If you just had more money, you are sure that your small business can take off to the next level. The assets that you might use for collateral are all tied up – leaving you with none available. The good news is that it is still possible for you to get the money you need. Here are some things you need to know about unsecured business loans and why they might work for you.
An unsecured business loan is easy to get and they are becoming more competitive all of the time. More and more lenders are making funds available for this type of loan. So, not only are the funds getting easier to get, but also the rates and other features are becoming better. Right now, it is possible to get as much as $150,000 through some companies with a minimum of about $5,000.
Besides not needing any collateral, another thing that makes these loans so attractive is the reduced paperwork. Generally, you will not even need a business license. Some will not even require a business plan of any kind, but others will. This enables you to get down to the lending agency or apply online right away for the money you need.
The restrictions are also limited, too. With some unsecured business loan lenders you are free to use the money as you see fit for your business without the lender telling you what you can or cannot do with the money.
The payment terms on an unsecured business loan are flexible. You can get anywhere from 24 up to 84 months to pay back the loan. The lender will limit you on this, though, depending on your credit situation.
Getting an unsecured business loan also makes sense when you want to start a new business, as well. Business start-ups can be costly because you need to buy all your equipment and materials, rent the office space, printing expenses and promotions, and hire the personnel you need just to get started. A business loan can be obtained within two or three days after you fill out the paperwork and you can be on your way with that new business. The paperwork is greatly reduced, too, because you will need very little documentation.
Although no collateral is needed for an unsecured business loan, there will be a basis as to how much you can receive. The primary focus to determine this amount will be your credit rating and an ability to pay the money back. These things will also determine the interest level that you can get, too.
As with any financing, you should always shop around to find the best deal. Do not make the assumption that just because the first lender you approach is willing to extend you the money you need that it is the best deal. It will take a while to look around and find the best deal – but it is worth it in the long run, and you will be the one that saves some money.