Online business finance solutions like LQD Finance and PayPal have brought transformative changes to how businesses access funding to fuel growth, increase capacity, and get through rough times.
By relying on cutting edge technology and automation, online lenders have streamlined loan application processes and removed the hurdles involved when applying for loans, especially for low and middle-market businesses.
Despite the incredible benefits that these platforms offer, businesses need to remember that the mode of operation and benefits differ depending on the service. Furthermore, lending solutions are specific to the business’ needs. Finding the right lender should be a priority for every business.
How LQD Business Finance Solutions Compares to PayPal Business Loans
Loan terms and conditions
Online business lenders are incredibly dynamic in loan terms and conditions. The loan terms and conditions vary depending on the goals and aspirations of the lender. Most of the terms and conditions are designed to optimize the loan process and target as many businesses as possible.
LQD Financing offers a vast range of small business funding solutions with favorable terms and conditions. The loans provided include;
- Growth capital loans
- Purchase order financing
- Refinancing
- Expansion and acquisition loan
The terms and conditions for each of the loans are customized to fit your business needs. LQD Financing considers your growth projections and debt in place of equity while drafting the terms. The minimum requirements and documents are indicated to allow businesses to determine which loans work best for their situation quickly.
Most of PayPal’s business loan terms are also favorable. However, the requirement to have a PayPal business account that has been in operation for at least three months, as well as requiring businesses to process their payments through the platform, prevent some businesses from accessing loans using this platform.
Ease of application
Through collaboration with small businesses, data collection, and automation, online lenders have fueled a paradigm shift driven to enhance accuracy and ease in loan application among companies. These efforts have translated to reduced costs, increased loan applications, and increased returns for both lenders and businesses.
LQD Finance takes a multi-pronged approach to simplify the loan application process to foster strategic relationships that help businesses keep growing and achieve their goals.
With the assistance of a team of experts, the company can get access to all the funding options available, the requirements, and any possible limitations. This helps companies find workable solutions now and in the future.
LQD Financing also provides an online loan application portal with comprehensive details of the minimum requirements and documents to make the process straightforward and transparent.
With PayPal, part of the conditions like the documents required is vague. This makes loan application a two-step process since the applicant has to make initial contact to get a list of the necessary paperwork. This takes time since the applicant might not have some documents required, yet they already spent time applying for the loan.
Speed of funding
For some businesses, how soon they get access to the credit is a make or break factor. With banks, this ranges anywhere between several weeks to several months.
One of the selling points for online lenders is increased efficiency. Through integrated systems and client data, online lenders can verify, approve, and disburse loans in a shorter time.
LQD Finance relies on sophisticated technologies like LQD Matrix and LQD Synthesis and flexibility to provide a financial reprieve to businesses in a wide range of industries within a short time. Most of our underwriting process is automated to increase efficiency and speed up our processes and fund small business loans of up to $10.0M in less than 30 days.
PayPal has a shorter disbursement window. However, considering the prolonged application process, it might take longer to secure a loan from initial contact to when the loan is deposited into the business’ account.
Repayment terms
The commercial finance market offers stringent and one-size-fits-all repayment terms for micro-middle businesses. For firms to experience the value of the loans extended to them, the repayment terms should be flexible and customized to the size, nature, and growth curve of the businesses.
Online lenders see this alienation as an opportunity, and some lenders let the company choose a reasonable time within which they can pay the loan without compromising the growth of the business.
LQD Finance allows businesses up to three years with an APR (Annual Percentage Rate) of 15%-19%. The extended repayment period enables businesses to focus on productivity, increased capacity, and rapid growth as opposed to clearing the loan.
Our structures are designed to help your companies acquire funding and make the most out of it while chasing new opportunities and growing your business.
PayPal requires you to pay the loan weekly. This can be stringent for companies that rely on cash flow to stay afloat. Weekly loan payments also need thorough bookkeeping by the business, which takes time and might drag the efficiency of the business down.
Loan limitations
Loan limitations are the lender’s way of protecting their interests and shareholders by eliminating businesses they feel are not ideal candidates for loans.
LQD Finance has an objective approach to helping borrowers access funding with the help of our experts. Our full suite of short term business loans is comprehensive and dynamic to the needs of individual businesses, and we ensure transparent experiences that allow us to build relationships with our borrowers.
Our goal is to provide as many businesses with financing as possible without being numb to their needs or being limited by the same credit boxes that make it difficult for companies to access funding from banks.
PayPal business loans are quite stringent especially on first-time borrowers, which limits the scaling of the business. PayPal only allows businesses to borrow 35% of their annual PayPal sales. First-time borrowers can only borrow $125,000 regardless of their yearly sales report.
Furthermore, PayPal’s small business funding service is only available to businesses that have a PayPal account and use PayPal to process their payments.
Approval rate
Typically, online lenders have a high loan approval rate. With the tools at their disposal, lenders have unlimited access to data, which, when consolidated with the custom-built technologies, improve the chances of a business getting approved for the loan.
Why Choose LQD?
With both PayPal and LQD, the chances of your loan application being approved are very high as long as you meet the minimum requirements set by either lender. But with LQD, you are able to get a customized loan to best suit your business needs. LQD Finance delivers our solutions up to 3x faster than conventional lenders, while also providing a wide range of short term business loans and working capital solutions to meet the needs of all businesses.
To fuel growth, increase capacity and production, and expand, every business needs a lender that understands their needs and the team at LQD is here to do just that. Contact us today to find the best financing solution for your situation.
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