A business loan may seem easy to obtain until you consider the variety of loans available and the number of lenders who provide them. You find yourself suddenly faced with options you never had idea existed.
We understand. This is the reason we created this SME Online Financing selection guide. Continue reading to find the perfect loan provider for your Business in Nigeria.
What is online lending?
In the broadest sense, online lending
refers to any financing obtained from an alternative lender on the internet.
Because they offer a simpler and more direct alternative to a commercial bank,
many online lenders are frequently referred to as online lenders.
The phrase has traditionally been used to refer to operating loans, working capital loans, and other forms of credit that are fundamentally comparable to bank loans but originate from or are facilitated by different sources. These earlier loan types are now a vital part of the regular lending market.
It’s frequently easier to obtain financing from an internet lender than from a traditional institution. Still, it’s crucial to conduct some preliminary research to choose the lender who can provide you with the greatest possibilities for your company.
Here are some guidelines to help you find
the right online loan provider for your business.
Consider the interest rate
You should consider the interest rate, but
it shouldn’t be the only deciding factor. A difference of just two
percentage points, for instance, doesn’t matter that much when a loan for
$100,000 has five-year payback terms. However, this would become significant if
the credit were all for $1 million stretched out over 20 years. Compare
interest rates wisely, and when terms are longer, give it more consideration.
Self-evaluation
Spend some time assessing your company and
how lenders evaluate you before moving forward. You can quickly assess your
credit score and other business activities like Transactions and cash flow.
Your financing institutions care a great
deal about your business activity, making it a vital part of securing any
business loan. The activities in your bank accounts over the previous few
months might be a reliable indicator of the state of your company. Typically, Lidya
asks for only three months’ worth of bank statements to get your financing
started.
Check for reliability
Check out the lender to see if they have any awards they can brag about. The Better Business Bureau (BBB) provides ratings for various businesses, including lending institutions. You may tell you are doing business with a respectable company if you see an “A” rating. Anything less needs to be carefully evaluated.
Find out whether the lender is a member of
any other financial organizations relevant to your requirements, and find out
if they have received any national honors or recognition from any publications.
Customer service
The degree of customer service a lender —
or any other sort of business — provides its customers is one of its most
crucial features. In a perfect world, they would be readily accessible through
phone, email, and live chat, among other means of communication.
The top lenders are also those who receive
a perfect score of 10 in every area of consideration.
They should employ personnel who are
extremely knowledgeable, cordial, respectful, and courteous. You would like to
make absolutely sure that the lending institution is understanding and supportive
because finance can be a difficult procedure.
At Lidya
We care about the success of your business
above all. You just have to submit your last three months’ bank statements, and
you can apply for a loan instantly. No collateral, real-time 30 days loans.
