Considering an Online Small Business Loan?
Friday, March 10, 2017
The lending environment is constantly evolving, which means more options for small business owners. In the last few years, non-bank online lenders have entered this landscape adding more choices, and making it as important as ever for business owners to closely evaluate what each lender offers, including the rates and terms of their products and pricing.
It’s a competitive market for small business credit options, and that’s good for small business owners. When choosing a lender, consider financial institutions that have demonstrated a commitment and track record of working with small business owners at every stage – from those starting up and expanding to those looking to transition or sell their business.
When you’re looking for funding, it’s important to thoroughly research and assess your options. It’s helpful to prioritize those lenders who provide a full array of small business offerings including helping you think about:
- How much money do I need?
- What do I need the money for?
- How quickly do I need the money?
- How long have I been in business?
- What is the current financial shape of my business?
Answering these questions will help determine if you should pursue a government-backed loan, a loan or line of credit through a bank, or a loan from an alternative lender. Consider making time to meet with your banker to learn more about the various financing options.
While numerous factors can impact the length of time it takes to get a decision, the best lenders make an effort to keep customers informed throughout the process. Many small business owners are strapped for time, and are seeking faster, more convenient online lending options at competitive interest rates. With Wells Fargo’s new FastFlex? Small Business Loan, for example, a business owner can complete an application in minutes, receive a quick decision after applying and obtain funding in as little as one day.
Borrowers should look for a loan product that clearly states its terms and pricing upfront. Take time to fully understand how much the loan will cost, frequency of payments and any additional fees associated with the loan.
Obtaining funding for your business may seem challenging, but entrepreneurs have more options today than ever before, but make sure you do your research before making any borrowing decisions.
By Joseph Mishriki, Wells Fargo Inland Orange County Hills Area President
Category: Member News