The internet is synonymous with today’s digital era. Apps, products and services are at your fingertips or just a click away. You can order food online, you can be your fitness coach with the latest fitness app, you can read your daily horoscope and play your favourite games. The possibilities of how to spend your time online are endless.
Many businesses have adapted to this modern era by having a website that represents them 24/7 together with customer services to take care of their clients’ needs. By having a website a company can offer its products or services internationally and with that get more clients. Since 2005 one service that has been gaining popularity is online lending. The trend is also known as peer-to-peer lending and is the future of financing that some say might take over banks. The service comes down to lending money to businesses or individuals online by matching lenders to borrowers.
Since it’s becoming more and more common a lot of countries have started offering such services, including Australia. The country’s first peer-to-peer lending platform, SocietyOne, was introduced in 2012. Since then many online lending platforms have emerged such as Moula, lumi, prospa and others. Besides Australia, the US and the UK also offer lending services online. The fact that these platforms are easy to access is the reason there is online lending in Philippines, China, India, Estonia, Bulgaria, Ireland and many more countries.
Small businesses and individuals both have felt the benefits of P2P lending. People can get a personal loan regardless of their credit rating. This also goes for small businesses. Additionally, small businesses can rely on these types of platforms because banks take a long time to approve a loan. Also, it takes them some time to transfer the money. If you’re in an emergency when you need money fast all you need to do is register with a certain platform, fill out an application and get a feedback within minutes. After that, you won’t wait long to get the money, usually about 1 or 2 business days.
Another benefit of online lending companies besides cutting the waiting time is less than half, are the rates they provide. Bank loans will provide higher interest rates than online lenders. The lending platforms don’t value credit rating that much, as mentioned above, but can be practical to individuals and businesses with a bad credit rating in that they can offer lower rates than banks and lending companies.
To unburden your load when you have a bad rating and you need a loan, online lenders do not require convincing and will gladly lend out a helping hand. If you visit a lending institution you’d have to convince someone that you need the loan and negotiate your way to terms that won’t put you in a worse spot than the one you’re in. Also, online lenders are many so you can find a few that suit your requirements and give you favourable terms. Before choosing one, however, you should do thorough research.