With the spark of new technology has come the invention of online lending. This is spectacular news for small business owners as they no longer have to go through the grueling process of applying for a loan at a traditional bank.
With online lenders, small business owners are able to submit quick applications 24 hours a day, 7 days a week. Decisions are usually made in seconds and those who are approved receive their funding the next day. Let’s take a look at some of the most popular online lenders who will fund small business loans.
This microfinance lender is one of the oldest, as it was established back in the 1990s. Owners typically find lower interest rates around 8.99 percent with a borrowing limit set at a high $1,000,000. Accion typically only lends to businesses that are at least 12 months old and have an on-time payment record.
This company is a traditional offline lender that has expanded into the online lending world. Their maximum loan amount is $150,000 and they require all business applicants to have a good track record for at least one year.
This is one of the harder lenders to get approved by due to their strict standards. Borrowers are required to have a credit score of at least 660, a business that is at least two years old and has an annual revenue of at least $200,000, as well as give a personal guarantee for the loan. Loan amounts range from $50,000 to $500,000 with interest rates falling in between 8 and 25 percent.
This lender specializes in in invoice factorting. For more about what an invoice factoring company is visit this link. Loans are given in amounts up to $100,000. All applicants must have outstanding invoices to apply for this type of funding.
This lender is your best option if your business is fairly new and you don’t have the best individual credit history. CanCapital only requires that borrowers have a minimum credit score of 550, a business that has been operating for at least 4 months, and a minimum monthly revenue in the amount of $4,500. Loans range from a small $2,500 to a large $150,000.
This lender specializes in big loans ranging from a minimum of $200,000 to a maximum of $2,000,000. To apply you will need to enter a great amount of financial information. This loan also requires a phone interview to be accepted.
This online lender is more geared towards established businesses that are looking to expand or increase their cash flow. They offer loan amounts up to $500,000 for business expansion and up to $150,000 for working capital. Interest rates range from 7.99 to 25 percent.
This one may come as a bit of a shock. Paypal has noticed how many business owners are using their online platform to conduct their sales. Paypal will offer loans in the amount of up to 15 percent of a business’s past year revenue that was conducted through the Paypal platform.