Top Online Tennessee Small Business Loan Options
Depending upon your personal and business situation, it may not always be possible or preferable to obtain a loan from a traditional lender. Application procedures can be drawn-out, with decisions sometimes taking up to 40 days.
Online lenders usually have higher charges and interest rates, but their application and approval processes are usually much faster. Following approval, fund transfers are usually fast, too, sometimes you will even get approval on the same day.
Here are four of the best online lending options to consider.
With Fundbox, it’s possible to secure a term loan even if you have a new business with a limited credit history. A benefit of Fundbox is that it doesn’t charge an origination fee.
With Fundbox you can borrow up to $150,000 with a repayment period of 24 or 52 weeks. If you find yourself being able to pay the loan off early, there’s no penalty for doing so.
The application process is quickest if you connect your checking account (and your accounting software) to Fundbox’s system. This gives them immediate access to the information they need to form a quick decision.
Any loan offer is valid for 30 days, and once you‘ve accepted it, the agreed funds can be transferred to you as quickly as the next business day.
Ondeck may suit you if you have a new business, as Ondeck informs credit agencies if you manage your loan well. This can help you build up your business’s credit history.
The maximum term loan amount is $250,000, but the relatively short maximum repayment period of 18 months may deter businesses who want to spread their loan payments over a longer period. However, monthly payment amounts are fixed, which may help you maintain a steady cash flow.
Ondeck advertises zero penalties for early repayment. However, access to this benefit is extremely limited and it is generally only available to businesses that have shown an excellent payment history in relation to previous Ondeck loans.
Lending Club is not as suitable for new businesses as the previous two lenders in this list. This is because to qualify for a term loan you have to have been in business for at least one year and have at least $50,000 in annual sales. However, if you do qualify for a term loan, Lending Club is a good option.
The maximum loan amount is $500,000, which can be repaid over 5 years, with fixed rates and no early payment penalty. Lending Club provides a dedicated client advisor to help you every step of the way.
Like Lending Club, Fundera seeks to personalize your online term loan application experience by providing you with a personal advisor.
Out of our four top online lenders, Fundera has the highest maximum borrowing amount - at $600,000. You will need to make repayments over a five year (maximum) period. The payment structure is fixed from the beginning, which makes it easier to plan your company’s cash flow. While it’s great that Fundera offers a higher borrowing amount, collateral is usually required.
Fundera demands less paperwork than traditional lenders, which naturally speeds up the process.