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7 Myths about Online Loan Lenders

The most common belief that everyone has is “don’t trust everything you read online”. This belief usually results in fear of buying any services available on the internet. But it’s not always correct.

Here are the 7 most common myths about online small business loan lenders with facts.

  1. Online lenders are fraud
    – This belief has developed due to some deceitful lenders that exist within the industry. And yes it’s okay to be a little skeptical about getting loans online. However, there are a majority of operators who have legitimate positive records in money lending business and in fact some are backed by large venture capitalist and hedge funds.

  2. Computer decides the loan approval
    – Compared to a bank where you can talk to your loan officer face to face and strike a deal with a handshake, many people think a computer will decide your loan. Instead with Pineapple Funding, your loan approval is decided by a lender who can connect with you over the phone or email. Your loan approval is not always decided by a computer algorithm.

  3. Online lenders are very expensive and offer unreasonable rates
    – Interest rates provided by online money lenders can be higher than banks due to the absence of collateral or credit check. Having said that, there are many lenders operating online who offer competitive interest rates. It all comes down to the type of loan you are applying for and your risk classification.

  4. Online loans are only for those who can’t get loans from banks
    – Online small business loan lenders are often more flexible than banks, providing approval within a few hours and transferring fund usually the same day. Studies show that getting your loan online gives you a ton of benefits over  traditional banks, for example getting the quick loan approval that too without any need to prove collateral.

  5. The only important factor in choosing an online lender is interest rate
    – Although comparing interest rates is an important factor while evaluating your business needs online, there are other factors  that need to be kept in mind. You should consider the terms of the loan and how much time will it take for you to repay the loan, etc.

  6. Online lenders don’t provide long term loans
    – There are many online lenders available who provide up to five-year term loans. There may be some restrictions present but you have to do your research and select the best one for you.

  7. Rejected by one online lender, no other lender will consider you – This is not true. Every lender has their own factors and assessments to decide if you are a good fit for them. If one lender denied granting you a loan, there is often another one who will be willing to lend you money.

Now that you got your facts straight you can go ahead and do your research. At Pineapple Funding, we will help you find your online small business loan lender who fits your needs.

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