Let’s say that you are a small business owner looking forward to expanding your business. To accommodate more demands, you need to hire more workers, rent a bigger space, obtain more materials, and optimize your digital marketing tactics. But all these things require money. How can you finance such a considerable amount of investment?
If you don’t have enough capital to grow your business, you’ll apply for a business loan. But most small business owners find it hard to get approved, especially they have a low credit score. In a desperate move, they may be tempted to take out a loan from a lender who has very high interest rates.
The good news is that you can now rely on digital lending platforms to help you finance your business expansion. But the question is: why would you choose a digital lending platform instead of applying for a traditional bank loan?
Higher chances of approval
Most lenders require their borrowers to have an excellent credit score. With digital lending platforms, you can get approved even with a score of less than 680. Most make use of alternative data sources made possible, thanks to different credit scoring companies in the Philippines. This means that even if you don’t have a stellar score to begin with, you get approved for the loan.
Fast and easy application
A traditional business loan application requires you to go to your lender, complete all written applications, and convince your lender what your business plan is and how you intend to spend the money. With digital lending, you only need to complete the online process and pass the requirements. You can receive the results fast and easy and receive the loan afterward. This means that you can finish the loan application within minutes.
Easy capture of your information
One of the best things about digital lending platforms is that they allow for the easy capture of your data. You can apply for a loan no matter your location at any given time. If the system detects inconsistencies or human errors, it will notify you to double-check your details so that you can correct them asap. Oftentimes, the system will correct the data needed, making the process simple and a lot faster.
Consistency
Digital lending platforms work hard to provide you with a consistent, fast, and easy loan application process. They stick to their rules and do not require non-members to create an account before allowing them to apply for a loan. They make sure that their clients will not only have a good first impression but also consistently excellent service.
Quick waiting time
When you apply for a business loan at a bank or any traditional financial institution, you can expect a longer waiting time. One has to wait at least two to three months before you get the results and before receiving the loan. As for digital lending platforms, it takes a considerably less amount of time for the results to come out. Some can take a few days, others a couple of hours. Some can give you results a few moments after the application.
This only goes to show how digital lending platforms help SMMEs benefit from their services. You can enjoy a quick and easy loan application for your business. You can get the results faster than a traditional loan and receive a consistent service from day one. You can finally initiate your plan to grow your business without having to go through a needle when securing a loan.