Borrowing money to improve or grow your business has never been easier with digital lending. Thanks to ever-evolving technology, the way that companies apply for loans has been simplified, and the whole process has been sped up. Gone are the days of endless application forms, credit checks, and bank visits – this modern way of lending has allowed borrowing to become more accessible and efficient for all businesses. If you want to know more about how you can benefit from digital lending, read on to find out more!
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What we mean by digital lending
Digital lending simply refers to a platform that businesses can use to apply for a loan or merchant cash advances, online, with ease. Borrowers have access to a range of finance options to help them when they need it most – for example, to finance a particular piece of equipment the business cannot operate without, or in case of emergency when funds cannot be stretched to cover it.
The loan process takes place online, and with that comes a range of different benefits which we will look at in more detail below, from the ease of application to trackable payments and user-friendly platforms.
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Why it is becoming more popular
Digital lending is becoming more popular because it takes away the difficulty of applying for a loan or advance with a bank or independent lender. Traditionally, applying for a loan took time, and being approved took even longer, with lengthy processes taking place before the borrower could see any financial deposit appear in their account. If you’re looking for funds in an emergency, the traditional process could be detrimental to your business, and your profits due to its time-consuming nature – using a digital lending platform eliminates these difficulties.
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Time efficient
With digital lending, the process takes place solely online, so you can track your application from start to finish. One of the main benefits that come with digital lending, is that you can apply from wherever you are, at whatever time of day. No appointments, calls, or interviews are necessary. When you’re applying for a loan, time is of the essence, and with technology advancing every day, we’re used to having access to things in just a few seconds – these loans are no different.
As a business’s application is reviewed, auto-decision making is used to speed up the process. Lenders have access to the documents and credentials that they need to make their decision, which means the overall process of loan approval happens more quickly.
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Accurate credit ratings
The use of digital lending platforms has led to lenders being able to calculate the credit ratings of borrowers more accurately. Banks traditionally reply on credit ratings and credit reports of the client to determine whether they can risk lending to them, but digital lenders tend to use technology that can more accurately determine a business’s creditworthiness. They rely less on credit scores and focus more on cash flow and sales within the business, and by using this system, can offer a loan in minutes.
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Mobile and easy to use
Digital lending means that you can apply for and track your loans with ease. The borrowing process is made simple by introducing us to a way of applying that we’re all familiar with – through our smartphones. Running a business is time-consuming, so being able to have access to lending from your phone, without the need to visit a bank or branch, can save time and effort. A good digital lending platform should be easy to use, clear and informative. You could also research the lender you’re choosing to find out what other customers say about their service.