5 Ways How Technology is Helping SMEs for an Easy Loan Approval

Updated on: 15 Dec 2023 // 4 min read // Business Loans
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Just about a decade ago, getting a loan for kick-starting your entrepreneurial venture or simply expanding your existing business meant persistently looking for interested investors, which consumed quite a lot of time, and required you to give away some stake in the business to the investors.

Of course, you could also ask your friends or family members to fund your business, however, in this case, the amount of money you could garner was rather limited. While there were banks which offered commercial Business Loans, but the sheer process of applying for a business loan and the documentation involved was extremely cumbersome. And even then, the probability of getting rejected was rather high.

Fortunately, those testing times are behind us. This is the era dominated and highly benefitted by technology, and these benefits trickle down to Small and Medium Enterprises or SMEs as well. Today, in order to get a quick loan for the purpose of establishing or expanding your business, all you need to do is get in touch with an online lending platform like MyMoneyMantra.

If your business doesn’t have substantial profits to boast about, and isn’t established in the true sense of the word or lacks creditworthiness, leading banks may often reject your business loan application. On the other hand, online lenders may readily approve the same. The difference? Most online lenders are increasingly supportive of new businesses and wish to offer them help. Then again, in cases where the revenue generation or credit history of a business is less than ideal, online lenders compensate for it by levying a higher interest rate. While they end up earning increased profits, your business gets the much needed financial boost, thus leading to a win-win situation.

However, this isn’t all. When you choose to get a business loan online, you stand a chance to enjoy numerous other benefits, including but not limited to:

1. Enhanced Efficiency

Filing an online loan application has now become as easy as brewing a cup of coffee. It only takes a few minutes, and the result is ideal. Online applications notify you as soon as there is an error in the form, thus ensuring that everything is perfect right in the first go. Then again, the automated system ensures that you are asked only those questions which are relevant to your situation. Besides, there are no repeat questions, so you save time, as well as the much-needed peace of mind while getting your work done.

2. Increased Speed

Thanks to the advent of technology, today lending institutions are facilitated with state-of-the-art software which are specifically designed to process a loan application, within a matter of just a few minutes. Right from checking your business loan eligibility for the loan, to analysing your credit report, all of it can be done in an exceptionally short time span. This enhanced speed has made it possible for lenders to process an application and give approval on loans in as little as 1 to 3 days, something which would take numerous weeks, and even months earlier.

3. Minimal Documentation

When applying for a business loan online, you can simply upload a scanned copy of the requisite documents, without having to run around in order to get multiple copies of the same documents. Besides, some lenders offer you the alternative of syncing your bank account with the application, thus further reducing the need for documentation.

4. Faster Processing

Once your application is submitted in full, you will likely get an approval in less than a week’s time. Not only this, but the loan amount will also be disbursed in your account in just a matter of a few days.

 5. Safety of Information

It is obvious for you to be concerned about the safety of your business, and that of your finances, especially when there is little or no human involvement in the process of loan application. However, you should rest assured that all reputable online lenders ensure that the information submitted by you is completely encrypted so that it doesn’t end up in the wrong hands. Now that most banks and lending institutions offer a wide array of online services, they all offer the utmost level of security in a bid to attract more and more customers.

Considering the increased convenience, speed, efficiency, safety pertaining to the application, processing, and disbursal of a business loan, it wouldn’t be wrong to say that technology has come down as a boon for all modern day businesses.