Online Loans to SMEs: Why do so many companies choose them?

It is well over when it seemed risky to do online banking. Canadians now trust online services. In fact, in 2015, Canada was the largest Internet user in the world, with people spending an average of 36.3 hours online per month. So, it is quite normal that, given all this time connected to the Internet, Canadian business owners are looking for their funding online.

Aside from the fact that online small business loans are easy to access, there are several reasons why they become the preferred financing system for many small business owners.

1. Security

1. Security

The data submitted when applying for a loan contain extremely sensitive information; it is therefore normal to fear giving this information online. To ensure the safest environment possible, sendan has partnered with DigitalMercs to provide 256-bit encryption and  Secure Sockets Layer ( SSL ) protocol. This means that all information is continuously encoded. If you feel comfortable entering a bank and completing an application form, you should not have to worry about completing the online equivalent.

2. Speed

2. Speed

If you have already applied for a loan with a bank, you certainly know how much paperwork to complete. Online, this process has been replaced by automated software and decision making models. If you have to apply while on the road, you can always complete it on any mobile device. The advantage is that it’s fast, really fast. In reality, the application to sendan can usually be done in less than 10 minutes.

3. Flexibility

3. Flexibility

Usually, the repayment of a bank loan is done by a single monthly payment. This can create a serious problem with the liquidity of a business. Online commercial loans are typically characterized by “micro payments”, which are small daily payments.  The borrower can also customize the repayment terms of his loan to adjust to his needs.

4. Higher approval rate

4. Higher approval rate

The decision process used by online lenders and banks is very different. If you have already applied to a bank and have been refused, do not panic. You may not have met the criteria of the typical typical bank profile. Unlike banks, online lenders take into account many more factors than a few details and can meet the needs of more types of businesses. To find out how much your business could receive, it would be good to review the application process before you need it to be well prepared when the need arises.

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