Independence Day: The perfect time to highlight business online lending. Even before the first Independence Day, small businesses have been the backbone of the U.S. economy. In fact, many of our founding fathers were business owners: George Washington, Thomas Jefferson, Benjamin Franklin and Alexander Hamilton, to name just a few.
Today, loans to small companies are considered a barometer of economic growth. And loans wouldn’t be possible without financial institutions. Throughout U.S. history, banks have been the primary lenders to entrepreneurs and today, businesses have more loan options than ever before.
Hi-Tech Loan Capabilities
The new options have come about because business owners want more speed and convenience when applying for loans. First to offer these options were alternative online lenders. But now even small community banks provide online loan applications, thanks to partnerships with secure technology partners. Online loan platforms allow busy entrepreneurs to apply 24/7 and receive a decision in days.
When small businesses apply for an online bank loan, here’s what they can expect:
- The need to have key documents at the ready. These include tax returns, business financial statements, equipment invoices, etc.
- The need to provide COMPLETE information – providing too little forces the bank to get in touch with you for answers, which slows down the approval process.
- Ease of use – Because the technology provider has fine-tuned its process, customers are surprised at the clarity and simplicity of the loan application.
- Speed of decision-making – If all of the information is provided, loans can be approved in one to two days. In fact, it’s not unheard of to receive approval in a few hours.
Hi-Touch - The Start of a Relationship
Besides providing hi-tech platforms, community banks also offer a hi-touch approach, which small businesses value. That’s because bank relationship managers can help customize the loan for the business’s particular need. For example, a company looking to purchase equipment may assume they need a line of credit, when actually another kind of loan would be more beneficial for their needs and financial situation. By clarifying this ahead of time, the customer can help the online system match the purpose of the loan to the correct product.
Our founding fathers built their businesses on hard work, relationships, and access to capital. Today’s business owners have the added advantage of technology, which, combined with the support of a banker, will allow them to remain the backbone of the U.S. economy for many years to come.