Traditionally when small businesses needed cash to grow, buy equipment or just to make payroll, there were very few places to go – most notably, the bank.
The pain felt when dealing with the big banks of paperwork, slow approvals, and long waits have spurred entrepreneurs into action. There are several innovative companies using information available on the web to help small businesses get quick loans without having to deal with the big banks.
Each online lender has a slightly different approach. Some use receivables as collateral, some focus more on revenues. Either way, these innovative companies providing small business loans are making it much easier and faster for small businesses to get the capital they need.
One of the largest short term lenders Kabbage has loaned $550 million to over 100 000 small businesses. With “on call” loans ranging from $2 000 to $100 000, it can be a great way for companies to lock in a short term line of credit that they can pull from when they need it.
Focused on helping companies grow, Bondstreet requires at least $200,000 in annual revenue and offers loans ranging from $50,000 to $500,000. Their term loans range from 1 to 3 years and therefore are aimed at companies who need capital and a longer payback period
An innovative company leveraging cloud accounting software like Xero and Quickbooks Online, Fundbox provides loans using receivables as collateral. Their loans are paid back over 12 weeks and are designed to help companies overcome gaps in cashflow.
FundingCircle is a peer to peer lender – it connects small businesses who need loans with other businesses and consumers who want to lend. It offers flexible terms and funding amounts, and uses company assets and a personal guarantee as collateral.
Have you used any of these online lenders to help your business succeed, or used other lenders not listed? Let us know in the comments below.by