Did you know people used to have to go into physical stores to get cash fast? Luckily, times have changed. Thanks to new technology and the rising demand for unsecured personal loans, borrowing money online is now a popular option. Online lending has quickly become the go-to option for a lot of people who need money fast. And it’s no surprise why! From personal loans to lines of credit, online lenders can give you a streamlined and easy way to borrow money.
When looking for a short term loan, you might be looking into online lenders like Cash Factory USA. But before you apply online, we understand you may have some questions. So, to help clear the air, we want to explain why borrowing online may be a smart choice. In this guide, we’ll share some helpful information about online lending, including its benefits.
What is Online Lending?
Before we get started, it’s important you first understand what online lending is. This type of lending is typically completely done online as opposed to at a bank or other storefront lender. Online lenders are different form traditional in-person lending. They focus on easy access, a simple process, and directness. This makes them a popular option for many who need quick cash.
With traditional banks and storefront lenders, you will often need to provide one or two forms of picture ID. But online lenders tend to use other methods to help identify consumers and complete the process. Also, they use the automated clearing house (ACH) or the debit card network to get money to you quickly. Storefront lenders, however, may often not be equipped to do that.
Benefits of Online Lending
While there is a long list of benefits when it comes to online lending, below are a few of the top advantages:
Convenience
What may be the biggest and most obvious benefit of online lending is the convenience it offers. In recent years, online shopping has gained popularity, due to its convenience. So, it’s no surprise online lending is experiencing the same trend.
Unlike traditional banks and lenders, online lenders allow you to complete the entire process from the comfort of your home. This means that the process of filling out your application is often less stressful and takes less time. Online lenders aim to make their applications simple to complete. After all, you have enough to worry about.
Accessibility
While banks offer many services, they often can’t handle loans on demand. Don’t believe us? Try it for yourself. Walk into your local bank branch, ask the teller for a $1,000 loan, and say you need to be approved in the next hour. You will find that most banks are not set up to deal with immediate requests.
Additionally, with online lenders, you don’t have to wait for a lender’s business hours to begin the application process. A lot of online applications are available 24/7. So, you can get started at any time!
Lastly, online lending options can give access to people who may not have otherwise been able to use traditional providers, or those who live in rural or remote areas.
Safe and Secure
In today’s digital age, many people are becoming more and more nervous about leaving their sensitive data on unsecured paper trails. Storefront lenders often require hand-completed applications as well as paper copies of sensitive documents. They then keep copies of these in files in their stores. But it’s not surprising that consumers would be concerned with where their information could end up.
No storage system is guaranteed secure. But online lenders typically use software-as-a-service and other cloud databases to encrypt and protect your information. This is because reputable online lending platforms are regulated. There are laws they have to follow to ensure transparency and data protection. This can help give borrowers peace of mind when applying for loans. So, you’ll want to do your research and make sure you’re choosing a reputable lender when searching for a loan. For example, Cash Factory USA uses 2048-bit encryption to help keep your personal information safe and secure throughout every step of the process. If you have any questions about how the lender uses or stores your information, feel free to ask them directly!
Online lending doesn’t just offer digital security. It can also be more secure to deal with funds exclusively online. For example, if you’re walking around with cash, you could lose it, or worse, have it stolen from you. One of the benefits of online lending is that online lenders deposit your money directly into your account quickly and securely.
Privacy
Dealing with your finances at home means that you get to keep your financial life private from strangers. While there’s no shame in requesting a personal loan, some people want to keep this to themselves. And online lending can offer you a level of privacy you would not get from going into a store.
Comparison
Shopping for a loan online also means that you can compare lenders more easily and in real time. You can review terms and rates, and also check out reviews for online lenders to read about other peoples’ experiences with them. For example, here’s a look at our reviews on Trustpilot. Cash Factory USA takes pride in knowing that we continue to meet our customers’ needs and are a reliable source for installment loans (in eligible states).
Efficiency
Applying for a personal loan should not be a hassle. Instead, it should be a seamless and fast process. At Cash Factory USA, our application takes only minutes to complete. So, you can get your money fast when you need it.
Quick Cash
Online lenders also process applications quickly. A lot of online lenders nowadays approve within hours or even minutes. This is a much shorter timeframe, compared to the days or weeks it can take if you go through a bank. Once approved, online lenders typically deposit funds directly into your bank account. This can allow you to access the money you need much faster. At Cash Factory USA, once approved, you’ll typically receive your funds on the same or next business day.
Online Lending with Cash Factory USA
Cash Factory USA is committed to providing new financial products and high-quality service. We’ve served more than 100,000 customers, and we can help you too. We gear our products towards fulfilling very specific needs when options are limited. And, while a short-term installment loan is not a recommended long-term financial solution, you may need it at times.
To learn more about our rates and terms before you apply, or to check lending options available in your state, check out this guide.
Why Online Lending May Be a Smart Option
Online lenders have helped to transform the loan industry just like Uber did to the transportation industry. This is because borrowing money online offers a level of convenience, speed, and flexibility that traditional lending options simply can’t match. And with so many options available online, we’re sure you’ll find the right loan for your needs. So the next time you think about applying for a loan, consider checking online first. But before you apply for any type of loan, make sure you read and understand your loan agreement. And, most importantly, only borrow what you need and can afford to pay back.
High-interest loans can be expensive and should be used only for short-term financial needs, not long-term solutions. Customers with credit difficulties should seek credit counseling. The opinions expressed above are solely the author’s views and may or may not reflect the opinions and beliefs of the website or its affiliates. Cash Factory USA does not provide financial advice.
* This blog contains links to other third-party websites that are not endorsed by, directly affiliated with, or sponsored by Cash Factory USA. Such links are only for the convenience of the reader, user, or browser.