Choosing an Online Business Loan Resource
Many business owners today are looking for business loans due to the difficult economic environment. With the increase demand for business loans many new websites are popping up to address the demand. This article addresses some of the more popular business loan resources available on the internet.
An article was published yesterday about crowdfunding featuring a company called SoMeLend, a relatively new platform in the space. For people that are unfamiliar with crowdfunding, it is a platform or website that connects business owners and entrepreneurs with investors or people with additional working capital willing to contribute to a business loan for a business or idea. Those people might be friends or acquaintances, or somebody just looking to invest.
An individual looking for a business loan creates a crowdfunding campaign. The idea is that once somebody contributes to the business loan others will follow. In the case of SoMeLend, the founders believe that friends or people connected to the individual or the business seeking financing might be willing to support that business. There are different strategies for creating successful campaigns so if you are looking at crowdfunding as a source for funding you should be prepared to do the research and the work necessary to launch a successful campaign.
Peer to peer lending is another online resource for acquiring a business loan. The difference between crowdfunding and peer-to-peer lending is the latter connects one individual to another whereas the former connects multiple people to one. The Lending club is one example of a peer lending network that matches a borrower and a lender.
Probably the most popular resource for acquiring business loans online is the merchant cash advance companies. This type of lender pools private money and utilizes those accounts to fund small to medium sized businesses. What makes a merchant cash advance so popular is that credit history is not a major factor when approving an applicant. Secondly, this alternative to traditional business loans can be made available in a matter of days so companies that require immediate cash can look to this resource.
All of these lending products feature different funding ceilings and minimums as well as rates. What separates them mostly is the technical work required to receive those funds. Peer to peer lending generally involves a little bit of technology as a borrower has to post a profile and loan package on a site to acquire offers. Crowdfunding requires even more online input as you have to create a campaign and get noticed. There are many online resources for creating crowdfunding campaigns. The merchant cash advance is the easiest online financing to acquire. You fill out a one page application and provide the supporting documentation. You can even mail your application and documents if you are not embracing technology.
All three business loan options should be looked at when attempting to apply for a business loan. Each one has its pros and cons when it comes to available loan amounts as well as the technical work required to obtain the business loans. The internet makes business loans available you just have to do the research to see which one is right for you.