As a small business owner, have you had to pull cash and credit from every available source just to keep your business up and running? If so, you’re not alone.
Obtaining a bank loan or credit line is difficult and can be a long, drawn-out process. For banks, small-dollar loans aren’t economical, and therefore, aren’t worth the time or hassle. Yet they are exactly the type of loans that most small businesses need. That’s a formula that for years hasn’t added up, as many failed entrepreneurs know all too well.
Online lending has changed the game for this previously underserved market. In fact, former Treasury Secretary Larry Summers predicts that online lenders could eventually capture upwards of 70 percent of the small business sector. That’s good news for business owners like you.
For borrowers, the process couldn’t be easier. Just fill out an online application that generally takes less than an hour to complete. Within hours, the lender will send you a response – and you can be funded within a matter of days.
We’ve put together a small list of online lenders that are eager to come to your aid. While they may have a different business model, they’re all eyeing the same market: small loans of four to six figures that banks and traditional lenders don’t have time or patience for. It’ll be interesting to see how the banks respond to the rise of online lending, but while the banks sweat it out, utilize online lending to your advantage. They’re here to help.
Fundbox offers business owners a simple way to fix cash flow by advancing payments for outstanding invoices.
BlueVine also advances funds against invoices and helps business owners streamline their cash flow.
Kabbage gives you the security of working capital whenever you need it. Draw against your line of credit, as often as once a day, for anything you need to grow your business.
OnDeck delivers true small business financing solutions using OnDeck Score® technology, which focuses on the health of the business – not just a personal credit score.
LendingClub offers small business loans up to $300,000 with low fixed rates starting at 5.9%.