Time is money and it is also the main reason why more and more small businesses are turning to online business loans. Online borrowers benefit from a much easier application process and get the funds much faster than traditional financing options. Thinking about applying for an online loan? So being prepared and having the right information when you make your request will make this process fast and simple even faster and may increase the chances of your application being accepted.
1: The essential facts about your company and its history
One of the first things that lenders want to know is who you are. Most of the time it is important information like:
- How long have you been in business?
- Are you the only owner?
- do you have a lease or do you rent your premises?
- a credit check
These questions are intended to quickly provide a complete picture of your business. By digging a little deeper, subscribers will look for things such as whether you have ever had any tax problems or if you have obtained financing from a competitor. Unlike banks, Evolocity will look for data from social media (Facebook, Yelp, etc.) and the web to find out what is said about your business. It is important to note that even if your business does not have a brilliant image in all categories this does not necessarily mean that you can not qualify and that you will not have funding. What the team considers is the overall health of your business and not just partial success in a few particular areas.
2: Your ability to repay the loan
A loan to a small business is repaid by daily “micro-payments”, making the repayment really easy to budget, but you’ll still need to plan for payments and adjust your budget accordingly. offers you the possibility of arranging your own loan; you decide how much time and daily payment is best for you at the time of the online loan application. You must know the amount of the refund that you can afford before starting your application. Take the time to talk to your accountant or dive your nose into your books.
You may need to ask yourself questions such as:
- What do my daily sales look like?
- Note: You need monthly sales of at least $ 15,000 to qualify
- How much are you willing to repay each day?
- How long do I feel I can repay the loan?
- Remember to take into account the seasonal fluctuations that are coming
The terms of your loan will be based on the principal borrowed and the maturity chosen for repayment. You can tailor the product to your specific needs and determine if it suits your business. If you are comfortable and you feel able to repay the loan under these conditions, there is a strong presumption that the lender will also be able to repay the loan.
3: Measuring the value of your assets in the short term
The value of your current assets is not essential to qualify for a small business loan, but if you do not already have a detailed statement of your short-term assets, this is not a good value. bad idea to make one. Other lenders may require this information upon request. What you are looking for is to determine which of your assets can be converted into cash during the year. The larger the amount, the greater the likelihood that lenders will accept your request.
According to Investopedia, here are some examples of short-term assets:
- Accounts Receivable or Accounts Receivable
- Negotiable securities
- Prepaid expenses
- Other cash that can be easily converted into cash.
This article written by Nicole Pontius is a good guide on how to calculate the value of your assets in the short term depending on the kind of business you own.
4: Assessing your local market, industry and economic conditions
Have a good knowledge and understanding of your macro environment. Not only do lenders view the success of your business, but they also look at how the world in which it operates is in general. Research and present up-to-date industry statistics and demographics that can show the strength of the market. Taking the time to take a look at relevant economic forecasts will help you understand the future of your business.
How Evolocity Easily Enables a Small Business to Get an Online Loan
The goal of Evolocity is to provide the fastest, easiest, and least painful application process possible. Here is a short summary of what you need before you apply:
- The start date of your business and the general information about the company (such as its official name and address)
- If you rent your premises, the lease expiry date
- Login information to your online commercial bank account or the most recent bank account statement in PDF format (last 3 months). You can download this information directly online!
- Information about the owner (s) of the business (such as name, home address and date of birth)
The online application only takes a few minutes, but if by chance you are forced to stop, you can continue to fill out the application later from where you left off. You can also exit the site, speak to an online customer service representative or call someone for help. Once approved, funds can be deposited into your account in as little as 48 hours.