Online Marketplace Loans
Non-bank loans have become an increasingly popular alternative for borrowers who have been denied a loan by the bank, or don’t have the time to go through a lengthy application process. A new generation of online-only “marketplace loans” is designed to appeal to business owners who have lower credit scores, or who have been in business for a short time. These loans tend to have much higher interest rates than bank or SBA loans, and to have more lax credit score criteria. Typically, these loans are for 1 – 5 years and come with a fixed monthly payment. Online marketplace loans can be used for virtually any business need.
Features:
- Quick turnaround time (compared to banks)
- Less effort and documentation needed
- Fixed, predictable monthly payments
- Helps improve business credit score (with on-time payments)
- Available for many uses
Things to consider:
- Higher interest rates than bank loans
- Little to no mentorship
- May have pre-payment penalty
- May require collateral
- Typically requires two years of business history
Credit Score Requirements:
Low
Annual Interest Rates:
7% – 30%
Turnaround Time:
2 – 7 days
Loan amounts
Loan range:
$25 000-$500 000
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