As we discussed in previous articles, online small business loans have changed a lot. As the banking and fintech areas have adopted to work online, the process for obtaining a loan has also adopted this mode. Your business no longer has to wait months to find out if it qualifies for funding; When you are wondering what the terms of the loan are, you can forget the bad credit scores that were ruining your chances of getting financing. The industry has evolved so quickly that it’s easy to lose track of it. So let us refresh your memory.
If you have already applied for a loan at the bank, you are probably familiar with the mountain of documents that needed to be completed. All these documents ended up on someone’s desk, and you can imagine then the situation was slow. But FinTechs, like Evolocity for example, has made changes to transform and improve things.
This seemingly infinite amount of paperwork has been replaced by automated and simplified software to increase efficiency. Online applications facilitate the operation by making the application for a loan considerably less time consuming. In fact, the application to Evolocity can usually be done in less than 10 minutes. Not only is it fast, it’s also easier to access. You can complete the request from your smartphone on the train back from work if that’s what you need. All you need to complete your application is the following information:
- The start date of the business and general information about it (such as legal name and business address)
- If you rent a room, the end date of the lease
- The login information of your online commercial banking account or the most recent bank financial statements in PDF format (last three months)
- Information about the owner (s) (such as name, home address and date of birth)
Another element that helps Evolocity keep demand as short as possible is a technological partnership with Decision Logic, using their Instant Account Verification. This allows :
- Accelerate. It is not necessary to call the bank or wait for the borrower to find and provide the financial statements
- Reduce abandonment A faster process means there are fewer frustrated people who drop their claim
- To reduce the risk. A more complete picture of the borrower allows for greater trust and a higher approval rate
Custom technology platforms
Since applications are now often made online, all data is instantly captured in our custom technology platforms. This approach not only reduces the use of paper, but generally reduces all paperwork. Requests are ready for review immediately, decisions can be made more quickly and requests are already in the correct format. Even if it’s only a step in the process, the company uses similar methods for all of its work.
Our other technology partners include Salesforce and Equifax.
- Salesforce is our CRM platform (customer relationship management). It speeds things up by serving as a central storage space for the information the team is using and collaborating with. Because everything moves faster in the background, you can also receive the funds you need faster.
- Equifax helps us by transferring data, such as legal and credit information, securely and quickly.
Simpler qualification criterion
The process used to determine if your company is eligible for funding has also evolved. Traditionally, a few key factors determined the outcome of your application, especially your credit rating and liquidity. In the FinTech era, they are just some of the many criteria used. Although we explain in more detail in our Guide for Small Business to get a loan.
No personal guarantee is required
A personal guarantee is anything that you personally own, that is, that does not belong to the company. This can be goods such as your house, your car, etc. According to Investopedia “Since personal property provides some security for the lender in the event that the borrower does not repay the loan, loans that are secured by personal property usually have lower interest rates than unsecured loans” Evolocity Small Business Loans are not guaranteed, which means you do not take any personal property. It may be that the loan costs slightly more than a traditional loan to the bank, but you are not likely to lose your personal belongings.
Presence online and on social media
As a small business owner, you probably know the importance of your online presence. Not only does it help bring customers, but a trusted online presence can also improve your chances of qualifying your business for a loan. Being active online shows lenders the possibilities of your business. The comments indicate the quality of the service and underline the implication of your customers. This may seem surprising to you, but it is an increasingly popular practice among alternative lenders to take this into account. Make sure you get the most out of your site with our guide.
Benefit of change
Thanks to the Internet and the evolution of technology, the pace of business has changed. It is moving faster than ever, and it was only a matter of time before popular financial services, such as getting a commercial loan, became available with a single click of the mouse. The loan application process has become increasingly simple over the years and more and more small business owners are finding it easier and faster to obtain financing online. It is important to note that online loans to small businesses are somewhat different from traditional bank loans. So we made a list of the main differences between the two types of loans to help you find what is best for your business.