It seems like everything about modern life moves faster than it ever has before. Political movements come and go in the blink of an eye, economic cycles seem to spin quicker than ever and the world of modern business certainly operates at an incredible pace. All of which has made certain business practices less and less applicable to some aspects of modern operations.
Take loans, for example. Applying for a business loan involves filling out lengthy application forms, submitting reams of documents, speaking to various people at the lender and then a weeks-long wait for approval and fund transfer. And with the wheels of modern business turning so quickly, that might not be fast enough to take a growth opportunity, see off a payroll issue or prevent delays from equipment failure.
However, fortunately, new lending practices have emerged to meet the needs of countless small and medium-sized businesses (SMEs) around the UK. These types of businesses contribute more than £2 trillion to the UK economy each year, yet records show that 57% of UK businesses have experienced late payments, leaving them short of cash flow.
This is why same-day loans are fast becoming the go-to funding option for thousands of SMEs each week in the UK. Let’s take a closer look at the growing need for fast funding and what same-day loans can offer businesses that need access to more rapid cash.
What Are Same Day Loans
A study by the British Business Bank found that 43% of SMEs seek external financing annually. And more and more of these are turning to online lenders who can offer more convenient, faster and less demanding loan options. This increasing move towards digital application and same day loans is a real departure from the typical bank-dominated lending of the past.
By filling out a simple application and providing a few documents, businesses can receive funding within 24 hours. Ideal if you need to settle payroll requests, deal with equipment failure, pay for increasingly expensive materials and countless other unexpected business occurrences.
The Benefits Of Same Day Loans
We’ve already mentioned the speed and convenience of same day lending, and there is little doubt that this is the main reason businesses are leaning towards digital lenders. However, there a number of other important reasons for the growth in same day lending, including:
Flexibility: Fast business loans online offer a much greater degree of flexibility than some traditional lending. For example, they can be used to cover emergency repairs, expand operations or simply to manage cash flow fluctuations. In fact, according to the UK government, around 30% of SMEs use external financing to do just that. And an increasing number of businesses are using online same day lending.
Less paperwork: To secure a same day loan businesses only need a minimal amount of paperwork compared to traditional funding options. This allows business owners to dedicate more time to running their business and less to loan admin.
High approval rates: Nearly two in five SMEs have faced challenges getting traditional funding, according to the Federation of Small Businesses. Online lenders tend to have much more lenient eligibility requirements, meaning businesses are more likely to be approved.
Of course, before applying for and accepting any kind of loan, businesses should always consider the terms and conditions. This includes the interest rates and fees, repayment terms and reputation of the lender.
As online lending continues to grow in popularity, and same day loans become more viable for more businesses looking to keep pace with modern business, the financial landscape is evolving and innovating to meet their needs.
To find out more about how you can get a business loan fast or to speak to someone about same day business loans online, contact the Century Business Finance team today.
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