You just happened to land at the Loanzen website or somehow through a combination of google search results and webpage redirects, you happened to hear about the ecosystem of “P2P lending” and “invoice discounting” and you are as confused as a penguin in the Sahara can be. That’s not a cause for concern though; most people are, as this is a fairly new concept in the funding space.
That’s exactly what this post is going to be all about; to familiarize you with this environment. So let’s dive right in then. To start with, a P2P or peer to peer lending is a premise where the borrower and lender connect to discuss, evaluate & analyse the credit profile and actuate the loan on the terms agreed upon. The elemental difference between a conventional loan and invoice discounting is that these are easier to access, quicker to process and lent out for shorter durations than bank loans. Loanzen is a market place that aspires to accomplish just that- connect lenders and borrowers in a mutually beneficial manner.
At Loanzen, we believe that easy access to funding should not be exclusive for the big firms alone. As a result, we exploited this thought to create the ideal marketplace for small and medium enterprises to seek out their short term capital requirements.
“Our Mission is to provide the capital required for small businesses to succeed”
“Our Vision is to become the preeminent automated lending platform in India.”
That said, you are probably wondering how Loanzen goes about its business of helping you? So here’s how we do it- it all starts when you’ve paid our website a visit. We’ve figured that you might be interested in a loan or could have landed here by a stroke of luck. If you are indeed here seeking a short term loan, then the first thing we want to do is to make sure that you are eligible. If you are unsure, we have a pop up that comes by, where you can send us your concerns and we’ll address them right away.
Eligibility for a Loan:
Just so you get to know right away if you are eligible for a loan, we have the section right at the top. “Time is money’’ and we want to give you the best of both; as soon as you’ve entered a few basic figures under the ‘are you eligible’ section you get to know if you qualify for a loan. We like to be quite quick about this.
Once we have established that you are eligible for a loan, we’d like to get to know you a bit more. Nothing much, just few significant details such as your credit history, Bank statements for the prior 12 months, stuff like that. We take these details and prepare your Loan file. This is fundamentally a portfolio of your borrowing requirements. This portfolio is essentially used to find you the right lender.
Loan is Approved:
Once we’ve got the right lender to fund your loan, we bring it back to you for approval. If you find the terms of the loan agreement favourable, we are good to go. This is where we ask that you upload copies of your pending invoices. Just so you know, Loanzen operates in the invoice discounting sphere. If you are not familiar, read more about invoice discounting.
The Time Involved:
From the time all the required documents are uploaded to the time the actual loan amount is disbursed, we ensure that the whole deal takes just 5-7 days. One of the ways we achieve this is to ensure that at every step along the way, only the most vital pieces of information are asked. This has a kind of twofold effect
- You are able to locate and upload the required data without delay.
- We are able to shave significant time off our process.
What makes us Different?
Assuming that you now have a reasoned grasp of how we operate, you are probably asking the question- ‘why Loanzen?’ of ‘what makes this different from a bank?’
Spot on! That’s the right question. The idea that lending is an exclusive privilege of the traditional banks is no longer true. The monopoly of banks in the lending space has come to an end. True, banks are a great aid when it comes to financing long term loans/ cash requirements, like purchasing a home or a car; however they are not really empathetic when it comes to ‘banks and short term financing’.Loanzen values your business performance and not just your credit score. Click To Tweet
Loanzen, is all about filling in that void which was created as a result of the demand for easier access to short term funding. What makes us stand apart from conventional banking is that we are all about short term financing and add to that an easier workflow for getting a loan.
Secondly and most importantly, we do not rely on physical collateral which makes the loans we give out- unsecured loans. Makes life easier shall we say. We rely on your future flow of income, to give you that cash today. The benefit of this is that all payments can still go out on time and when the invoices do settle, the loan can be repaid.
But for the most intriguing question of all, how do we stand to gain here? The entire platform would only make complete sense if you knew how we gained, and here’s how we do that- we charge a nominal fee for the loan amount. However there is no need for worry, the amount is insignificant in the scale of the loan. Our gain is in getting out more loans and thereby more income!
Here’s a link to our FAQs. Just in case.