Before the Internet, how would a company select a capital provider for their business? In most cases, they would get the capital needed from their local banker.
While the underlying creditworthiness of a business was certainly important, so was a relationship. A banker knew the local business owners. In many cases, their children went to school and played sports together.
In the Internet age, how does a business select their capital provider? Some things to look for include:
- Testimonials and references: Many businesses will have testimonials of customer experiences. This is important because in many cases, it describes the experience that the prospective customer can expect when working with a business.
- A user-friendly application process: It used to be that applying for a financing with your local banker was a long, cumbersome and painful process. With improved technology and access to most information just a keystroke away, lenders are able to provide a quick and user-friendly financing application process to their customers. Lending decisions are made in a matter of hours with funding the next day.
- Repeat customers: In the days of old, banking was based on relationships. In the Internet age, a relationship with your lender still matters. Many businesses will often borrow capital many times over from the same lender. The lender will come to know the business and can provide valuable information. Additionally, subsequent financing are often easier because components of the application process can be reused in future financing applications.
All of these items can be found on the websites of most online lenders.
Online lenders such as Zip Capital Group can be a great way to meet your business’ funding needs. We offer continuous access to working capital that can help you keep your company running. Contact us today to discuss your working capital needs.