With the recent effects of the pandemic, more and more small business owners are turning to the quick cash injection that a business loan has to offer. Rather than waiting weeks for approval or having to fill in a stack of paperwork, however, borrowers are discovering the advantages that a small business loan online from a direct lender has to offer.
Thankfully, applying for a direct lending loan isn’t hard to do, nor does it take a lot of time or effort on your part. In this guide, we walk you through each of the steps required to obtain a business loan from a direct lender. The best part is you can do it all online.
How Does Direct Lending Work?
Direct lending works differently from traditional lending methods. It provides loans directly to business owners without the need for an intermediary, like a bank. By working with a direct lender, borrowers can, therefore, go straight to the source of their finance. Direct lending also doesn’t require business owners to visit a financial institution in person or seek lengthy approvals. This is because many direct lenders offer their small business loans online, allowing them to meet the needs of various business owners around the country.
Most importantly, direct lenders oversee a borrower’s whole loan process, from the moment they receive an inquiry or an application, right through to the transfer of funds.
Benefits of Direct Lending
There are numerous advantages to using a direct lender over a traditional lender, such as a bank. These include:
- Access to more loan options, as brokers and banks tend to only lend in accordance with their internal policies.
- Easier application process, which can often be completed online at any time and from anywhere. This means you don’t have to visit the lender in person, nor do you have to fill in a pile of paperwork.
- Quicker approvals, as most direct lenders provide an outcome on your application within 24 hours. This is significantly faster than traditional lenders, which can take weeks or months to review your application.
- Faster access to approved funds, with direct lenders like Zinch being able to deposit your required funds in just 48 hours after your application has been approved.
- More flexible terms and conditions, as direct lenders aren’t as constrained by terms and conditions, unlike traditional financial institutions. They also work closely with small business owners and understand that when it comes to financing, one size doesn’t fit all.
Applying for a Direct Lending Loan for Small Businesses
If you want to apply for a direct lending loan for your small business, the process is quick and easy.
1. Check your eligibility
Before you apply for a direct lending loan, it’s important to guarantee that you meet the lender’s eligibility requirements.
To qualify for a small business loan from Zinch, for example, you need to have the following:
- At least 6 months in business
- Over $10,000 in monthly sales
2. Gather the relevant documentation
The information needed for your loan application will vary between direct lenders. However, it’s best to have the following details on-hand for reference:
- Business and personal bank statements
- Your company tax ID number
- Your business plan
- Your business financing proposal
- Information regarding your industry, such as market reports
- Your business credit score
3. Fill out an online application form
Launch the loan application form on the direct lender’s website, then follow the prompts. If you need to, you will generally be able to save your application at any time and return to it later. The sooner you submit your completed application, however, the sooner you can get approval and receive your required funds.
4. Await your application outcome
You should then receive an outcome on your business loan application within just 24 hours.
5. Receive your funds once approved
If your application for a direct lending loan is approved, you can then expect your required funds to be deposited into your nominated bank account in as little as 48 hours.
Need a Small Business Loan? Apply Online
Applying for a small business loan online from a direct lender is quick and easy to do. As long as business owners meet a direct lender’s eligibility requirements and have the correct information on hand, they dramatically boost their chances of receiving the working capital they need. Plus, with fast turnaround times and flexible arrangements, direct lending offers several advantages to borrowers where traditional lending falls short.
Contact us at (714) 500-6622 to learn more about your small business loan options with Zinch. You could qualify for up to $250,000 in just 24 hours.
