In these days and age where online business is growing and expanding at a rapid pace, getting a business loan from an online lender is as easy as ever, but what undoubtedly still hard is of course landing an instant business loan from your various lenders out there. It’s one thing to get it immediately and another to wait days for the funds to arrive.
But there’s no need to worry for you young entrepreneur out there looking for funding to start their business, here we have a list of everything you need to know to increase your success on landing an instant business loan in 2021.
Increasing Your Chance of Landing an Instant Business Loan
One of the most important part in landing an instant business loan is to understand what you as a borrower wants to get out of your business. Just this alone will tremendously boost your chance of getting an instant loan thanks to the lender believing that you are someone that’s worth funding to.
But of course, that’s not all, there are other factors like below that weigh in their decision funding your business or not
Work out the amount you want to loan
It’s common knowledge that if you’re looking to borrow or buy an asset for someone, knowing how much of it you need is always a good look as to whether or not they’ll want to sell or lend it to you. However, if the reason you’re borrowing is to cover a potential cash shortfall, it will make them less agreeable to fund you.
Calculate whether or not you can repay
The length of your loan will play a big part in your repayment amounts. Your of course will outline the different terms and options in detail, but knowing what you can afford to repay each month will be very beneficial before you have this conversation with your lender.
READ : INSTANT APPROVAL LOANS
Pick your poison. Secured or unsecured?
A good business man knows what he wants out of his business. So, you’ll usually be able to choose whether you want your loan to be secured or unsecured. Either options come with different pros and cons such as:
- You offer an asset or an item of value for the loan.
- Lower interest rates in general compared to unsecured loan.
- If you went into default or unable to repay the necessary amount, lender may sell your asset to recoup their investment.
- You don’t need to offer an asset to your lender
- High interest rates compared to your regular secured loan
- Getting approved for it to begin with is even more difficult considering the qualifications like credit score and such.
Another poison, fixed or variable interest rate?
As it is with other types of loans, you will have the choice between a fixed or a variable interest rate for your instant business loan. A variable rate is often times preferred if you’re confident that you can repay the loan even if the rate increases. Thus, a fixed rate is an option that will be helpful if you’re looking for managing your cashflow for the better by providing certainty with your repayments.
Understanding the fees and charges
Make sure that you understand the true cost any loan by comparing all the fees and charges that you may be charged for something like:
- Establishment and/or application fees
- Ongoing monthly fees
- Exit fees
- Early repayment fees, etc.
- Get your paperwork ready
Being prepared is always a good idea to increase your chance of landing your loan approved, because after all, people judge others through first
impression, and if the impression that your lender gets from you is positive, it’s very likely that they will accept whatever application you proposed to them.
And that concludes this part of the article about the tip that you can follow to get your instant business loan in 2021. But we’re not done yet. Picking the right lender for your instant business loan can be tricky sometimes, so we also include some personal lenders for aspiring business man out there.
Recommended lenders for instant business loan
Before we go into it, it’s important to note how we choose these lenders in the first place. Well, our evaluation for it is: minimum qualifications, application requirements, speed of approval and funding, as well as costs and repayment terms. So, without further ado, let’s start with number one.
Fundbox as a lender has a very easy online application process, small and simple minimum requirements process, and very quick funding which is exactly what you’re looking for to start your business with instant business loan.
With Fundbox, you can get up to $100,000 for 24 weeks, with a total fee starting at 4.66% with weekly charges. Fundbox is also transparent with its rates and provides borrowers an APR range of 10% to 79%.
Second place in our recommendation for lenders for instant business loan is BlueVine with its short-term, and easy to understand business loans. BlueVine offers flexible repayment options for its borrowers, substantial fund size, and of course the most important part, a same-day funding. With BlueVine you can kickstart your business in a day, which of course is why it’s ranked number 2 in our list.
Last but not least is Kabbage in the third place. Kabbage offers a line of credit up to $250,000 that’s best for businesses needing monthly
payments. It’s got a quick application process, and a relatively fast funding of one to three days on a weekday.
And with that concludes this article about instant business loan and everything you need to know about it starting on increasing your success of landing one, and which lender that you should look out for to get that business up and running in a hurry.
That is all from us from now, thank you for taking your time reading this article, and we hope you the best of luck of getting that instant business loan to start funding your business right now. See you next time in another article about financial IQ and advices!