Business Loans without Security
When a business looks for a business loan, they will usually be asked for security or collateral of some kind but with the new type of business loan available today, collateral may become a thing of the past. Online lenders are now offering business loans with no assets needed as security and they are rapidly becoming very popular among the business community.
A business loan is a necessary part of any business with most businesses requesting one at least once, if not regularly but in the past, they have always had to furnish a bank with collateral in order for the loan to be approved. The online lenders ask for no collateral and still are able to approve the loans much faster than a bank would.
When a business needs a loan today, all the owner has to do is go online, fill in a request which will take about five minutes, and receive approval within 24 hours, allowing the business owner to go ahead with their chosen plans. This can be very beneficial as sometimes businesses have to make the most of a moment and a delay in financial support could make them lose out on an opportunity that arose. With a more traditional, bank business loan, the business owner would first have to set up an appointment with the bank’s loan officer, provide collateral at the meeting and then still wait three or four days for approval. Of course, in some instances by the end of all of that, the benefits of the opportunity may have passed and the business missed its chance for advancement.
The online lenders do not of course have seemingly limitless funds like banks seem to have but they can still offer regular business loans of as much as $150,000 and exceptionally as much as $500,000 which is usually sufficient for most businesses in a single loan. Just like banks though, these online lenders may allow for later top-up loans to further assist a business financially.
Although with a bank a business owner will usually have to go to the bank in person whilst with an online loan they just complete the transaction online, many businesses which have already taken out an online loan have said that the level of customer service offered with an online loan is higher than that usually offered by a bank and they treat clients with a more personal touch instead of just the corporate pleasantries used by banking staff.
It is perhaps due to the fact that in the past banks have not had any viable competition when it comes to business loans and so they did not have to concern themselves with such trivia as customer service or speed but now, with online lenders presenting a viable alternative for businessmen, banks may start to review their business loan practices or face losing a large percentage of their once guaranteed client base, such is the way when one party loses its monopoly on anything.