If you are a business owner, you have come across online lending in your quest for funding. This is a form of financing that does not come from traditional banks. Online lending has successful models such as peer-to-peer lending, lines of credit, merchant cash advances, and factoring. This mode of financing gives borrowers plenty of options, unlike in the past. However, as expected, people have concerns about how legitimate online lending is. So before you take it, consider these things mentioned below.
Confirm Physical Address
As much as an online lender operates online, if they are legitimate, they need to have a physical location from where they work. This location needs to be listed on the website. Once you see the location, you can verify whether it is real through Google maps. If you cannot find it, proceed with caution as the business may not be legit.
Check Reviews From Other Entrepreneurs
Reviews from other business owners can give you more information about what an online lender is all about. However, be cautious when it comes to this. Reviews can be faked by either supporters or competitors. Do not solely rely on them to form an opinion.
Research Third-Party Verification of the Lender
Third-party verifications can give you some confidence that this is a legitimate lender. One institution that is quite popular is the Better Business Bureau. Through it, you can check how a business has been rated. An online company that seeks third-party verification shows that it is trustworthy, and you can depend on it for your online lending needs.
Confirm the Website’s Ownership
Running a WHOIS check will only take a few seconds but will give you the information you need. You will learn who owns the site and how long the site has been on. This can let you know if you are really dealing with an online lender or scammer. If you find any registration details questionable, ask the lender for clarification.
At Hedge Commercial Capital, we understand that online lending might not feel straightforward, especially if you are used to traditional forms of lending. That is why we make the process straightforward by giving you all the information you need. Contact us today for your business financing needs.