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Comparing Online Business Loan Providers

Comparing Online Business Loan Providers

Getting a business loan can be a crucial step for entrepreneurs looking to start or grow their company. With the rise of online lenders, there are now more options than ever when it comes to financing. But with all the choices, it can be tough to know which online business loan provider is the best fit. This article will compare some of the top players in the space to help you make an informed decision.

Key Factors to Consider

When evaluating online loan providers, some of the key factors to look at include:

  • Interest rates and fees: This will have a significant impact on how much you end up paying back. Pay close attention to the APR when comparing options.
  • Loan amounts: Each lender offers loans in different size ranges. Make sure to find ones that work for your borrowing needs.
  • Funding speed: If you need money quickly, look for lenders that can fund loans in a few days or less.
  • Eligibility and approval rates: Check if you meet a lender’s eligibility requirements before applying. Also look at their approval percentages.
  • Customer service: Having a responsive support team can be vital when you have questions or hit snags.

Top Providers

Here is an overview of some of the most popular online small business loan companies:

Kabbage

Kabbage has provided over $10 billion in funding to customers. They offer lines of credit up to $250,000 with competitive variable rates. One of their standout features is fast funding – you can get approved in minutes and see money in your account in as little as 24 hours. Their automated lending platform makes the application process smooth and simple.

Pros

  • Fast funding times
  • High maximum loan amounts
  • Easy online application

Cons

  • Variable rates can fluctuate
  • Daily repayment can be difficult for some businesses

OnDeck

OnDeck is an online lending platform providing various financing products including term loans and lines of credit. Their technology analyzes thousands of data points to make fast lending decisions. OnDeck offers higher loan amounts than some competitors, up to $500,000. They have also funded over $14 billion to date.

Pros

  • Loans up to $500K
  • Quick application and decision timeline
  • Variety of loan products

Cons

  • Strict eligibility requirements
  • Higher interest rates than some lenders

Fundbox

Fundbox specializes in short-term financing for small businesses. They provide credit lines and loans from $1,000 up to $100,000. Their focus is on offering flexible repayment schedules tailored to companies’ cash flows. Fundbox has an easy online application and can deposit funds as soon as the next business day after approval.

Pros

  • Flexible repayment terms
  • Fast funding
  • Low minimum loan amounts

Cons

  • Max loan size of $100K
  • Higher effective APR than term loans

PayPal Working Capital

As an industry leader in digital payments, PayPal also offers business financing products. Their PayPal Working Capital program provides lines of credit based on companies’ PayPal sales history. These credit lines have no fixed repayment schedule or due dates. Instead, PayPal takes a percentage of businesses’ daily card receipts until the balance is repaid.

Pros

  • Easy qualification based on PayPal sales
  • No fixed repayment schedule
  • Quick access to funds

Cons

  • Must process payments through PayPal
  • Repayment rate can be high

BlueVine

BlueVine provides both term loans and revolving lines of credit to small business customers. They focus on streamlining the application experience for fast, simple financing. BlueVine offers credit lines up to $250,000 and term loans up to $5 million. Their technology automates underwriting to accelerate funding. Many customers can see funds deposited in their account within a few days of applying.

Pros

  • Fast underwriting and funding times
  • Term loans and lines of credit offered
  • Loan sizes up to $5 million

Cons

  • Limited customer support options
  • High APR on some products

Key Takeaways

All of the online lenders profiled above have their own strengths and weaknesses. Consider factors like loan amounts, funding speed, eligibility criteria, rates and fees. Comparing options side-by-side can help you find the best fit.

The online financing marketplace keeps maturing with updated offerings and technology. But by understanding these top providers, you can make an informed financing decision for your small business. Reach out with any other questions!

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