Speed is the essence of modern business financing
Posted by GeorgeVelvet on January 13th, 2014
For any entrepreneur it is important to get business financing and there are many finance companies that have loans that are custom made for entrepreneurs. A business loan is a specific type of cash loan that is used for meeting business expenses. It doesn't matter to the financer the purpose of using the loan but it matters a lot to the entrepreneur because they have multiple requirements where cash flow is important.
Any business is based on successful handling of debit and credit. There is scarcely any business that doesn’t have debtors and creditors. Some businesses are based on taking products on credit and selling them on debit. Once the debtor makes the payment the business pays the creditor. This is a successful model that has been followed since ages. However, there are certain expenses that require cash flow. For an entrepreneur expenses like payroll, marketing and promotions and renovations and expansions are cash expenses. Here debit and credit don’t work. For meeting such expenses cash flow is required and this cash flow is often a challenge. The financers offer business financing for such requirements.
There are hundreds of large, medium and small sized financers that are engages in the domain of business loan. They have in their clientele list different businesses to which they lend money. Some of them still follow the traditional methods where the time gap between a loan application and the loan disbursal could be a few weeks or even more. Some of the businesses that don’t have immediate cash crunch tend to deal with these traditional financers because these financers tend to charge lower rates of interest. But wait… the last statement may not be true. Today you have financer that work at the speed of lightning and yet offer the most attractive loan terms.
How about business financing where there are no fixed monthly payments or no deadline to meet the loan? How about a business loan without any late penalties or prepayment charges? And what if one adds to these facts that the loan approval could be done in 1 business day and disbursal could be done in 2 business days? This is not a utopian concept because such business financing is possible. There are financers that are able to process a business loan this fast. The news couldn’t be better than those seeking immediate cash flow.
Now is the age of the internet and everyone has every bit of information on their fingertips. For someone to know about business loan is simple really. Even smartphones allow surfing the internet. And when one is able to find accurate information so fast their expectations from the financers are also that high. When someone applies for business financing today they don't want to wait a moment longer than necessary. The best financers also understand the needs of their customers and this is why they ensure that fast approval and disbursal are done and a host of benefits are thrown along with the loan. It is the customer that benefits in the end.
The competitive market of business financing has made loan processing faster than ever. Today when someone applies for a business loan certain financers are able to disburse the money within 2 business days.