types of loans / Unsecured Small Business Loans /

Online Business Loans

Thanks to the innovation of platform lending, you have options to get automated loan approval online.

What is an online business loan?

Whether you are in the startup phase, experiencing growth in a slow business cycle or just need to ensure positive cash flow, access to business funding is a crucial component for your business to grow and thrive.

Traditional lenders are generally more conservative in their lending practices, limiting the places small business owners can turn to for the working capital they need. Fortunately, lending platforms provide access to online loans that offer many benefits to small business owners.

With a line of credit, you can choose how much you want to borrow. While tapping into a line of credit is not a new concept, the convenient, flexible way you can get online approval for working capital is a new benefit for small businesses.

Innovation has modernized the loan process. Many lending platforms now allow applicants to complete an online application in minutes and get a decision quickly– a vast upgrade compared with loans from traditional lenders, who can take days or weeks to review each application.

Key Characteristics

Online business loans offer a number of advantages over traditional small business loans.

Online Access to Capital

The automated process by which online loans are available works well for small business owners' busy schedules. Small business owners are often looking to take advantage of a timely opportunity, manage cash flow or just have funds available when they need them. Since time is a luxury for most entrepreneurs, speed is a favorable benefit of using an online business loan.

Reviewing the Big Picture

Lending platforms like Kabbage Funding assess the overall performance of the business when reviewing an application, whereas traditional lenders often focus on the personal credit history of the business owner, the number of employees and industry trends. The process for many online lending platforms includes a review of the real-time business data. This can include any online sales (e.g., eBay), banking transactions (e.g., PayPal), accounting data (e.g., QuickBooks), shipping (e.g., UPS) and dozens of other sources.

Range of Options

Through online lending platforms, businesses can usually access a wide range of capital and varied repayment terms. Kabbage Funding, for example, offers access to anywhere from $500 to $150,000 in working capital loans with repayment terms between six and 12 months. Online loans may be a great solution for short-term expenses such as bridging the gap between accounts receivables and payables, short-term operational costs, and assisting with cash flow, inventory and emergencies that may arise.

Flexibility

Some online lending platforms offer lines of credit from which businesses can draw multiple times up to the total line amount. These types of products provide great flexibility since you can take the amount you need, when you need it without reapplying each time. This gives you the ability to choose how much you want to borrow. While tapping into a line of credit is not something new for businesses, the convenient, flexible way that small business owners can now apply and receive access to such lines of credit is.

Weather Unexpected Problems

Running a business includes confronting a series of risks. Some threats to your company could reduce your income or increase your costs. Very often, the way companies manage risks determines their success and their longevity. No matter how well you plan, surprises come up from time to time that can leave you strapped for capital.

Having a line of credit gives you peace of mind that you can handle whatever comes next.

Improve your Company's Creditworthiness

Traditional lenders want proof that your company manages debt well. If your business never borrows money, it's tough for you to establish yourself as a good credit risk. In addition to providing necessary working capital, a business's first loan can help demonstrate that you know how to manage loans.

Once you establish a good history of making prompt payments and managing credit well, you'll become a more attractive customer for all kinds of lenders. When you demonstrate you can manage loans well, your cost of borrowing typically goes down. If a loan helps you build credit while increasing your profits, you'll know that your credit management plan was sound.

Lending platforms like Kabbage Funding look beyond just a credit score to assess the overall health of a business when reviewing an application. In addition to reviewing the cash flow, the Kabbage Funding also reviews real-time business performance to assess credit risk and determine pricing. Kabbage Funding allows you to apply in minutes and if approved, get funding quickly and can avoid extensive paperwork.

Why Kabbage?

  • Hand with watch icon

    We're fast

    Apply for our products in minutes, so you can get back to running your business.

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    We're flexible

    Our products are designed to help you manage your cash flow on-the-go, 24/7.

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    We're secure

    For your security, Kabbage uses data encryption and “read-only access” to better understand your business.

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