Instead of going to a single lending institution, business owners should go to a marketplace lender instead. There are many advantages that a marketplace lender can offer to SMEs in India. Traditional lending institutions are under serving their customers on products, service, and prices. And in most cases, they are too strict in providing small business loans and mortgage loans. They make it difficult for small business owners to find a lending institution that will give them a loan.
When business owners look for a single lending institution, they spend a lot of time and effort going from one lender to another. And more often than not, they don’t have a lot to choose from. Traditional lending institutions will offer four to five loan products with low amounts.
Better Alternative for Business Loans
The good news is that there’s a better alternative than looking for a single lending institution. SMEs can go to a marketplace, such as Loan Frame, to find better-priced business loans. SMEs gain access to several finance companies within the marketplace. There’s no need to go from one website to another because the online marketplace already has different lenders within a single platform.
While most business owners still turn to traditional lending institutions for their funding needs, there are others who are already benefiting from online marketplaces. They gain access to different finance companies within a website. Below are other reasons why SMEs should consider going to a marketplace lender instead of a single lending institution.
A single lending institution will provide fixed or variable business loan interest rate. However, the choices are limited. Some of the loan products they provide include term loans, credit cards, and lines of credit. However, individuals who require flexibility with their business loans should consider going to a marketplace lender. One will be able to provide loans that serve different purposes. Finance companies can also provide a wide range of loan sizes based on the needs of the business. Traditional lending institutions have a set loan amount, and can’t offer lower than it. On the other hand, a marketplace lender can easily provide a small loan amount when needed.
Applying for traditional business or mortgage loans can take a lot of time. One of the advantages of going to a marketplace lender is that its process is much faster. And because they are not traditional lending institutions, they don’t need to worry about strict regulations during the approval process. More often than not, they don’t require a lot of paperwork as well. Business owners will spend less time preparing the documents, and the single lender institution will spend less time going through the application. The process of getting business loans is much faster through the marketplace.
These are just some of the reasons why it is better to go to a marketplace lender, such as Loan Frame. Business owners can look for the right loan solution by looking at different finance companies within a single platform. The marketplace lenders offer loan products based on the needs of the business, and not own.