Every business needs funding for working capital, asset purchase, or expansion. However, funding from conventional financial institutions can be challenging, especially for small businesses. You need to partner with institutions like Advance Funding that offer loans to such businesses. So, why should you opt for the latter and not the conventional banks? Here are the reasons:
Convenience
Most of these same-day lenders offer their services online, meaning you can apply for a loan and receive it in your bank account without leaving your business premises. This makes them the best option because the process doesn’t entail paperwork, which can be time-consuming. In addition, you can apply for these loans at any time of the day. This feature makes them the best option for your business’s emergency funding.
Round-the-Clock Availability
Unlike conventional banks, you don’t need office hours to get the services. You can make inquiries at any time and get the information you need. For instance, online lending companies offer free consultations to help you make informed decisions when you need funding for your business. This makes these lending companies efficient when you are confused about the type of loan to take and have no time to visit a financial advisor physically.
Quick Approval
Your business will most likely need emergency funding to help with cash flow. Going for such a loan from a conventional bank might not be a wise decision. The banks will do a background check to determine your FICO score, which will not only derail the funding but can lower the amount you receive if you have a poor credit score. That’s why you need these online-based lenders. They don’t run the hard checks and fund you within 24 hours. This quick funding ensures that your business isn’t affected.
Great Rates
These lenders also have great rates compared to conventional financial institutions. Their rates are comparatively lower because, unlike the other lending institutions, these lenders have low overhead costs that drive the interest. These lenders are also transparent about these rates, and you can’t expect to pay more than what you agreed on when receiving the loan.
Flexible Payment Terms
Online same-day loan lenders have flexible payment terms. You will pay through the bank you received the money on your next pay period since the lender will deduct the payments in agreed installments. This is a stark difference from other lenders because you have to pay within a short time after receiving the loan. Meanwhile, you continue to work with the capital they provided for your business.
No Collateral Needed
Borrowing from some financial institutions requires funding for collateral, such as your house. Others need a cosigner that will guarantee the loan. Online lenders like Advance Funding are different. You must provide a certain number of latest bank statements, prequalify, and get the loan. This helps your business since you won’t need to give your assets as collateral.
Loans are essential in business funding, especially to help cash flow or buy an asset. However, small business borrowing from conventional banks may find it challenging to access the loans. Therefore, it would be best to borrow from online lenders who don’t run hard background checks and approve the loan within 24 hours.
