In searching for loans to start your small business, the first thing that you might look for is a bank loan. This is the only reliable option that you know. Sadly, bank loans are expensive and the payment scheme is not necessarily convenient.
When presented with the idea of online loans, you might say no to it right away. For you, online loans are not to be trusted. You immediately think of loan sharks or payday loans where the interest rates are extremely high.
Before you close your doors to the idea of online loans, you have to understand that the options have expanded now. In fact, there are a lot of online loan firms that can give you better rates, terms and conditions than banks.
Next time, when you bank loan application gets rejected, you don’t have to worry. You just have to go online and the best options are waiting for you.
Longer term loans
There are online loan firms where you are allowed to borrow a huge amount of money that you can pay over a longer period of time. This is usually between $25,000- 500,000. This means that the amount that you can borrow is enough to jump start your business. The interest rates can be as low as 7% and the payment schedules may also be flexible. You can go for daily, weekly or monthly schedules, depending on your convenience. It also depends on the strength of your business and your credit history. If you are comfortable with the idea of long term payment and you can guarantee that you will, these loans are a good choice.
Borrow money whenever you want
Another reason why you should go online is that there are options where the amount is always available for you to borrow. You just have to get whatever you need for your business and the interest rate that you will pay is only for the amount that you have withdrawn. It is just like having a credit card. You have a maximum allowance, but you only pay for the amount that you have borrowed. The good thing is that whenever you need money for your business, the amount is just there.
There are online lenders where you don’t borrow the money you need for your business, but the equipment you need. For instance, you might need new machines for production. The lending company will supply you with the machine that you have specified. The item will also serve as collateral. In the event that you can’t repay the loan, the item will be taken from you. Interest rates are at 8-30% with the possibility of monthly loans payment. Although it is cheaper to buy the equipment right away, you might not have enough money. Therefore, it delays the business operations. With this loan, you can get started immediately.
Now that you already know what the options are, it is time to give it a try. As long as you partner with reliable companies online, you have nothing to worry about. This expands your options so bank loan rejection won’t be devastating anymore.
Featured and 1st image courtesy of kdshutterman / freedigitalphotos.net
2nd image courtesy of Stuart Miles / freedigitalphotos.net