6 Best Loan Services for Your Online Business
With the times being so uncertain, it can be tricky to start and maintain any type of business if you don’t have good finances. Therefore, many businesses find themselves in a situation of needing some kind of funding when starting out. Or, some of them simply need a financing boost to invest and achieve more growth – and online businesses are no exception when it comes to both these situations.
Luckily, however, there are some easily accessible and overall flexible business loan options out there you can use to get your business off the ground (or expand it). And you will be able to get access to these options no matter if you’re just starting an online store, or run any other type of online business – be it big or small. Without further ado, here are some of the best available loan services on the web that can help you get those much-needed funds and achieve your business goals:
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PayPal Working Capital Loan is a great option for businesses that process their purchases using a PayPal gateway service. This being a PayPal-based service, it will require an overview of your transactions history in order to determine your eligibility for a loan, as well as the amount of the loan you can apply for. Also, no credit check is required, and the loan won’t influence your credit score either. Plus, there is no periodic interest, no hidden fees, and no late fees. All you need to do is pay one reasonably priced (and fixed) fee. Of course, this fee is based on the amount of your loan, the repayment percentage, and the PayPal account history of your business.
You will be able to repay the loan with a percentage of your sales that you choose when you apply. Basically, the more sales you make, the quicker you will pay back your loan. In general, depending on the loan terms you pick, you need to repay a minimum of 5 or 10 percent of your total loan amount every 90 days to keep up with all the obligations that come with this loan service.
Finally, you should note that you need to have a Paypal Business or Premier account for at least 90 days to be eligible to apply for PayPal Working Capital. Also, you must process at least $20,000 in annual PayPal sales for a Premier account or at least $15,000 for a Business account. Of course, in case you have any existing PayPal Working Capital loan, you need to pay off that loan first before getting another one.
This is yet another great PayPal loan option. However, what’s different about LoanBuilder compared to the first option is the fact that you need to go through a credit check and the rest of the standard application process to use it. This includes an online questionnaire you need to fill in so that your business eligibility can be completed. Then, you can customize your loan terms by adjusting the loan amount as well as duration. Once you select your desired terms and complete the application, if approved, you will be prompted to electronically sign a contract that will be emailed to you and includes bank instructions so that payments can be debited weekly from your business checking account.
You should note that filling in the questionnaire will evaluate the eligibility of your business and allow you to review estimated offers (if eligible) without influencing your credit score. However, once you complete the loan application process, your credit score can be impacted due to the performance of credit checks.
OnDeck is a great loan service that is especially convenient for small businesses – no matter if you want to use it to manage your cash flow, buy inventory, or make payroll.
There are two types of financing you will have access to with this service – first is the OnDeck Line of Credit, an offer for small businesses to get a revolving credit line with access to the money whenever needed (you can get anywhere from $6,000 to $100,000 and are expected to repay within 12 months). The second option, OnDeck Term Loan is great if you want to expand your business projects, have larger purchases, or make bigger investments in general. It works by getting a one-time lump sum of money with amounts from $5,000 all the way up to $250,000 (with repayment terms up to 18 months). What’s also convenient about OneDeck is that you will be able to apply for more when you’ve paid off half of your original loan amount.
Fundbox is another flexible loan service option that is suitable for any small business, no matter if you need a loan to manage your cash flow, cover payroll, or invest in growth. You have the option of getting lines of credit up to $150,000 that you can repay over 12 or 24 weeks (ideal for funding ongoing expenses), or get a term loan up to $150,000 and repay over 24 or 52 weeks (great if you need to have a large, one-time expense). Both options involve no prepayment penalty (if you pay early) or origination fee. You just need to decide which option works best for your requirements and then go from there.
Kabbage is a great funding option that offers access to a line of credit anywhere between $1,000 to $150,000. After verifying your identity and bank account, you can be approved within minutes if you fulfill all eligibility criteria. Kabbage Funding loans include both short and long-term loans and are suitable for smaller and bigger companies alike.
You should note that it is necessary to join a waitlist at the moment, but they claim that they expect to offer their loan services again soon. So, this is a good option to consider if you wish to expand your business in the future.
BlueVine comes with funding solutions that work well with many different types of businesses. They offer lines of credit up to $250,000 and claim that you can get approval in as fast as 5 minutes. You will be able to pay back every draw with fixed monthly or weekly payments over the span of 6 or 12 months. Also, your available credit will be automatically refilled as you pay off your debt, which means you can get access to more funds fast, in case you need them.
There are some minimum qualifications if you want to use this loan service, such as owning a business that is at least 6 months old and having at least $10,000 in monthly revenue, which makes this option more suitable for growing businesses.
Conclusion
Proper business funding is a mandatory component for the growth of any online business – no matter if you’re only starting out or simply need more cash to properly invest into your next project. Regardless of your business type or size, some of the loan service options we shared with you above are bound to help you out. Keep in mind, however, that some of these services come with multiple loan options and flexible and convenient ways of repayment, while others are more fitting for short-term loans and require you to pay back the money in a shorter period. So, go through each option carefully before you decide on the one that best fits your business requirements. In any case, having a realistic business plan and knowing how much money you may need (as well as how you plan to use it in the first place) is a good place to start when making your choice.
