Even though in 2017 more business is being carried out online than ever before, not all banks are happy in providing a business loan to a business which expects to spend that money online in what is termed e-commerce transactions. However, the new online lenders are more prepared to accept and approve eCommerce business loans 2017 and so they are starting to receive a larger number of loan requests.
It isn’t just because online lenders are more agreeable to e-commerce loans which are making them as popular as they are becoming though, it is also because they offer less red tape than banks and also approve any loans much faster than a bank would. Whereas with a business loan from a bank, you would first have to make an appointment and then even after you have completed that meeting, still have to wait at least a couple of days to know if your loan request has been approved. An online business loan however can be applied for online and approval will be decided on within 24 hours, meaning a business owner is not left in the air wondering if their request will be approved or not.
It has been said by many business owners that have already received an online business loan that the level of personal service afforded by these online lenders is far higher than the impersonal service offered by a bank. It is always nice to have a personal touch to any transactions, even if a loan is not approved, which is not as often as happens with banks. A quick answer to your request for a loan though is very important as timing is sometimes essential in order to grasp a business opportunity which may arise and so waiting for an approval may be an additional expense as the most opportune moment was missed.
Although banks of course have almost limitless funds, the online lenders are not too short of cash either as they can usually offer loans of up to $150,000 and in some cases even as much as $500,000 to a business in need of funds. Just as with banks, these online lenders may offer several different terms for the loans, allowing a business owner some choice in how they wish to pay back the loan. Sometimes a business owner may misjudge the amount needed but the online lenders are not averse to topping up a loan if it should become necessary which can afford the owners confidence for their future ventures.
As the online lenders receive an increasing number of applications for business loans, the banks previous monopoly on them will weaken and this may prompt the banks to start revising their business loan procedures, affording those that apply for loans through them, a faster more efficient response time to the approval of those loans. Banks of course will not go out of business losing this monopoly but as the online lenders become increasingly more and more popular, nor will they.