Are Online Lenders Banks or Not?

The question that is perplexing loan regulators and business owners as of late is: are online lenders banks? More importantly, are they shadow banks? Are they considered to be institutions that have the same power as a bank but without the same responsibilities?

The difference between a bank and an online lender is simple: online lenders are not tethered by certain restrictions and they are also not covered in case of emergency (think bail outs and tax exemptions).

Another difference between traditional banks and online lenders is how they evaluate risk. There are far more requirements for small businesses to even be considered for a loan through a bank, whereas online lenders cut down on costs and can factor in more risk when awarding loans to business owners.

The Online Lenders Alliance has began using its clout to bring together alternative lenders to agree on a certain set of rules for online lenders. As the federal government begins taking online lenders more seriously, lenders like Fast and Easy Funds know that it is up to them to show their good faith so that they are not weeded out with the bad lenders surfacing online.

Fast And Easy Funds is committed to being the best online lender for small businesses, offering the best cash advances, easy term loans, and asset based lending structures available.

Alternative lenders have been able to provide American businesses with loans precisely because they are not banks. Traditional lenders have become a bureaucracy that created online lenders in order to bring the small business owner back to the forefront of American industry, and recreate the American Dream.

Online Lenders Alliance to The Rescue

Now that online business loan lenders have been making headlines, it seems timely and appropriate for organizations to come out of the woodworks to step in during these uncertain times. The Online Lenders Alliance has promised to step up its efforts to out the bad lenders and keep the public safe from predatory lending practices.

The Online Lenders Alliance have made themselves the so-called police of the industry and the hope is that this move will instill more confidence in lenders. Easy term loans are flying off the shelf left and right, and the booming economy is back in full swing.

Lisa McGreevy, the Chief Executive at the Online Lenders Alliance wants to weed out the negative: “We’re not interested in having bad actors or people who do fraudulent business giving our good lenders a bad name.”

Critics of online lenders say that easy term loans are simply too easy to get. The Online Lenders Alliance has a set of rules and guidelines that all online lenders should use when discussing the details of their easy term loans and cash advances. These guidelines are just that, guides, but using them will instill more confidence in lenders and the industry in general.

The Online Lenders Alliance aims to ensure that lenders are completely compliant and that customer satisfaction in the industry increases. Fast and Easy Funds has always paid close attention to our wording and customer services for this very reason. If more online lenders get involved, we believe that the industry as a whole will benefit. If we benefit, so will businesses.

Small Businesses Are Bouncing Back from the Recession

When the housing market crashed in 2008, the recession hit hard. Of course, it was a global pain felt by countries all over the world. But the United States definitely fell on hard times, and some would say it felt like it was never going to end; but, it did and the U.S. is bouncing back. Recent statistics show that small businesses, especially businesses in the early stages of development, are taking out more loans and owners are using them to expand and grow their business. Where do small businesses go when they need extra money? They turn to small business loan lenders like Fast and Easy Funds easy business financing and online lenders in order to get the working capital they need for development and expansion.

Business loan approval rates are currently on the rise. Percent increases differ by state, but the larger metropolitan areas seeing an increase totaling close to the 30 percent mark (New York saw an increase close to 39 percent and Boston saw a 33 percent increase in approvals for small business loans). Online lenders like Fast and Easy Funds are part of the reason why business are getting the capital they need to grow. Historically, online lenders were the only source of income when it came to approving loans for small businesses at competitive rates, with fast turnaround times, and high approval rates.

Approval rates are surging and the U.S. economy is seeing a definitive boost in capital injections received by small businesses. All combined, business loans are reaching into the billions of dollars and the output is major growth in the private sector. The U.S. economy is bouncing back and it is small businesses that are leading the way!

7 Steps to Getting an Easy Term Loan for Your Business

While it may not be as easy to access working capital for your small business as it was before the recession, it is necessary for all lenders to loan money to small businesses in order to make any money themselves. The process of obtaining a term loan has become stricter, the key is knowing how to go about securing a Fast and Easy Term Loan.

Fast and Easy Funds presents a simple 7 step outline for obtaining financial solutions for your small business:

Step 1: It is critical to get yourself known with the lenders and build a relationship with the people at the lending institution before the small business loan is needed. Allow the key contacts or decision makers to get to know your company before you ask for working capital. Forming a relationship with a lender will give them insight into your company that you may not be able to prove on paper.

Step 2: Make sure that you have a thorough plan of how you will use this extra cash flow. There are good and bad reasons to take out a loan; looking for money to grow your business is different than looking for money to bail the company out of ongoing financial losses.

Step 3: Decide how much your company needs. Asking for too small of a loan or too large of a loan can be a big mistake and/or raise red flags with independent small business lenders. Have a well thought out budget that is supported by financial projections.

Step 4: Know your credit score. It is important to know what lenders look for and how the scores compare to their expectations.

Step 5: Research your lenders and make sure that they are a right fit for your business’ loan needs.

Step 6: Carefully and thoroughly prepare the Easy term Loan package.

Step 7: The waiting period. At Fast and Easy Funds, we have a fast, Easy Term Loan approval process and have your working capital to you in as little as 2 weeks.

How Paying off Your Easy Term Loan Affects your Credit

Knowing that credit scores play a huge part in your financial future, Fast and Easy Funds knows that it is no wonder people are constantly searching for ways to maximize their business credit scores. One common strategy many people use to build their business’ credit score is to pay off credit debt, which can give their business credit score a fast boost; especially, if the business was carrying a large balance. It would seem obvious to apply the same ideology to other forms of debts like an easy term loan, but you should be aware that you are making yourself less credit-worthy if you close your lending account. Fast and Easy Funds explains the fine print to gaining credit through installment loans like easy term loans.

  • Type of credit and length of credit history.

Credit scores are valued based upon numerous different factors involving credit lines. Your credit score is a healthy composite of credit cards accounts, car loans, mortgages, student loans, etc. This shows that you are able to maintain different types of credit, which is good in regards to your credit score.

The FICO score will take into consideration your open and closed lines of credit. If an easy term loan is in good standing and paid as agreed, it can be reflected on your credit score for up to 10 years.

  • Paying off an easy term loan early.

Keep in mind that credit scoring models prefer open and active accounts with a solid history of on-time payments. Paying off your easy term loan early will not hurt your credit score, but leaving it open and managing payments will show that you have account responsibility over a period of time.

  • The bottom line.

Paying off your easy term loan and eliminating your debt is good for your financial well-being since you cannot predict a financial future. If you are solely paying off your easy term loan to boost your business credit, then don’t. Making your installed payments on time over the course of the loan will be more beneficial to your credit score.

Easy Term Loans Explained

An easy term loan from Fast and Easy Funds is the most common form of small business loan out there. It is pretty easy to understand the terms and conditions of an easy term loan. The most basic explanation of an easy term loan is when you borrow a fixed amount of money (usually for a specific purchase) and then you have to pay the loan back over a fixed amount of time, at a fixed interest rate. Fast and Easy Funds is an independent loan company that offers easy term loans for businesses. We want to help you fully understand an easy term loan so that you are knowledgeable when it comes time to commit to an easy term loan.

How do easy term loans work?

An easy term loan is what most people think of when they think of small business lending options. Easy term loans are loans with a set repayment time, a set number of payments, with a fixed or variable interest rate. Easy term loans are available for small businesses depending on the business’ needs, credit score, cash flow, and a few other factors.

Your small business can use an easy term loan for virtually any business need, including specific purchases like equipment or inventory, working capital, paying back other debts, meeting tax obligations, among many other small business needs.

What is the total cost of an easy term loan?

The structure of an easy term loan predicts your monthly payments and you will know exactly when the loan should be paid back by. To determine your personal payments and total payback amount, you will need to first figure out the interest rate that Fast and Easy Funds offers.

How can I qualify for an easy term loan?

Most businesses qualify for a Fast and Easy Funds easy term loan, but the factors of the loan will vary. The interest rate, length of the loan term, and maximum loan size will depend upon your business’ revenue and credit rating.

Telltale Signs it’s Time to Consider a Business Term Loan

As a small business owner, it can be very stressful when you consider your business’s future growth. There are many aspects that you go over and over in your mind, such as marketing strategies, hiring, technology, inventory, etc. etc. The biggest question you may be asking yourself is if you did the right thing by starting your business. No matter how prepared any business owner is, you can never predict when you need an emergency source for funding.

Even though taking out an easy business term loan from Fast and Easy Funds means relatively fast approval, the process can still take two weeks. Fast and Easy Funds wants you to be as prepared as possible when it comes time to apply for a loan, here are some telltale signs that it is time to apply for a Fast and Easy term loan.

  • Your company needs more inventory. Small businesses always need to have enough inventory to fill orders. Easy term loans can be the financial boost your business needs to stock up on inventory.
  • The company needs more equipment. Using a term loan to buy equipment for your business can allow you to purchase the equipment necessary to conduct business and sometimes be written off in your taxes.
  • You need to hire more employees. You will need a Fast and Easy, easy term loan to have the capital necessary to sustain growth and support new salaries.
  • You’re running out of space. As sales increase, so will your need for space. The smart thing to do is evaluate current and projected sales so you can determine when you need more space, don’t wait until your business is “bursting at the seams”.

Using an Easy Term Loan to Expand Your Landscaping Business

Fast and Easy Funds offers the best lending program in the United States for growing businesses. Since Easy Term Loans from Fast and Easy can be given on an individual basis, they can often be used for small business loans that can be used towards expanding your landscaping company. Once you have established your landscaping company and made it past the impediment five year mark, there are many ways in which an Easy Term Loan from Fast and Easy Funds can benefit and further grow your landscaping company. Here are some excellent ways to put your Easy Term Loan to good use:

  • Invest in newer and specified equipment- Having specialized equipment and new machinery means that your landscaping company can take on larger more complex projects and will give off the appearance of a more professional company.
  • Hire the right employees- You could use the Easy Term Loan to hire employees that possess specific skill sets. For instance, you can hire a mechanic that can work on your landscaping equipment and eliminate any down time.
  • Expand your working capital- Taking on landscaping projects without any capital is impossible and a fast way to dig your company into a hole. You can use your Easy Term Loan from Fast and Easy to use as working capital and take on larger landscaping projects.

These are just a few ways that you can put your Easy Term Loan from Fast and Easy Funds to use to grow your established landscaping company. Fast and Easy Funds offers low monthly payments and can move you through the approval process, giving you access to funds in as little as two weeks. Call today to start your Easy Term Loan application!