Guide to Online Business Loans: How to apply and Benefits
Jun 08, 2021
Funds serve as a source of resources for any small businesses looking to make a name for itself in the marketplace. Owning a company provides you with the satisfaction of becoming your boss and making decisions. However, although this sounds positive, there is another side of this: the pressure and difficulties of raising funds for the company. Once you have employees working for you, there’s also a fear of doubt and also pressure to make the correct decision.
So, it’s always good to get additional funding for your business, as smaller firms use online business loans to secure funding. But are you concerned about whether or not to use an online lender?
Benefits of applying for a business loan online
1. Paperless Online Application
There is no paperwork to do, and there is no need to fill out lengthy application forms. The application form is available online, and only requires the completion of a few fields. Soft paper copies that are only required for the application must be uploaded electronically along with the form. It allows the borrower to fill out the loan paperwork at any time using a mobile or computer.
2. Repayment Tenure
The repayment options on an online small business loan are flexible, making repayments easy. An instant business loan may be taken out for a period ranging from one year to five years. However, this will differ from one lender to the next.
3. Top-up Loan Program
If the borrowed funds are insufficient to meet your needs, you can obtain additional funds on the same debt through the top-up loan feature for current borrowers.
4. Criteria for Nominal Eligibility
Lenders that offer online loans have certain simple and limited eligibility requirements. In particular, when dealing with banks, the eligibility criteria set by them are challenging for small and medium-sized businesses to follow. They have a method for determining qualifications, which decreases their risk. On the other hand, online loans have the versatility that is not dependent on the CIBIL score or the borrower’s profile.
5. Interest Rates
Business loans are also cost-effective because they come with low interest rates. Once you equate the interest rates charged by online lenders to those charged by conventional lenders, you’ll see that they’re far lower.
6. Collateral Free
The majority of online business loans do not need collateral. This means unlike traditional bank business loans, you won’t have to put up any equity, or provide a guarantor to secure the loan.
Various Online Business Finance Alternatives
Term loans, lines of credit, and invoice funding are only some of the borrowing opportunities available by online lenders. Each one of these funding options has its own set of benefits.
1. Term Loans
In return for funding, term business loans include routine, fixed payments, and interest is paid. Term loans are generally referred to as “traditional” loans.
- The application process is streamlined.
- Interest rates are frequently affordable.
- No equity and sales must be surrendered.
2. Credit Line
A credit line is similar to a credit card. Your company will be given a credit limit, and you will be able to withdraw funds if required before the line of credit is met.
- Allows you to get cash quickly and easily (once approved).
- It gives you financial freedom.
- Pay terms are flexible. You need to pay interest just on the money you’ve drawn out.
Accounts receivable lending is similar to a cash advance, except that you will be selling an item rather than getting a loan. You’ll offer invoices in return for funding in this situation.
- There is no need for collateral.
- The lender assumes the burden of receiving receivables.
- There is no need for up-front collateral.
After examining the benefits and various online business finance alternatives, let’s discuss how to apply for online collateral free business loans.
How to Apply for online business loans?
Online Application: Log on to the FlexiLoans’ website and complete the application form by properly filling in the relevant information. They will use these details to assess your eligibility for the MSME loan.
Upload the required documents online: Upload all necessary documents, such as KYC documents, Current Account Bank Statements, and Business KYC documents.
Credit Analysis: Online lenders will assess your business results and operations to calculate the amount of money you’ll be eligible to borrow, and the interest rates that will be applied.
- Loan Disbursement: They will share the loan agreement after verifying the documentation and approving the loan. The funds are disbursed to the applicant’s account within 48 hours of signing the document.
For companies in need of quick, hassle-free funding, online business lending may be a valuable option. The majority of online lenders, such as FlexiLoans, have a diverse variety of financing options, as well as a quick approval process. They have a range of lending choices, helping you to choose the one that best suits your needs. The entire loan process is done online, saving you time and money while allowing you to apply for a loan from the convenience of your own home or office. So get in touch with FlexiLoans today and give your small business an additional boost.