Why are online business loans best & safe for your small business

For a small business, apart from being an instant funds source, a business loan should also be a safe bet. This safety is ensured by the lack of collateral cover in an unsecured business loan. This has resulted in the democratization of business loans as a larger segment of small business units can now access such loans. One of the reasons is also the limited asset pool of small business units that are yet to establish themselves. Thus, when a business is planning to raise short-term finance, an unsecured loan can be the best business loans option.

Fintech lenders leverage latest technologies like the power of the internet, cloud computing, big data, and AI to process loan applications faster and with better security measures in place. The online platform extends from the loan application until the loan grant, which is in accordance with global security standards and no data breach. Thus an online business loan is a safe bet for a small business because of the following reasons:

1.       Protects profit margins

By offering quick business loans and easy liquidity, business loans rescue business units from the vicious debt traps practiced by unorganized moneylenders charging exorbitant interest rates. Further, the business saves on considerable time by approaching a Fintech lender, then undergoing the long drawn, time-consuming loan approval process in banks.

2.       Dynamic ticket size

The amount of an unsecured business loan is not limited by the value of the underlying asset offered as collateral. Thus, a collateral loan extends from Rs. 1 lakh and all the way up to Rs. 1 Crore to fit one’s business requirements.

3.       Flexible Repayment Structure

Fintech lenders often provide flexible options as regards the frequency of loan repayment to the borrower. Thus, there is an option to pay EMIs on a fortnightly or monthly basis as per the loan agreements. One can thus obtain a quick loan as well as promptly repay the loan as per convenience.

4.       Multi-purpose utility

The Fintech lenders do not restrict the application of the unsecured business loan as long as it is used for business purposes. Neither do the lenders minutely monitor the loan application. Hence the applicant can utilize the business loan for short term working capital purposes as well as long term capital funding. The loan tenure varies between 6 months to 36 months.

5.       World-class security

Most Fintech lenders utilize the latest technology platforms and pass on the cost savings from tech usage to their customers. Some of the security measures are:

  • Data security framework: Fintech lending works on enterprise content management system governed by highly encrypted data security framework and standards as per regulatory framework.
  • World-class secure data center facilities and Infrastructure: The data centers are hosted through secured public & private cloud operating from India. All mission-critical systems pertaining to daily operations operate with minimum N+1 redundancy, which reduces customer lag time.

There are adequate security measures on the website portal & mobile application, with authentications such as
1. Form authentication using the Sign In Portlet with extensible adapters for checking and storing credentials
2. Single-Sign-On (SSO) solutions
3. SAML plugin JAAS integration with application server

Thus, in conclusion, with the adoption of advanced technology and adequate security measures, fintech lenders are a safe bet for an unsecured business loan. Right from start to end i.e the loan application process until the e-signing of the loan agreement, the entire online process is secured and encrypted.