Unsecured Small Business Loans are becoming the most popular choice for business owners when it comes to growing their business.
What are unsecured small business loans? And how do they work? What kind of value can this type of business loan give to your company?
How Unsecured Small Business Loans works
Unsecured Loans allows you to get access to credit to cover any business needs without providing any security. It is a short-term loan – typically up to 12-months but in some circumstances, it could stretch up to 36-months.
Best 5 benefits of an Unsecured Business Loan
Many SME often cannot provide any collateral when borrowing money. Therefore, unsecured business loans are the preferred choice if your business is having tough times and you cannot afford to repay the loan. With this type of loan, a lender cannot take your assets and sell it to recover the debt. In addition, your business can continue operating by using these assets. Clearly, businesses owners must pay the loan to the lender as soon as possible.
Here the top 5 advantages of this financing option:
- Fast and easy application process: unlike other business loan options, the application process for an unsecured loan is fast because does not require any personal or business assets as security.
- Quick access to your funds: usually you can get you money in the same day of application approval because you do not have to provide any collateral.
- No personal or business collateral required as security: In case of default or bankruptcy, the lender will not be to lay hold on any of your personal or business assets.
- Simple to get access to Finance: few SMEs meet the stringent lending requirements of the banks. Thanks to unsecured loans business owners have the option to apply for these funds even if do not meet the banks’ rigorous lending criteria.
- Relationship building with a lender: Loans without security represent a high risk for a lender. After all the repayments have been finalised, the lender could be able to offer better term to the borrowers, and the level of trust in its business has improved.
Unsecured business loan for any business needs
Unsecured business loans are used to buy machinery, equipment, and inventory to increase productivity and make the business grow. Furthermore, you can use these loans for:
- Cash flow problems
- Renovating your office space
- Upgrading your actual equipment
- Improving your product range
- Optimising your advertising on Google or Facebook.
- Creating websites
Do you need a finance broker for your business?
At Lending Connect we have a 24-hours approval process.
Get in touch with us and we will do the rest for you guiding you through a pre-approval process that qualifies you for one of our best lenders. When it comes to your business’ needs, having the right person by your side is important to improve your company. Moreover, if you need a mortgage broker, we can refer you to one of our partners.