Loan micropayments might be a term that you aren’t well aware of yet, but it’s one that’s important to know and understand in the realm of alternative lending - especially for your small business.
While typical small business loans are paid back in a lump monthly sum, micropayments seek daily payments based on a percentage of a company’s daily receipts, allowing more flexibility for the business owner’s bank account.
By paying back your loan via a daily remittance, small business owners don’t have to deal with a looming, bulky fixed monthly payment. Where monthly payments can stress out a business owner, especially during their seasonal off-peak in cash flow, a daily payback allows the small business to steadily chop down their debt with a daily amount that is comfortable for them.
Started in the alternative lending space by lending powerhouse OnDeck, loan micropayments are becoming increasingly more popular with both alternative lenders and borrowers, as the steady flow of repayment allows both the lender and borrower to watch the loan being repaid on a consistent basis.
If you’re looking to seek out a small business loan, consider the flexibility of loan micropayments. Allow yourself the financial freedom of consistently decreasing your outstanding debt in small, easy to chew daily payments. Big lump sums can be exhausting – and intimidating. Don’t let them stand in your way of the financial funding your business deserves.