Banks are no more the go-to option for businesses when it comes to getting your hands on a small business loan for managing expenses and operational costs in the short run. Gone are the days when the bank would be the only option you would head to in the hour of need. Now, with the advent of numerous lending agencies, the horizons have broadened.
There are numerous lending agencies now present on the internet providing convenient loans for businesses looking for some extra cash. These lenders have a different model from that of banks and are run in a diverse manner. Business owners are now shifting towards the convenient option of small business loans, which is why it is necessary that you know the pros and cons of acquiring a small business loan from a private lender.
The positives to acquiring such a loan include:
The biggest point going against banks was that they would take a serious amount of time only to deny you the loan provision. Private lenders do not operate in this manner, as they approve a high majority of the business loan processes handed over to them. They understand just what prompts a business to go for a loan, which is why they have a higher approval rate. Even businesses that happen to have a poor credit history can benefit from the higher approval rate here.
Banks operate only for 8 hours during a day, and you can get in touch with their working staff during these office hours only. In the contrary, most private lenders work around the clock, and can be accessed conveniently at the hour of the day you are willing to get in touch with them.
A private lending agency can work on your demands in a process that is quicker than what a bank would follow. Banks tend to be extremely slow with their loan approval process, which is why you might end up wasting a lot of time in that.
A good lending agency would take as little as over 3 to 4 working days for approving your loan process and delivering the loaned amount to you.
There are certainly some cons including the ones below:
Since online lending agencies offer loans to people or businesses with poor credit ratings as well, they try to compensate for that through higher rates. Since businesses with a poor credit rate might be facing difficulties in acquiring a loan altogether, they might find no trouble in the rates.
Experts say that some of the phony or dubious web lenders can put sensitive financial data into risk. Always try dealing with a private lending agency that is credible and has good ratings.
The pros significantly outnumber the cons in this assessment of small business loans from a private lender.
Categorised in: News
This post was written by firstdownseo