Online lenders have found out that the world is their oyster, and to pop it open all they had to do was instill some Fintech into their lives, and into the lives of their customers. Just to explain, Fintech is any type of technology that seeks to improve or automate any financial transactions. Innovative financial technology will continue to grow, connecting the world in a way that was never thought possible a decade ago.

A slew of online lenders has appeared overnight, giving the world options for business loans. Viable options that are changing the way that businesses apply and monitor their loans. Paying for them is a snap as well. Let’s dig into this a little bit deeper.

• Peer to peer lending-A new concept that should have happened long ago. The online platforms allow you to apply for low-rate business loans without ever having to step into a building. There are people in the world that have money to spare and are more than willing to loan it to businesses in need if they get some interest payments on it. Which of course is a business of its own. Yes, the business will have to pay interest on the loan, but the costs will be less to them because they do not have to pay the outrageously high interest rates set in place by the large lending agencies and banks.

• Automation- This lowers the cost to you because the lending companies will no longer have the need of always having people on staff. Artificial Intelligence is being implemented to run the boring aspects of the business, such as the approval process. The computer system will take all the information and process it. From there they will decide based on your risk score, which is decided through programs that take your info and plug it into algorithms. The higher your risk number is, the higher your interest rates will. Very few times will a request for a loan be denied because there are so many lenders, and private people, who are willing to take a chance to get your business. An example of this in action would be like the iSelect business loans comparison site that can get the ball rolling for you.

• Approvals-The traditional way of getting a loan could take you weeks to even get an answer, and then even longer before you get any money from your loan. Online lenders do not work that way. They will use the AI programs, as explained above, and process your application on the spot. You will have a decision within hours usually, and the money that you need could be deposited directly into your account within twenty-four hours. 

• Data Control-Online platforms give the borrowers access to loans through the internet, and it offers the lender the ability to check details of the application online. All in a matter of minutes. The faster you fill out the paper, the faster the decision will get back to you. Data will not only be checked on the application, but across the internet from various sources, like your credit report and history. All aspects of your life, and the business if it is already up and running, will be inspected, evaluated, and formed into the risk rating number that is the backbone of any lender.

That is about all there is to it. Online lenders use the technology that they have at their disposal to get business loans out to those that need it faster, more efficiently, and without having to deal with institutions that jack rates up to get more profits from you. The world of lending has changed for the better, and within a few years those lenders that have not adapted to online platforms will get left in the dust.