Though the world is yet to overcome the current pandemic successfully, businesses are making an effort to rise above the situation and get back to their feet. And many of them are opting for loans to ensure positive cash flow or to keep operations running smoothly. Small businesses are especially considering unsecured business loans as these do not require collateral and are often easier to avail. Plus, there is no need to step outside or visit a financial institution to apply for such a loan. You can do it all online these days. So, here are the 5 reasons why getting an unsecured business loan online makes perfect sense.
1. You can keep COVID at bay
In the current scenario, it is natural for most business owners to worry about contracting the coronavirus when they venture outside or travel. However, if you apply for an unsecured business loan online, you will not have to take that risk. You no longer need to visit the nearest office of the lender to discuss your needs.
There is no need to take a bus, auto, or taxi and come in contact with surfaces that might be unclean. This way, you can protect others at home or at your workplace too. Moreover, when you apply online, you get to go through all the terms and conditions at your own pace and there is no need to meet a representative. This helps maintain social distancing.
2. You can research and compare efficiently
Before you apply for an unsecured business loan online, you can research the loan features of different financial institutions and even compare them. For example, you can check important details like interest rate, tenure, loan amount, and eligibility criteria on different lender websites and decide which one is ideal for you. In case you need more information, you can always call their customer care.
Since unsecured loans do not involve the pledging of any collateral, most financial institutions require you to have a decent credit score. This requirement might vary from one lender to another. You can easily find that out online or call them. Most financial institutions also provide a loan calculator tool on their websites, so that you can enter different loan amounts, tenures, and interest rates to see how much EMI you can pay comfortably.
3. The loan processing will take less time
Even if you go the traditional way (visit a lender’s nearest office), an unsecured business loan is processed faster than a secured loan. This is because it does not require any collateral. So, representatives of a financial institution will not have to waste any time on examining property papers or other asset-related documents, before approving your loan request. And this process becomes faster when you go online.
Leading financial institutions have dedicated mobile apps too, which make the application process easier and simpler. You can do it anytime and from anywhere. Usually, it just takes a few days for the loan amount to get credited to your account, once it is approved.
4. It is easier to keep track of everything
When you apply for an unsecured business loan online, you upload the soft copies of all relevant documents. Unlike a physical submission, there are no papers or files to keep track of. So, basically, nothing gets lost and can be easily retrieved if needed in future. Also, in case of online processing, the approval comes to your inbox.
Hence, you can save that mail for future reference easily. You get all loan-related alerts and notifications via email or texts too. This makes it impossible to miss them. So, you will never miss paying an EMI on time or you can contact the lender promptly if any discrepancy is noted. And by making timely payments, you can build your credit score over time.
5. Do everything online after the loan is approved
One of the best parts about applying for an unsecured business loan online is that, once it gets approved, you can track it and carry out several actions online. For instance, you can view your loan statement, pay EMIs on time or in advance, download the repayment schedule, request foreclosure, and much more, from the comfort of your home. There is no need to visit the lender’s office every time you need to check something or request a document.
You can save a lot of time and energy this way, and devote yourself more to your business. Many financial institutions have apps that allow you to check prepayment and missed EMI charges as well. This will make you more careful about your debt.
An unsecured business loan is ideal for small businesses that do not have collateral-worthy assets or need quick funding to tide over difficult times. Moreover, you do not need to fear legal complications or the lender will not take away your asset in case you default. So, to make the most of this loan, apply for it online and benefit from convenience, speed, and safety.