Facing a shortfall in the capital of your business? You will face many problems in your business without any warning. Most of the time, these problems can cost you good fortune.
So what to do in such time?
One of the best choices is to get a loan from a financial institution. Depending on your situation and the urgency of the loan, many several institutions provide different loans.
For example, if your need a short-term loan to meet the shortfalls in your business, you can get them through payday loans.
If you have suffered a major loss and want to take a loan for a longer time, the bank is your partner.
And finally, if you are in an urgent situation where you need same-day e-transfer loans, online loan lenders are the best option for you.
If you own a business and need help to meet the ends, this article will briefly introduce you to the secrets of the loan industry to get quick loans.
As a business, we understand how a business operates, and lacking money is one of the simple and most common issues many businesses face. However, to understand the whole concept of same-day e-transfers loans, you need to understand why they are given in the first place?
Beginning of online loan lenders
Lending and borrowing is an age-old practice that started back in 2000 BCE in the region of Mesopotamia (currently known as Iraq). Since then, in the time span of 4000 years, loans and finances took a major turn and grew rapidly.
Earlier, banks were the only financial institutions that provided loans. Surely there were other ways to get a loan, but most were unreliable.
But in the mid-20th century, when the FICO score (credit score) was introduced to create a stable and unbiased credit system, many banks adopted it and began to provide loans based on the credit score.
You may think, ‘it is a genuine way to assess a person’s creditworthiness, but you might be wrong on that!
Soon after the credit score was seen as a valid point to assess a borrower’s payback ability, a loophole was soon noticed.
The credit score is affected negatively even if the borrower has a valid reason to skip a payment; the reason is not considered.
And because of this, many genuine people were rejected due to faults in their credit history.
Considering this situation, online lenders came and provided loans to people struggling to get approved for a loan from banks.
How do online loan lenders provide loans?
Unlike other financial institutions, online loan lenders do not check a person’s credit history to determine their creditworthiness. Instead, they see how a person’s spending habits and his source of income.
Once they are convinced that you can afford to pay back a loan on time, they offer you the same-day e-transfer loan to the person.
For business people, getting a loan from a bank is sufficient to fuel their business. But sometimes, they themselves run short of cash.
We know, people mostly say, ‘if you have a business, why don’t you take from there?’
But taking a loan from a business is the same as taking a loan from a financial institution. And also, it may impact the financial performance of your business.
So, the next best option is to apply for the same-day e-transfer loan with online loan lenders, such as PrestoCash.
4 benefits of taking a loan from an online loan lender
- We know as a business person, your time is valuable, so to save you time and effort, online lenders have an online application form available on their website, which you can access anytime you want.
- Moreover, they do not have extensive paperwork or check your credit report, saving a lot of time and quickly processing your loan.
- One of the major security flaws in applying with other financial institutions is that you need to submit your ID proof and bank account’s physical copies with the lender.
- And in modern times, when theft and cybercrimes are over the chart, taking a risk to send these documents can be a major concern for your safety.
- Often these items are susceptible to theft and misplacements, which can be problematic for your personal security.
- With the introduction of new technology, online loan lenders use the IBV facility to verify an applicant’s ID and quickly approve their loan application.
- The IBV stands for Instant Bank Verification. It allows the lenders to look into the applicant’s bank account and quickly verify their details and spending habits.
- Online loan lenders have removed the need to check for a credit score. This naturally eliminates the risk of getting rejected due to a poor credit score. Other than this, below are the basic conditions that you must abide by to get approved for a loan.
- You must be of legal age; 18+ to get a loan.
- You must have a stable source of income with $1800 or more as a monthly income.
- You must be a citizen of Canada with an active bank account and a minimum transaction history of 3 months.
When is loan default?
A loan or debt is the default when you are not able to pay back the creditors. The terms you agree to get a loan are void if you do not pay for more than 30 days.
If you have taken a business loan or any kind of loan and fail to pay it back, it will be considered a default. This can severely affect your credit score, sometimes losing as much as 350 points on your credit score.
On the other hand, if you take a loan from an online loan lender, you can make short easy-to-fit budget payments to pay off your debt. In addition, you have a choice to choose the frequency of payments – weekly, bi-weekly, monthly or bi-monthly.
Having a go-to-lending partner creates a sense of security in difficult times. But, of course, you have to try getting a fast e transfer loans Canada from them to build that trust. And once you start indulging in the transaction with online loan lenders, you will gradually build trust with them.