A new survey by the Federal Reserve Bank found that in 2013, 1 in 5 small businesses used an online lender, reports Entrepreneur. Typically online loans can be pricier than traditional loans and it just as difficult to qualify for one as a traditional loan, so the reason for the growth in online lending is that it is convenient. Online loans generally offer a wider range of products that better suit the needs of small businesses, such as, short term loans to manage a cash emergency.