schultz
Online lending options have recently become incredibly popular in the marketplace. The reason is that traditional banks usually refuse to approve small businesses for loans.
Online Lending Marketplace
According to the Harvard Business School Working Knowledge blog, banks gave loan approval to only 14% of small businesses in 2015. Moreover, a Harris Poll in the Wall Street Journal revealed that 19% of small-business owners didn’t invest as they couldn’t get a small-business loan.
Having been in business for less than 2 two years, having a credit score less than 640, and being in need of less than $250.000 makes it rather challenging to get capital from a traditional bank.
Happily, there are alternatives to bank-installment loans. Based on the Harvard Business School statistics, the total amount of small-business bank loans went down by 3.1% in 2014, while small-business online lending doubled.
As a small-business owner, you can apply for an online lending option and get a perfect opportunity to grow. First American Merchant offers exceptional loan options to businesses, regardless of their credit. With FAM, you can get approved for a small-business loan, including cash advance.
Small-Business Loans Online
Here are helpful tips for navigating online lending options:
- Business Finances Vs. Personal Finances
Keep your personal finances apart from your business ones. Paying invoices with personal checks or credit cards makes your audit overcomplicated. Manage your finances under your business name by having a separate bank account and credit card.
- Compare Lenders
Research prices, services and other qualities offered by lenders. Compare your options and take into account customer reviews, as the lowest-rated loan option might prove to be the wrong fit.
- Focus On Fees
Don’t ignore the fine print of your loan application. Pay attention to loan fees and rates, interests and originations. Focus on hidden fees.
- Keep Your Personal Information Safe
Security is of huge importance. Make sure the company is legitimate. Send your financial information only via a secure website connection, using https://. Be skeptical about lenders that charge an immediate down payment or an upfront application fee before you’re approved for a loan. The overall repayment plan offered by reputable lenders includes all kinds of fees.
- Use Online Accounting Software For Audit
Such digital tools as FreshBooks, Xero, and QuickBooks provide efficiency and accuracy for managing your finances. Use them to track your finances easily. Kabbage offers excellent automation to connect your online accounting software for business health evaluation purposes.
- Provide Solid Business Records
Make sure your finances are in order, confirming you have a viable company and can make the necessary repayment. Ensure you have a registered business name. Incorporate your business with a tax ID number and a business checking account.