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What Can Small Businesses Gain from Online Lenders

The digital era brings globalization to another level. Almost every service or product is available online which makes them available to consumers anytime and anywhere. The impact of globalization on the economy is huge and it will likely increase in the future. When businesses aren’t bound to borders the economy will grow and globalization will continue to shape it. Well-established companies can expect more customers and with them more profit. But what about small businesses?

Since many businesses will be available online, small businesses may have a tough time keeping themselves active and expanding since most investments will go to the bigger companies since they’re already successful. So where could small businesses get the funding they need? Besides government grants and regional funding schemes, they could try their luck online.

Kickstarter is one example of a successful crowdfunding service for startups online. However, it takes some time to collect investments. A faster alternative would be online lending platforms. One of the benefits of globalization, as mention before, is that all online businesses are international. So if you’re looking for online lending Philippines, Australia, Canada, US or UK platforms you will find them no matter what country you live in. You can get their services too without having to go and meet face to face.

When applying for a loan online small business owners don’t have to meet representatives in person to discuss the details of their business. They don’t have to convince anyone that their business should get a loan. All they need to do is get their documentation in order before putting it online. Banks might not give someone a loan if they have a bad credit rating. This is not the case with online lenders as they give loans to those with good and bad credit ratings.

What Can Small Businesses Gain from Online Lenders - 1

The interest rates are lower than the rates of bank loans but might be higher if you have a bad rating. So if you’re the owner of a small business and you have a good rating you’ll likely receive smaller rates. A thing that you should look out for is scams. Since everything’s available online scammers can easily assume the identity of a lender. Precisely because of this you should do your research before applying for a loan online. Look for reviews, certificates and possibly a physical address.

The final benefit of peer-to-peer lending is speed. You don’t have to fill out an application by hand, then wait for a couple of days for it to be processed and then wait some more to get the money wired to your account. If you’re doing this with a private lending company you’d have to convince a representative of the prosperity of your company. All this takes time both parties don’t have which is why online lending is so popular.

After doing your research, you find an online lending website and you click on it. Then you create an account and fill out an application that you send. After a few minutes, you receive a message that tells you if your loan has been approved or not. If it is then the money might be sent to your account the very same day or the following one depending on the lender.