Funding for Small Businesses

Many of the traditional main street banks rely heavily on the money they make by offering small businesses loans when they need them however, their loan procedures and approval ratings for these loans are lengthy and low but even so, the banks today are receiving fewer requests for these types of loans than they once did. The reason for the fewer requests is because many small business owners are opting to apply for their business loans online at websites like the one by Funding Wizards.

When additional small business funding is required, many small business owners are learning that if they apply for an online loan of this type, they have more chance of approval than they would if they applied to a traditional bank and that they would actually have access to the additional funds faster too. This is forcing the main street banks to seriously look at their procedures as if they don’t they could find themselves with a growing decrease in profits as the online lenders continue to increase in popularity.

There are many reasons why a business may need a small business loan and many of those reasons require that the additional funds are made available as quickly as possible and that is perhaps one of the main reasons business owners are turning to the internet for their funding needs. Another reason is that the online lenders rarely require full financial background checks to be carried out by the borrower before approving the loan and this too makes the process quicker. In addition to this, online lenders rarely ask for collateral which is something that a bank may always ask for and yet be difficult for a business owner to provide.

The websites that offer these types of loans have numerous lenders on their books, all of which are prepared to provide loans to businesses with little if any assurances, just terms on which the loan is to be repaid. Once a business owner fills in an online loan application, which they can do at any time night or day, indicating how much they would like to borrow, what purpose they would like to make the loan for and how they propose to repay the loan, the website links the business owner to a suitable lender and the loan is approved. This, of course, saves a lot of time and allows the business owner to be able to get access to the additional funds they requested sooner.

One other reason why many business owners are requesting additional funds online instead of from a traditional main street bank is that of the online lender’s high loan approvals with 80% of all small business loans being approved and approved within 24 hours. These online loans have few restrictions provided that they are for a sum between $20,000 and $200,000 per loan but often a lender will extend a loan when or if necessary, giving a business owner still more benefits than traditional banks might.

Online Business Loans

Today online business loans are becoming increasingly popular with small business owners and the reason why is that they are quicker and often more easily acquired. Online lending companies like Funding Wizards are able to make these loans easier to acquire by having dozens of lenders on their books and so when a business owner applies, online, for a loan, it is just a matter of connecting them to an appropriate lender.

The lenders that these online companies use are not too interested in collateral or stringent financial background checks; they merely want the opportunity to lend out money at a reasonable rate of interest. This, of course, is very beneficial to small business owners that often would rather not go through the rather stringent financial background checks which the traditional banks insist on. Plus, as there are not a lot of checks needed, the loans can be approved far quicker, making the money available to a business owner as soon as possible instead of the usual 3 or 4-day wait which most banks impose.

Although not banks, these lenders are still prepared to lend business owners from between $20,000 and $200,000 as required, usually without collateral or guarantors. Even loans for these higher amounts are still approved within 24 hours and to make them even more convenient, they can be applied for online 24/7. Often when an owner needs a loan, they will need as soon as possible and so even if they know a bank would approve their loan request, they still apply online for the loan as they will have the finances available to them far sooner.

Most businesses, large or small will need a business loan at one point or another and although the banks have been the traditional place for owners to go for those loans unless the banks re-organize their lengthy loan procedures, online lending will become the provider of more loans than the banks. The banks, due to the threat to their business these online lenders pose, are now re-evaluating their procedures and so soon they may also be able to provide loans faster but currently, with their insistence on financial background checks, banks are rapidly losing customers to the online services and more business owners are receiving loans that would be if only the banks were doing the lending.

Regardless of what a business owner may require the loan for and what period of time they would like to have to pay back the loan, the chances are that the online lender will have someone on their books that is prepared to make the loan under the conditions that the business owner would like and so a loan is quickly approved. Current statistics show that on average, 80% of small business loans applied for online are approved, the vast majority without any collateral and within 24 hours. Therefore today, an increasing number of business owners are turning to the internet for their loans rather than waiting for an appointment with a bank’s loan officer.