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. Apply here.
