rise-of-online-lending

Why online lending is the new black

Non-bank or alternative lenders are making a huge difference to the lives of Australian business owners. And there’s a good reason why.

Fintech, or finance technology, is driving the future of financial services in Australia. New streams of real-time data are emerging, and alternative lenders use this data to better support financial decision-making.

Online funding platforms are allowing a greater number of companies to access the capital they need for growth. It seems that more and more business owners are starting to sit up and pay attention. A recent East & Partners survey suggested there has been a 20% increase in non-bank lending demand, stating ‘the proportion of SMEs inclined to borrow from their main relationship bank has decreased, with a greater number sourcing credit from another bank or specialist.’

As more and more Australian business owners become familiar with non-bank lending, they’re quickly realising the benefits it brings to their business. The ease of application, speed of service, transparency of repayments allow SME owners to seize opportunities and better manage their cash flow.

If your business needs capital, perhaps it’s time you considered a non-bank lender and see for yourself what all the fuss is about.

6 Key Reasons To Consider a Non-Bank Lender

Simple Online Application

Online lenders analyse real-time big data to offer the most efficient financial services available. This use of technology provides a powerful and paperless application that is completed online in minutes. However, just because the application is quick and easy, doesn’t mean it’s not thorough and comprehensive. Online lending is not an uncalculated risk, after all, there is no collateral to secure your loan. Online lenders use the latest financial technology to make a responsible lending decision based on the health of your business.

Convenience

The most precious asset a business owner has is time. Online, non-bank lenders understand this. You won’t be asked to come into their offices between 8.00am and 4.00pm Monday to Friday. You won’t be asked to queue up to speak to a customer service representative. You won’t need to print, fill out and sign a pile of paperwork. What you will do is apply online, in your own time, when it’s convenient for you. And if you would like to speak to someone, they’ll get back to you at the time and day that suits you. A convenient online process available 24/7, 365 days a year. An application to suit you. Anywhere. Anytime.

Flexibility

Online lenders understand that small businesses need to be agile, dynamic and adaptable. And their loans reflect this. Some lenders, like Sail, even allow you to repay your loan early with no fee or penalty. If you need to increase your loan- sure, contact someone to discuss your options. Online lenders understand that businesses aren’t rigid, and circumstances arise that aren’t always be planned. Alternative lenders are flexible because they know it’s what matters to small business owners. Loans are customised according to the circumstances of your business. Better performing businesses receive a more competitive interest rate. In contrast, businesses going through a challenging period are still able to access the capital they need to make a change and seize upcoming opportunities.

Positive Experience

The first thing you’ll notice about online lenders is that they do not look or behave like a traditional bank. If you’re worried about poor credit history, this may not be a deal breaker. Many lenders adapt the interest rate to suit your current position. And if they can’t lend to you, they’ll tell you what you need to do in order to get the funding next time. Clear, transparent, down to earth advice. The great thing about harnessing big data is the ability to take a sophisticated snapshot of your business in real-time. This allows alternative lenders to focus on your businesses potential and offer a customised loan that suits your needs.

Fast

Welcome to the era of instant gratification. Online lenders will have a lending decision immediately or within 24 hours. You will receive the funds in your account within 72 hours. What this means for business owners is the ability to jump on opportunities that come up, be more decisive and assured in your growth strategy, and better manage your cash flow during times of seasonal fluctuations.

Transparency

Online lenders offer a fully transparent fee structure. No hidden fees. No nasty surprises. Business owners know exactly what they need to repay when they need to repay it. Because online lenders often offer short-term loans, usually 3-12 months, businesses will repay the same amount month on month. No changes or fluctuations, so again, you can plan ahead and better manage your cash flow. A straight forward, clear, repayment schedule. Fair and simple, always in plain English.

There you have it. It’s easy to see why business owners are finding non-bank lenders a more attractive option when it comes to accessing capital for their business. Alternative lenders have unlocked a new demand from small businesses, and with that comes great potential for SMEs to grow and succeed. Online lenders are have become a welcome change to the Australian finance industry.

 

 Over to you…

What would you be able to achieve in your business if you had access to the capital you needed?

We’d love to hear from you in the comments below.

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