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The Lendified Blog

 

Why Apply for a Small Business Loan Online?

Acquiring a small business loan can be a challenge for Canadian small business owners - but it doesn't need to be.  Here are six great reasons why you should consider applying for an online small business loan the next time you need access to business capital:

  1.     Save a trip to the branch

Today, getting an online small business loan is easier than ever. 9-5 branch hours can be inconvenient when small business owners are busy managing their business - they are often forced to take time out of their busy schedules to visit their bank. When you factor in transportation time, finding a parking space, and lining up to see a representative, this time commitment takes you away from other priorities such as investing in the growth of your small business. At Lendified, we are here to make this process faster and easier through small business loan applications via smartphone or computer. It’s that simple!

  1. Little to no documentation required

Applying for a loan at a traditional bank is often complicated as you need to gather all your legal documents; examples of this paperwork include proof of income, credit checks, proof of repayment, and a business plan. If any of these documents are insufficient, you will need to reschedule your appointment with your financial advisor. These considerable delays make it tough for small business owners to get the working capital when they need it. With online small business lenders like Lendified, we understand that time is money and your business is a reflection of you as a small business owner. Our alternative lending platform is different - we use our proprietary algorithms to consider the reputation and potential of your business as part of the lending criteria. Our requirements are more streamlined and with little to no documentation required, you are only a few questions away from your small business loan.

  1. Get an answer right away

Traditional banking applications can take weeks to be processed. In many cases, when small business owners’ loan applications get rejected, they are forced to take additional time with another lender to go through the same process. Our Lendified process lets you know instantly whether or not you have been approved for a loan. We understand time is precious for small business owners like yourself and we are here to give you answers right away.

  1. Get your funds as early as the next business day

Often small business owners come to us in moments of crisis or when an opportunity is presented to them, such as the sudden need to replace equipment or for a large working capital to open a new franchise location. Whatever your reasons may be, once you receive your instant approval from an online lender like Lendified, the turnaround time to receive your working capital can be as quick as the next business day.

  1. Flexible repayment terms

The structure of repayment terms varies between contracts. Depending on the conditions you have signed, you may be penalized for paying off debt early - this is called a prepayment penalty and it can often be seen with mortgages offered by banks and “predatory lenders”.

Many online alternative lenders like Lendified offer flexible repayment terms and if you are able to repay your online small business loan earlier than expected, we reward you, penalty-free.

  1. Support the emerging Canadian FinTech Sector

The Canadian FinTech sector is making headlines across the globe with strong tech regions like Ontario’s Silicon Valley North and the growing tech scene in Vancouver.

The Canadian FinTech sector has received tremendous growth and support in recent years from the government and business community alike. For example; MaRS Discovery District recently launched a FinTech cluster that connects financial services with startups like Lendified to develop next generation products in payments, peer-to-peer lending, crypto-curries and more. In recent years we've seen the emergence of conferences and forums that focus on FinTech, for instance, FinTechTO - a one-day conference which Lendifeid President Kevin Clark recently spoke at. Kevin will be sitting on the judge panel at the upcoming 2016 Canadian FinTech awards.

FinTech, alternative finance, and online lending are undoubtedly the future, and quickly becoming an important part of the Canadian economy. Small businesses are the backbone of Canada’s economy and entrepreneurs that want to stay ahead of the curve need to continuously seek out new, innovative partners and solutions for their growing businesses. Lendified’s innovative and data-driven credit model is a prime example; We've demonstrated this through our commitment to supporting Canadian small businesses and entrepreneurs by offering the financial support they need to continue to grow and sustain their businesses.

About the Author: Michelle Pinchev