Not all business loans from a bank will allow the funds to be used for e-commerce purposes but fortunately, the new online lenders can approve loans for e-commerce transactions. Today a business can apply for eCommerce business loans www.merchantmoney.co.uk/e-commerce-funding/ just as easily as other business loans and both can be done online with no need to make and wait for an appointment with a loan’s officer.
Traditionally when a business owner needs a business loan, they have had no alternative than to go to a bank. Although banks do often approve these loans, they can take several days to approve and even if the business owner needed the money in a hurry, as the banks had a monopoly on this type of lending, the business owner would just have to wait till the bank was ready.
Today with online loans the process is much different and many think far better. Now when a business owner needs a business loan, instead of calling the bank for an appointment, they merely go online and apply for the loan they want. The online lenders provide a result on an approval for a loan within 24 hours, sooner than even a bank appointment may have been. One of the reasons why these loans can be approved so quickly is because there is far less red tape and documentation than a bank process requires. The decision on whether or not an online lender approves a loan will very much depend on the recommendations offered them by their patented financial risk software. A bank on the other hand has to await a meeting of bankers to approve each and every loan.
With amounts available to borrow ranging from up to $150,000 and sometimes as much as $500,000, the online bankers are rapidly receiving a growing number of requests from businesses that would usually have relied on their banks to approve the loans. It is also generally thought that the online lenders seem more personal than the stiff and proper staff of a bank, making for not just a faster service but also an all-round better experience.
It is not really surprising therefore that these online lenders have been met with a great deal of attention from many businesses and that success and attention will probably continue to grow. As to whether this challenge to the banks monopoly on business lending will prompt them to try and streamline their procedures is yet to be seen but if they do not; they can expect to lose a great number of applications for business loans which they may have received when they had a monopoly.
An additional benefit that some business owners have found with applying for a business loan online is that they do not have to provide such an intrusive amount of business documentation for the loan to be approved. When a business needs a loan, often they need it now and not in a few days’ time in order to make the most of a business opportunity that has arisen and so a 24 hour approval is far more beneficial.