How Safe is it to Apply for a Business Loan Online?

How Safe is it to Apply for a Business Loan Online?

A good entrepreneur is the one who not only knows how to choose a profitable line of business but also possesses the ability to arrange for business finances. All businesses, no matter how big or small, reach a critical point when funds are required for day-to-day operations; or for inventory inclusion; or for expansion initiatives to lead the business to the next level. Herein, having access to swift Business Loan online is one of the key requirements for start-ups and budding businesses.

It is not a cakewalk to get approval for a Business Loan application from banks and NBFCs always. The strict eligibility requirements make it difficult for most small businesses and start-ups to get access to unsecured business loans. However, you can certainly find attractive offers for Secured Business Loans with them.

For example, You can apply for HDFC Business Loan Online to get loans up to Rs. 50 lakh with quick processing and easy documentation. The HDFC business loan is packed with a host of benefits and tailor-made to match unique business needs. However, you may require to pledge an asset or guarantor to avail the approval.

 

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A lot of small online lenders have also come up in the last few years to finance small businesses with small funding requirements. Online borrowing is convenient as well as quick for obtaining finance within the desired time span.

Tips for identifying online fraudsters and scammers:

Before applying for business loans online, it is important to ascertain whether you are dealing with a legitimate lender or not. Online scams have been on the increase significantly, and many business owners have become victim to these scams. Accessing unsolicited email or text or an advertisement that pops on the web page, you may become a victim to an online scam. Always beware of any too-good-to-be-true scheme as this can very well be the first flag.

Being aware of the modus operandi of these fraudsters may make it easy to identify one. Let’s learn to identify online lending scams and fraudsters:

  • Online lending is contactless lending where one deals with the lender online. However before you proceed with the offer, understand that every legitimate lender has a physical address. Do a thorough search online for company details and search for physical address continuing with the deal. Do not accept a P.O. box number for the address.

  • Many loan brokers may promise to help you find a lender to match with your funding requirement on the pretext of payment of a registration fee or a down payment. If you come in contact any such loan mediator, turn down the offer. Instead, you must contact a free loan marketplace online like MyMoneyMantra and get free loan assistance. You can compare the available business loans for yourself and choose the best match. Besides, a loan executive will help you at each step of loan processing.

  • If someone offers instant cash advance without any application or credit check, be wary of such a claim. These sites or advertisements could be misleading. This could be just a way to extract personal information online.

How to identify a legitimate lender online?

If you are searching for a Business Loan through an online lender, learn about how to identify a legitimate lender. Here are a few tips that will help you assess the genuineness of the lender:

  • Before providing information on a website ensure that the URL reads “https” and not only “http.” The security of the website is signified by the letter “s.” Also, look for a security certificate from a reliable company to ensure the website has been certified secure.

  • Look for a lock icon on the website before making any online transaction. Presence of a lock icon indicates that the data provided is encrypted and the transaction is safe.

  • Check customer reviews. If the negative reviews outnumber the positive ones, then you should not consider dealing with such lender.

  • A background check of the website can be done by searching WHOIS database at Networksolutions.com. The information regarding the ownership of the website and the date of launching etc. will be available. If the site is relatively new, then it is better to be alert and give up the idea of accessing the website.

  • There are some new types of lenders who have emerged in the market recently. They are devising new methods for business owners to obtain loans online. These lenders implement innovative ways of assessing the creditworthiness of the applicant. Unlike traditional banking, creditworthiness is not determined strictly with credit scores. These lenders look for the company’s social media activity and online sales receipts. All that is required from the business owners is a valid document to prove that the company’s business is legitimate and creditworthy. Business owners without credit history also might get loans from these lenders.

These lenders charge high interest rates and processing fees, however. They are able to fill the gap for many business owners who are in need of urgent funds but are not able to get a good deal from traditional lenders.

One should do thorough research and weigh the pros and cons before Applying for a Business Loan Online with these lenders.

Online lending does offer the required financial assistance when it is most, but the business owners should exercise due diligence before providing any personal information. There are a number of legitimate online lenders to choose from. But there are fraudsters and scammers too, who are on the constant lookout for vulnerable cash strapped business owners.

 

Also Read: Things to Do Before Applying For a Business Loan

 

To apply online for Credit Cards, Secured Loans and Unsecured Loans, visit www.mymoneymantra.com, the leading online lending marketplace that offers financial products from 70+ Banks and NBFCs. We have served 2 million+ happy customers since 1989.

Talk to our Loan Specialists toll-free at 18001034004 to know more about our products and offers.

 

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