When it comes to secured and unsecured business loans, you want to rest assured knowing that your finances are sorted. Lending Connect links you with the right lenders that suit your business and lending needs without the hassle. We take the time to understand your business before offering our advice. We take the hassle out of finding an appropriate lender that fits your business requirements.
There are two types of loans; secured loans and unsecured loans. An unsecured business loan allows for your business to borrow without collateral, while a secured business loan is secured against an asset. If the money cannot be paid, the lender can receive an asset, as a way to protect them against risk.
Unsecured business loans are often easy to attain and are fast! However, they usually come with a much higher interest rate. Unsecured business loan interest rates are dependent and calculated on the risk. For example, if for instance you are a new business owner and your cash flow may be inconsistent, meaning a higher risk for lenders and that is the reason a higher interest rate is required. These loans are provided to business owners based on their turnover and credit history. Unsecured business lending may be the right choice for you if you are in need for a short-term cash flow and it is an easier way to get money fast.
A secured loan is a loan that is backed by collateral. It’s a loan that is guaranteed by an asset, such as your car or your home meaning the lender can take possession of it and use the money from that to pay back the loan. A secured loan has less risk, as the lender has valuable collateral that weighs the loan if the payments are not delivered.
Most banks make sure to have some sort of collateral before allowing a business to take a loan, as this is less risk for the bank itself. However, here at Lending Connect we can guide you to different alternatives of lending to keep your businesses on its feet.
Lending Connect takes the time to understand your needs before connecting you with the most suited loan lender. Don’t go through the process alone and let us help you choose which option is best for you and your business.