If you are a small business owner, and are willing to scale up your business operations in forthcoming days, you must evaluate the various commercial or financing options available in the market. You might be in need for contingency funds when your business is going through a lean period, or when your business growth needs a financial boost to shoot up operations in the long run. However, when it comes to loaning money from external sources, SMEs and MSMEs are left with very less choices. The historical past has witnessed small business loans being turned down on their loan requests due to the stringent loan approval benchmarks set by banks. Nonetheless, thanks to the advent of digital lending! Today, small businesses have an alternative to borrow online business loans which are more convenient and quicker in comparison to the traditional lending system. Small business loans sanctioned digitally can serve immediate business needs. However, it is very important to ascertain a lender’s reliability before proceeding with business terms. Identity thefts and cyber–crimes have shot up risk and non-compliance levels, causing victims to lose money in crores each year! SMEs and MSMEs are the major targets of scammers, forgers and fraudsters; hence, entrusting your business’s identity in safe hands is crucial. The good news, however, is that advanced FinTech has leveraged safer online lending, and made transactional proceedings a lot seamless.
Let’s look at some of the basic facts about legitimate online lending which can keep your business credibility far from the reach of scammers.
How to Identify Fraudsters?
Most prevalently, fraudsters spot business owners through unsolicited emails or text messages, and malware ads that pop up on a web page. People tend to fall prey to ‘lucrative’ scams because they are duped with things that are too good to be true. So, understanding the common red flags before applying for an online business loan from a lender is pivotal, to keep your interests safe.
- Lender asks for upfront fees – If a lender asks for upfront fees as a registration credit fee or a down payment from you before approving your loan, walk away immediately. Lenders shall only charge you a loan fee when the loan is approved, and nothing beyond that!
- Lender has no physical address – Even if you deal with a lender online, you must do a due diligence of the lender’s physical address. If there is a gap in here, you must understand that the lender’s business has no legitimacy.
- Lender offers cash advance loans – If there are no applications to be filled in or no credit checks to be conducted, yet there is a complete cash advance loan being offered, the matter is quite fishy! The scam is only set up to extract your personal information.
How to Identify a Legitimate Lender?
Here are some of the facts you should look for in an online business loan lender.
- Strong Encryption and Security Protocols – A legitimate lender takes care of his business protocols. A reliable lender has a legitimate _”https”_ website which protects your personal information on both ends through Transport Layer Protocol.
- No Complaints – A good online lender does not have too many bad reviews in the Better Business Bureau (BBB) records.
- An Informative Website – A legitimate lender’s business has a strong background in the past, and his website does not mask information on the company’s front.
Who are Platform Lenders?
Platform lenders are the best companion of small business owners. They do not evaluate a business’s credibility through the business’s credit score only, rather focus on various other flexible and data-driven creditworthiness of a borrower. Online sales receipts are one of the instruments to assess a borrower’s credibility to repay an unsecured business loan. Fintech lenders also offers collateral free Business Loans with attractive interest rate and long repayment tenure, alongside breaking stereotypes of the traditional lending system. In a nutshell, digital lenders are often capable of filling up the essential gaps between businesses and estimated business growths.
TAB Capital’s Digital Lending Platform offers small business loans that are a one-click solution to all your quick business requirements. A 100% legitimate lender as TAB Capital can resolve your business issues with an optimum financial boost and lucrative offers. Apply for your unsecured online business loan Click Here.