In the past, you would likely have to ask a friend or relative for money if you were short on your rent or fill out a paper application at a local bank. Today, you can get money within minutes by filling out a short online application. Let’s take a look at a few of your online loan options.
1) Payday Loan
A payday loan typically allows individuals to borrow up to $1,000 without a credit check. While this enables anyone to get a small short-term loan, they come with high interest rates and other penalties if the loan is not repaid within 15 days.
2) Personal Loan
While geared toward those with bad credit, personal loans are generally available to anyone who needs help consolidating credit card or other debt. These loans can also be use to fund a vacation, wedding or a business venture for those who have no other way to fund their new company.
3) Peer-to-Peer Loan
A peer-to-peer loan is a hybrid of a traditional loan and a crowdsourced loan. First, you submit an application to a peer lending site and are either declined or approved for a certain amount of money. Next, the loan is funded by individual investors who are then repaid in monthly installments.
4) Small Business Loan
There are a variety of small business loans that you can apply for online. In some cases, you will apply for a traditional loan or line of credit that will paid back over several months or years. You may also be able to apply for a merchant cash advance, which uses your credit card receipts as collateral to secure the loan. Factoring loans may also be applied for online, and they use current accounts receivable as collateral to secure the loan.
5) Crowdfunding
Crowdsourcing involves an online request for funds from the general public. The money raised could be used to pay medical bills, organize a class trip or help a sports team travel to a tournament. Instead of repaying the money raised, donors may be entitled to rewards based on how much they have given.
According to Web.Loans, “As long as you have access to the Internet, you have access to as much money as you need or want to fund your lifestyle. Although you will eventually have to pay the money back, having access to capital can make it easier to make a large purchase, start your business or expand operations to ensure financial security for yourself and your workers.”
