Bank loan has been faced with a new wave of competition in the last decade as a surge of online lending companies and their new benefits have captured the attention of many prospective financial consumers. This has been particularly difficult for banks because of the convenience factor of online companies. These companies offer fast services and often require less paperwork. Banks, on the other hand, tend to be the most formal and often also the most stringent as far as bank lending procedures go.
Nowadays, there are still many reasons that banks attract customers. Often, people already have a relationship with their bank based on their prior banking needs and they feel familiar and comfortable dealing with a name and people they are used to transact with. Banks are also the most traditional form of lending and banks usually offer some of the lowest interest rates available.
There are many drawbacks to bank lending, especially for the modern consumer. Where time is one of the most valuable commodities in today’s business or individual, banks have the lengthiest lending procedures. They have extensive paperwork and documentation requirements. And due to the volume of bank lending loan requests, they receive compared to relatively few associates, long waiting times are experienced by potential customers. Additionally, customers are limited to the bank’s business hours, which can often create a schedule conflict. While online lending companies are available 24 hours a day.
Lending today has become a dynamic field that entails all kinds of businesses. With such a high demand for various lending products, it is no wonder that the lending industry as a business itself has grown by leaps and bounds. It has been forced to adapt to the most modern needs demanded by its consumers. With its customers ranging from commercial giants to those with great credit to those with bankruptcies and other credit problems, everyone poses a genuine need for various lending products.
Banking lending services have adapted as they now offer a new window of opportunity for small businesses and individuals that need a fast start-up loan approval process. Some banks now offer cash in as little as 72 hours, with no tax forms, no business plans, and no collateral. They can now offer the straightest line to unsecured business loan funding, at great rates.
The lending industry is no longer confined to just banks and credit unions. People interested in personal and commercial lending today find they have an array of options. The internet has added a vast base of financial companies that offer new and flexible lending products to its target market as well.