A Guide to Getting Small Business Loans Online
Did you know that you can apply for small business loans online? They might be a better solution for you, considering that traditional loans can take ages to get approved.
This article will show you what the most popular online loans are, explain how they work, and give you an overview of their requirements.
Unlike other loan types offered by banks or the Small Business Administration (SBA), online loans are easier to get and have a straightforward application process. Another benefit is that their terms are more flexible, and they do not require as much paperwork for the registration. You will usually be required to submit:
- Business tax ID
- Your social security number
- Connection to your business bank account
- Financial statements
A major benefit of online small business loans is that they are processed quickly, and you can also expect your application to be reviewed fast.
Here are some of the most popular small business loans that you can get online:
- PayPal Small Business Loan
- Headway Capital Loan
- Kabbage Loan
PayPal has a business plan that lets you fill your budget with anywhere from $5,000 to $500,000. You will have 13 to 52 weeks to repay the amount of money you get (which depends on your credit score and your business’s financial strength).
To get a small business loan from PayPal, you are required to have a minimum of $42,000 in annual revenue. You must also meet other requirements:
|PayPal Business account||You need to create a PayPal Business account by visiting the company’s official website|
|Strong credit score||Your personal credit score needs to be at least 550|
|Well-established business||Your business must be running for at least nine months|
You must sign a personal guarantee, and you must not have any personal bankruptcies. The signed guarantee will act as collateral if you fail with the repayment.
To check whether you meet PayPal’s loan qualifications, you can complete a questionnaire on the company’s website.
Headway Capital loans enable business owners to cover the costs of their startups (e.g., new equipment, utilities, and similar expenses) with a flexible and easy-to-get loan. You can borrow up to $100,000, which you can repay in 12, 18, or 24 months. The company offers clear payment terms, the interest does not compound, and you will not be penalized for early payoff.
To be eligible for this loan, you must have been in business for a minimum of one year with a revenue of at least $50,000. You will also have to check the company’s Rates & Terms page to see whether the organization serves in your state.
Kabbage allows you to borrow anywhere from $500 to $150,000, which you can repay in six or 12 months. To be eligible for a Kabagge loan, you must have:
- An American Express card that you have used for at least two months
- Been in business for at least a year
- A valid business checking account
The loans are funded by the American Express National Bank. If you meet the criteria, you will be approved in a couple of days.
If you cannot find an online lender and Google is giving you dozens of unsatisfactory results, use DoNotPay! With our Find an Online Loan Lender tool, you can find the best loan provider for your small business’s needs. Our application is not only effective but also simple to use as you only have to:
- Answer our chatbot’s questions
- Specify your business industry and type
We will compare online lenders and send you a list of the top three lenders, along with possible loan amounts, rates, and speed of approval.
Besides gathering the required documentation when applying for a small business loan, you will also have to prepare a loan request letter. This is one of the most critical documents you need to file as the lender will review it to make sure you meet their qualifications.
The loan request letter has to be written with care and contain zero errors if you want your application to be approved. If you don’t know how to write one, subscribe to DoNotPay and let our AI-powered app generate this crucial document for you in no time.
Do you want to make sure that your application for a small business loan gets approved? Use DoNotPay and get a sublime loan request letter. We will use the details you provide to generate a tailor-made document for you. All you have to do is:
- Find our Business Loan Request Letter tool
- Collect your personal and business credit scores
- Tell us how much you want to borrow, provide details about your company, etc.
- Upload the required paperwork
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Some of the small-business-related matters we can help you with are:
- Registering your business name, logo, or slogan as a trademark
- Taking out business loans
- Obtaining an Employer Identification Number (EIN)
- Automating the filing of 83(b) election forms
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