What are online business loans?

05

Jul

What are online business loans?

posted by: Jason Hulott

Finance is the lifeblood of business.

That’s an often-expressed sentiment but what does it actually mean and how does it relate to online business loans?

The mythology of business loans

Once upon a time, a business going to the market for a loan was often considered to be an indication that it was entering stormy waters.

Of course, that can be the case even today, but much more commonly, organisations seek online business loans for what might be termed predominantly constructive reasons including:

  • funding business growth and expansion;
  • developing new product ranges;
  • diversifying the business and changing its strategic direction to reflect evolving market forces;
  • overcoming a short-term and entirely unpredictable cash-flow challenge;
  • recruiting new talent necessary to drive the business forward;
  • upgrading IT systems; etc.

For any of the above reasons and many others like them, the leadership of a business may decide that a capital injection is required. They then turn to online business loans as a method of quickly and efficiently obtaining access to such capital.

What’s needed to secure finance?

The answer to the above question depends mainly on how you would prefer to go about things.

You could, of course, choose to go down what might be termed the “traditional route” of opening up discussions with a bank. In that situation, typically you’ll be asked to:

  • prepare lots of formal documentation;
  • make an appointment;
  • have a meeting to discuss the ins and outs of your application;
  • possibly, submit additional information in support of your requirements; and, then finally sit about for what might be a considerable time waiting for notification of the bank’s decision.

Alternatively, you could seek online business loans through Cubefunder.

There the information we require will be as minimal as possible, and our engagement will typically be conducted with you electronically.

You will though, need to provide us with the information required to enable us to assess your application quickly. Amongst other things we’ll be looking to see will be:

  • information that identifies both you and your company;
  • an explanation as to the purpose of the loan. This will enable us to confirm that it is for a business, as opposed to personal reason;
  • enough data for us to perform a company and consumer credit check to be clear that we have a thorough understanding of the type of solutions that may be best suited to your given situation.

The importance of speed

It is probably stating the obvious, but we live in a business world where speed is often of the essence. Long delays, as the potential lender sits around thinking about life, might mean that you miss your business opportunity entirely.

That’s why online business loans can be so important. The speed of both application and decision-making is such that it supports the very nature of modern business timetables.

Summary

In some cases, fast access to liquid capital can make the difference between success or simply marking time for a 21st-century business.

That’s why it might be advantageous for you to find out more about online business loans sooner rather than later.