Every year, thousands of businesses are successful in
securing a loan. While some go the traditional route of contacting local
lenders by phone, others take advantage of the technology available to them.
Despite these benefits, many business owners never consider
using the internet to their advantage. There is one primary reason for this:
they don’t know where to start.
Five Steps to Success
Even if you have never considered the idea of securing a
loan online, there are steps you can take to position yourself for success.
1. Get Help
There is a big difference between securing just any loan and securing the one that
is best for your company.
For many, the top way to find the right loan is to rely on a
service that has their best interest in mind. For example, an online business
broker can connect you with a variety of lenders, all of which are willing to
provide you with a loan based on your needs.
You can go at it alone or you can turn to a professional
service. Since you don’t have to pay for help, you might as well look into this
2. Compare Lenders and Loans
You are in a rush. You have other things to do. You don’t
want to spend an overabundance of time seeking a loan. These are the types of
details that can lead you down the wrong path.
If you are in a hurry and begin to believe that all loans
are the same, you may find yourself neglecting the details that matter the most
(more on this below). Unfortunately, this is not always the best approach.
Do yourself a favor and compare a minimum of five lenders
and loans. The information you gather will allow you to make an informed and
3. Ask Questions
It doesn’t matter how you are searching for a business loan,
you have the right to ask questions. Not only do you have the right, but this
is something that should drive your search.
Some of the questions to ask a lender include:
What loan products suit my needs?
Can you explain your approach, as compared to
What is the process for applying?
How long does it take for my application to be
When you ask questions, it won’t be long before you are
receiving answers that shape the decisions you make.
4. Understand the Terms and Conditions
There is nothing more important than the terms and
conditions of a business loan. You must understand exactly what you are getting
involved with. If you don’t, you could sign for a loan that doesn’t match what
you are looking for.
For example, you need to know the interest rate associated
with your loan. Along with this, what is the term? What happens if you make a
late payment? Are there any other fees to be aware of?
The lender you decide to work with should be able to provide
you with the terms and conditions upon demand. If they can’t, if they dance
around this for any reason, it is time to find another lender.
5. Read Reviews
You are not the first business owner to search for a loan.
Many others have done the same, and you need to see what they have to say.
Here is the good thing: you can find thousands of reviews
online. These will provide you with an inside look at what each lender brings
to the table.
But here is the downside: there are people out there who
aren’t levelheaded when leaving a review. For this reason, you must take
everything you read with a grain of salt.
By following the above advice, you will find yourself in
position to successfully secure a business loan online.
If you know what you want, if you are willing to be patient
until you find it, the end result will be a loan you are comfortable using to grow
Chris Fuller went to the University of South Florida and has worked in the financial sector for over 20 years. He has extensive experience in all aspects of personal and small business lending, from personal loans, equipment finance to cash flow based solutions for small mom and pop businesses, and large corporations.