Online Lending and Its Impact on Small Business

CFGMS Admin March 1, 2017 Category: Small Business Funding

For many small business owners, accessing additional working capital is essential to fuel growth — whether it’s to repair equipment, hire new staff, or seize relocation opportunities. However, the lengthy application process and low approval rates of traditional bank loans often leave business owners frustrated and seeking alternatives.

That’s where online lending comes in. Leveraging advancements in financial technology (FinTech), online lenders are making it faster and easier than ever to get the working capital your business needs — often with higher approval rates and more flexible options.

Need Working Capital Fast? Online Lending Delivers

Unlike traditional bank loans, which require extensive documentation, complex underwriting, and lengthy reviews, online lending streamlines the entire process.

Thanks to FinTech innovations, lenders can quickly analyze your business’s financial health and make swift funding decisions, sometimes within 24 to 48 hours. This speed helps businesses stay agile and capitalize on growth opportunities without missing a beat.

How FinTech Powers Smarter Lending Decisions

Online lenders harness powerful data analytics that go beyond traditional credit reports. They analyze a range of factors, including:

– Payment histories

– Bank account activity

– Sales data

– Business performance metrics

This rich data allows lenders to more accurately assess risk and extend funding to businesses that may have been overlooked by traditional banks.

More Financing Options to Fit Your Needs

Online lending platforms offer diverse funding solutions tailored to small business needs, such as:

Merchant cash advances: Advances against future credit card sales

Invoice factoring: Selling unpaid invoices to improve cash flow

Purchase order financing: Funding to fulfill large orders

Equipment financing: Loans or leases for essential equipment

Many options also come with innovative collateral arrangements and flexible repayment terms.

Competitive Interest Rates and Higher Approval Rates

By leveraging data-driven underwriting, online lenders often achieve lower default rates, which creates a competitive environment that benefits borrowers. Effective interest rates for online financing can be more affordable than credit cards, with repayment plans designed for your cash flow.

Most importantly, approval rates for online loans are significantly higher than traditional banks, giving more small businesses a real chance to access critical capital.

The Future of Small Business Lending Is Online

While some traditional banks have begun partnering with alternative lenders to incorporate FinTech, online lending continues to grow as a preferred method for small businesses seeking fast, flexible financing.

This trend is opening doors for entrepreneurs who need capital now — without the delays and hurdles of conventional financing.

Ready to Fuel Your Small Business Growth?

Don’t let financing challenges hold your business back. If you’ve been denied by a bank or want a faster, easier way to secure working capital, online lending might be the solution you’ve been searching for.

At CFG Merchant Solutions, our team brings over 60 years of institutional investment banking expertise to offer alternative funding solutions tailored to your business needs. Applying is quick, simple, and designed to get you the funding you need — fast.