Small Business Loans

Small business loans that can be obtained online are usually provided to inject money into existing small businesses in order to finance expansion, growth or for regular day-to-day activity and expense management support.

Monitoring, evaluating and accurately calculating current and future expenditures can be a very challenging task for many business owners.
It requires careful financial planning and foresight regarding future budgeting needs.
However, even the most talented entrepreneurs and managers can sometimes find themselves in an urgent need of cash, especially in a volatile economic environment.

Additionally, traditional banks are not always serving small business customers in an effective way and in many cases, obtaining credit from them can be difficult if not impossible.
Online direct lenders, offer a viable alternative to those that can’t or don’t wish to apply for a loan through the conventional banking system channel.
Private, nonbank lending services that operate on the internet, are an accessible source for immediate funding.
These types of web based platforms fundamentally change the way many small businesses in the U.S. access capital.

Private online lenders offer several key benefits to business borrowers, such as:

• Quick and easy, paperless, no-obligation application.
• No red tape or bureaucratic hassles.
• A more transparent process.
• Same day approval: speedy decision with no lengthy waiting period.
• Next day deposits: funding in as few as 24 hours.
• Easy to understand terms and conditions.
• Competitive rates.
• High approval rate.

On top of all of the above, it’s known that banks usually impose very strict requirements to get a loan, like high credit scores, endless stacks of financial statements, tax returns, projected income statements, business plans and other types of confusing paperwork that needs to be submitted and sometimes takes weeks to process.

Private online lenders are more efficient and they look at other criteria as well in order to evaluate a small business application. Factors like time in business, average monthly revenue, transaction volume, Better Business Bureau rating and consumer reviews on social media websites like Yelp and Facebook are all considered before making a decision, so in many cases, even if a business has just an average or even bad credit history, it can still have a decent shot.

Common Loan Applications

A small business loan can be used for several common uses.
Here are a few examples:

• Buying equipment and supplies
• Facility remodeling, repair or renovation
• New location expansion
• Office space
• Unexpected or emergency expenses
• Refinancing, consolidating or paying off debt
• Long-term business expansion
• Hiring new employees
• Working capital
• Purchasing inventory
• Marketing and advertising campaigns
• Cash flow management and everyday operating costs
• New service addition
• Starting a new business

How Fast Can You Get Approved?

Many unsecured small business loan platforms work quickly and offer near instant approval, which means that their credit decision can be given to the customer almost immediately, within seconds, minutes or a few hours at most, usually by email.
Working with companies that are able to review your loan request the same day is a huge advantage that can save you a lot of time and hassle, because you can know what loan amount you qualify for right away.
It means that the whole cycle, that includes completing an online application, being approved, processed and even getting the actual funding can be finalized within one day.
These quick money transfers and direct deposits often allow the borrower to get the money he needs in 24 hours, something that can be quite useful.