Top 3 Online Alabama Small Business Loan Options
An online loan is a straightforward and fast way to boost your business. This kind of loan is common to a diverse range of financial institutions, not only banks. Online lenders offer many credit solutions, like lines of credit, installment loans, and more. In this section, you’ll learn more about the most popular options out there.
LoanBuilder, also known as PayPal Loan, is an online lending service offered by PayPal. It provides short-term loans with simple and straightforward rules, and it requests less documentation than most competitors. It also has lower credit score standards and no interest rates. Instead, you pay a fixed fee, spread throughout the repayments.
Your business must be operating for at least nine months, and your credit score must be 620 or above. LoanBuilder’s yearly revenue requirement is $42,000, which is much lower than the average $100,000. It has a long list of ineligible industries, like environmental organizations, gambling businesses, civic and social organizations, human rights organizations, etc.
The prequalification process has five steps. It takes about ten minutes to complete. First, you must provide contact information, business location, business details, and finally, verify your identity. After approval, you choose the terms of your loan and sign an electronic contract. You’ll then receive your funds.
Fundbox is one of the leading online loan providers. It requires fewer documents, and you only need a credit score above 500. Fundbox has some of the lowest small business loan requirements. Lower requirements can be a crucial advantage for B2B or B2C businesses, small businesses, and even freelancers.
The company also offers revolving lines of credit to be repaid in 12 or 24 weeks. Fundbox offers loans up to $150,000, which might not be enough, depending on your needs. Also, fees and taxes can be higher when compared with other institutions. Still, if you don’t qualify for other loans, a loan from Fundbox may be a great solution.
Its invoice financing service can fund 100% of your invoice value, against the average of 80% or 90% of most financial institutions. Interest rates range between 4.66% and 8.9% for 12 weeks and 24 weeks repayments, respectively.
P2Binvestor is a peer-to-peer lending company with no credit score requirements. Instead, loans are asset-backed, meaning it considers your invoice and inventory values before deciding your loan amount.
Your business’s yearly revenue is another important criterion: it must make at least $500,000 a year to qualify. However, some industries are ineligible for any P2Binvestor loan: construction, real estate, cannabis, and medical insurance billing.
The amount of your loan will depend on the value of the assets you are backing it with. P2Binvestor usually offers between 70% and 80% of your receivables. For inventories, the amount ranges from 20% to 50%. The borrowing amount can go from $250 to $10million. Despite not having credit score requirements, some borrowers can have a hard time meeting the yearly revenue standards required to access a loan.