Comparing Traditional and Online Business Loan Option

By: Tradeudhaar.com

Speed of Approval

Traditional: Lengthy application processes can take weeks. Online: Streamlined platforms often offer quick approvals within days.

Documentation Requirement

Traditional: Extensive paperwork and collateral may be needed. Online: Minimal documentation, with a focus on digital records.

Interest Rate

Traditional: Generally lower rates for established businesses. Online: Competitive rates, with more flexibility for newer businesses.

Credit Score Impact

Traditional: May have a significant impact on credit scores. Online: Focus on broader business health; individual credit less emphasised.

Collateral vs Unsecured Loan

Traditional: Often requires tangible assets as collateral. Online: Unsecured options available, reducing risk for borrowers.

Flexibility in Loan Amount

Traditional: May have rigid loan amounts based on established criteria. Online: More flexibility, with tailored loan amounts to suit specific needs.

Accessibility for Startup

Traditional: Challenging for startups without a proven track record. Online: Greater accessibility, making it a viable option for newer businesses.

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