It is now commonplace to apply for consumer, mortgage and consolidation loans and lines of credit online, but many people still have difficulty comprehending an online application for a business loan.
Obtaining a commercial loan requires a more detailed process than that for most personal loans because the financial specifics of both the prospective entrepreneur and the business are scrutinized. Some banks will accept online applications for $50,000 or less and promise a response in three days. Applications for larger amounts require a more traditional process.
An Internet search, however, reveals that you can indeed apply for grants and business loans online.
An example of a clearinghouse is listed below:
Business Finance.com advertises itself as a clearinghouse of information for more than 78,000 sources of capital. Fill in the form and await a response.
Face-to-Face not likely to Fade
As research shows, some online business loan opportunities exist. However, attempting to secure a business loan online is not likely to become an acceptable procedure in the near future.
Banks are conservative, low-risk institutions by nature. Bankers tend to want to press the flesh and when it comes to commercial lending, they have a legitimate need to meet you personally. They want to make an estimation of whether or not you are a capable businessperson. There are the routine procedures that could be processed online, but intangible matters associated with the entrepreneur’s personality cannot be surmised online.
Secondly, this matter of small business grants needs continued explanation. We have all seen the televisions ads urging entrepreneurs to take advantage of grants to start a business, but this claim requires serious clarification. There are grants, but those for small business are primarily tax and wage refunds for hiring qualified individuals to train on the job. Or companies are issued grants to conduct new product development research.
There are other means of securing small business development grants through the Economic Development Administration. But nonprofit and local government involvement is typical, with those funds usually funneled to the types of agencies in small-business development efforts.
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Chris’ combination of academic credentials, career experience and temperament ideally suit his calling as a business development advisor. Clients say he has a mind for business and a heart for service.