Why choose an online business loan?
There are any number of ways you might apply for a business – through a face to face appointment with your bank manager, for example, responding to a flyer, or making an application by post. So why apply for your business loan online?
In practically every instance of course, an online application is the choice for businesses that want a more or less immediate response, fast access to the loan requested, and dedicated support from online and telephone-based agents.
How can I use an online business loan?
Online business loans may be used for a whole variety of purposes – the reasons depend entirely on the specific needs and circumstances of your business.
Some of those business uses might include:
- making good any shortfall in your current cashflow requirements;
- the purchase of essential stock;
- funding an order for essential supplies and materials
- refitting and re-equipping your business premises;
- launching a marketing campaign to promote existing or new product lines and services;
- funding a not to be missed business opportunity before the initiative is missed; or
- generally expanding your business.
How much can my business borrow?
Given the myriad different reasons for which you may be looking for an online business loan, the amount you decide to borrow may vary widely, depending on the purpose for which the advance is needed and the business loan provider you use.
The loan might be as small as just £5,000, for example, or your business might need as much as £100,000 to fund a major project. To all intents and purposes, however, the majority of small businesses are likely to look for loans of around £50,000 or less.
Online business loans typically give you the choice of deciding exactly how much you need to borrow – at a time when conventional sources of funding, including help from national and local government, seem to be fewer and farther between, according to an article in the Telegraph newspaper on the 8th of June 2018.
How long do I have to repay the loan?
Different lenders have different repayment terms, but online business loans are, by and large, short-term borrowing facilities, so look for repayment periods of around 12 months.
\even greater flexibility is achieved if you choose a lender that offers flexible repayment terms, so that you may choose whatever repayment terms best suit your business – anywhere between 3 and 12 months, let’s say.
What if I miss a payment or want to repay the loan early?
Many lenders are likely to charge a penalty for missed payments – and, of course, you are likely to take out an online business loan with full confidence in keeping up with every repayment.
In the reality of a fast-moving business world, however, even the most tightly run small business may encounter the occasional problem or cashflow difficulty that means a payment is unavoidably missed.
Some lenders, therefore, adopt a sufficiently flexible approach to take such a mishap in their stride, by extending the repayment terms by that extra month, without your incurring any penalty charge.
Similarly, the same lenders are likely to be equally relaxed about your deciding to repay the loan early – once again, without the need to pay any penalty.