Marketplaces have always been the preferred shopping choice since forever. In the offline world, marketplaces that showcased a variety of products sold by multiple merchants made it easier for a shopper to pick and choose the best product at the best price. When this model moved online (with the likes of Amazon, ebay, Flipkart, makemytrip), ‘convenience’ got redefined and was taken to another level.
But did you know that the marketplace model exists for your business finance needs as well? And it offers much of the same advantages that you may be enjoying while shopping at a marketplace for products. Here are some compelling reasons why an online business loans marketplace – like Loan Frame– should be the first place you visit for your business loan needs:
1. All lenders in one place
Choice, as they say, is always a good thing. Traditionally, borrowers approached banks for their business capital requirements, who offered a couple of off-the-shelf loan products in return. Whether it suited the borrower’s needs or not. Then, niche NBFCs entered the picture and business owners had a slightly expanded choice. The alternative to these two channels was an informal source, such as the local moneylender. Nowadays, borrowers have a wider bouquet of lenders and products for focused needs. An online marketplace with a wide network pools all these choices in one place, saving you the effort of sifting through multiple sources.
2. You control the situation (from and form)
Given that almost all possible sources and products are put up in front of you à la carte, you control who you borrow from and in what form. More than choice, the main function of marketplaces is that they also build awareness, which helps you make a more informed choice by being in control.
3. CIBIL safe
Did you know that casual enquiries for loans can affect your CIBIL score negatively? To know how, read here. The advantage with a loan marketplace is that unless and until you formally apply for a loan with a registered lender – which is preceded by sifting through choices, algorithm-driven eligibility checks, and a preliminary consultation – your CIBIL score is not called up. This keeps your score intact until the point at which you have made an informed choice to go ahead with your application.
4. Right Product
Term Loan, Loan Against Property (LAP), Working Capital Facility, Mortgage Loan, and perhaps Trade Finance. Borrowers rarely think beyond the most popular 4-5 loan products. Did you know that Loan Frame has more than 50 products on offer from its registered lenders? Once again, bringing all choices in one place makes you better aware and helps you to pick wisely.
5. Best Rate
The kind of choice we have spoken about isn’t just about having a larger menu in front of you. It leads to tangible gains, starting with the rate of interest you pay. Picking what has been offered to you by your bank or resorting to a product out of a lack of awareness ends up increasing your cost of borrowing. Once a specific lender and particular product is mapped to your unique need, the risk dynamics for the lender change resulting in a lower interest rate.
6. Higher Loan Amount
Since borrower profile and the purpose of the loan are better mapped to the product, loan eligibility also improves. This is the other tangible benefit of the loan marketplace’s wide product base. And these tangible benefits are not just a result of wider choice. The structured advice that marketplaces provide also helps improve eligibility. Read here about one of our clients who benefited from not just wider choice but also our personalised advice.
In most cases, you get to know your loan eligibility in a matter of seconds or at the most, a few minutes. This is because these objective eligibility evaluations in online loan marketplaces are algorithm driven. Your initial application is also speedier since you do not have to submit bulky background information such as financials, business plan, property/land records, etc. upfront.
You can apply for a loan on an online marketplace in barely 4 easy steps wherever you are, whenever you feel the need. We are open 24/7! The convenience doesn’t end here. Most of the document verification is done digitally, either based on copies you upload or direct source access through banks, land registry, income tax office, etc.
So when you need a business loan next, shop for savings at an online loan marketplace. Be the one making the choice rather than have choice imposed on you.