What is online financing?
- Kinds of Online financing Products
- Reasons to Choose Online financing
If you’re trying to borrow money to finance a business, a car purchase, or a house, you’re probably asking yourself the question: “What is online financing?”. However, in many ways, online financing is similar to your experiences with a loan, only with the added aspect of convenience.
Usually, when you apply for a loan, you’d still have to inquire with a bank. From there, you will be given instructions on how to start the loan approval process. For instance, they may ask you to visit a branch of that bank and submit several loan documents.
While many people have relied on this traditional loan method, online financing is a far more efficient way of borrowing money. It can be an umbrella term to refer to the number of third-party financing services or online loan providers that offer a variety of choices compared to banking or other financing institutions.
Arguably, one of the best advantages of online financing is that you have more bargaining power to get a deal that works best for you — be it in versatile loan products, manageable term rates, or the loan amount itself. Continue reading to learn more.
The application process for different types of online loans may vary depending on the company, but there’s no mistaking that it’s far more convenient to apply for one as opposed to a bank loan.
When you’ve already made a decision on your chosen online financer, you would simply have to visit their website. From there, you can already access information from their Frequently-Asked-Questions (FAQs) regarding their loan process. Further, you also don’t have to be redirected to a different portal or platform just to start applying for the loan. Instead, you would only need to visit a page on the site where you can already start filling out the details of the loan you want.
To better illustrate this, say you’re applying for a new loan on Asialink Finance Corporation’s website. You will only be required to input a few pieces of information including personal information, employment details, and contact details to start off your loan approval process. After which, you will be immediately contacted by customer service personnel who will give you more details about the application.
Meanwhile, bank loans are considerably more difficult to gain access to. Most bank lenders would still require you to contact a branch or send them an email. This can be frustrating for some individuals as you may not really get an answer even after several days.
Kinds of Online Financing Products
With online financing, you have the option of choosing from various kinds of online loans that are offered by that particular financing company. Some online financers also specialize in a loan that’s not really easy to come by in traditional versions of financing — examples of which are car and truck mortgages.
With many online loans at your disposal, you don’t have to limit yourself to the typical personal loan that comes at a fixed rate. Instead, you can still compare and contrast different loans to see which one best suits your personal preferences and financing requirements.
Online financing companies can offer a wide variety of loan products and services that aren’t really limited to only personal loans. You’d also be able to find collateral loans such as financing for brand new and pre-owned car and truck, taxi loans, multicab loans, and tricycle and motorcycle loans.
Having multiple options gives you the freedom to shop around and research for the lowest interest rates, smallest down payments, shortest approval time (within 1 day), and the like, allowing you to find an arrangement that’s right for you.
Reasons to Choose Online financing
One of the main reasons why people choose online financing instead of other services is that they’re significantly easier to apply for. As mentioned before, there is no need to get routed through different channels — phone, email, chat — before you have all the requirements needed.
On another note, online financing also offers you more opportunities to get the most out of your loan. For whatever loan that you apply for, you can still guarantee that you’ll get a reasonable down payment amount, lower interest rates, highest appraised value (for car loans and second-hand car loans). You’ll also enjoy non-variable term periods that don’t exceed the total value of whatever you want to borrow funding or pay for.
Regarding the process itself, you can also remit your payments using convenient methods. Nowadays, it’s no surprise that many people are preferring cashless and easy payment methods.
The same is true for when they’re paying off the amount they borrowed from an online financer — they can pay it through multiple payment channels that are secure and can be done in the comfort of a smartphone or a laptop. Likewise, any documents required for the loan may be submitted online without the hassle of visiting a physical location.
Many people like you might be asking “What is online financing?” when you encounter this term. Although this type of financing is similar to any kind of financing service that you’re familiar with, the main differences lie in the process, variety of products, and the benefits.
As mentioned in this guide, online financing involves third-party financing companies and institutions that aren’t necessarily associated with banks. As the name suggests, this method of financing is mainly transacted through online channels, which gives you, the customer, utmost convenience.