With traditional lenders maintaining a tight leash on credit, more and more business owners turn to a new breed of lenders for their financing needs — a group found entirely online. Fueled by web-based tools that speed up the application process and determine eligibility in minutes, these lenders typically approve more loans than traditional banks. They can provide financing much quicker than their traditional counterparts.

Many online lenders use technology to evaluate businesses differently from traditional lenders. For example, online lenders may access a business’ transactions and cash flow via their bank account’s website or examine other digital data points to analyze a business.

What is an Online Business Loan?

An online business loan is a source of funding that businesses can apply for and access via online lenders. Online business loans are useful options for small businesses in particular, because the application process is easier, and approval time can be shorter than traditional business loans.

Shorter Term Online Business Loans

This lender provides business owners with loans ranging from three to 24 months. These loans are often used for specific, shorter-term projects such as purchasing inventory, launching marketing campaigns, or general working capital. Some examples of shorter-term lenders are:

• OnDeck – works largely with “Main Street” businesses and offers loans of up to $250,000. OnDeck has loaned over $3 billion nationwide. (Disclosure: OnDeck is the sponsor of this site)