No Collateral? No Problem: Unsecured Business Loans for Growth
When a business needs extra cash, most people think of a traditional secured loan. With this type of loan, the borrower pledges collateral in exchange for cash. Examples of collateral include equipment, real estate, vehicles or cash. If you do not have enough collateral to qualify for a secured loan, an unsecured business loan can be the answer. You can have access to working capital to bridge the cash flow gap, make staffing hires or purchase new equipment to grow your business.
How Unsecured Business Loans Work
Although they share many similarities, unsecured business loans are different from secured business loans. Since unsecured business loans do not involve any collateral on your part, they are considered a greater risk to the lender. Because of this, interest rates can be higher with unsecured loans. A way to work around this is to apply for a longer-term loan to offset the risk. You have probably previously held an unsecured loan and may not have realized it. Student loans and credit cards are two common forms of unsecured loans. If you have previously been denied a secured loan, you can still qualify for an unsecured loan.
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Unsecured Business Loans are a Funding Alternative
When asked about funding, many people think of traditional banks loans. These are loans that require putting up collateral, such as money, equipment or property, in exchange for funds. Traditional loans also can have a long wait time for approval and funds disbursement. An unsecured business loan is an alternative funding options for those who do not have collateral. Instead of struggling with cash flow issues, utilize an unsecured business loan to meet your funding needs.
Benefits of a No-Collateral Loan
Small businesses usually do not have the amount of collateral needed to secure a traditional loan. This leaves these businesses stuck in a place of not being able to grow without sufficient funds. Unsecured business loans can make a world of difference. They are easier to obtain and offer more flexibility than traditional bank loans. By obtaining funds through an unsecured business loan, small businesses can make gains in the industry. Use the funds to expand your staff to grow your business larger. If there is a product that you have been wanting to launch, but you do not have enough funds to make happen, an unsecured business loan could be the answer. You can even use the money from an unsecured business loan to move to a larger space or add an additional location. The possibilities are endless for how your business can benefit.
How to Apply for an Unsecured Business Loan
Unsecured business loans are available to almost any established business in any industry. Qualification is based on the calculated risk your company presents. There is the possibility for unlimited funding potential to extend your line of credit as your sales increase over time. Even if your company has poor or little business credit, you may still be able to qualify for an unsecured loan. Small businesses find unsecured business loans to be a more favorable funding option due to the eliminated need for collateral. It is hard to grow your business without working capital, but when the business has not reached a point of having enough collateral, it can be a challenge to secure funding. When you work with Factor Finders, we can help you secure funding even if you have experienced financial difficulties or your business is just starting up.
Ways Factor Finders Can Help
It is important to find a lender that understands the challenges your business is facing. You could spend time researching lenders for your industry, but that process can be long and time consuming. Let Factor Finders lend you a hand. As a broker, we will locate the best lender for your business. We have a large network of lenders to choose from when making recommendations. After the connection is made, you can begin the application process and be on your way to having a working capital boost in no time.
Reach Out to Factor Finders
At Factor Finders, we are here to help you find a funder for an unsecured business loan. Reach out to us today and we will be in touch within minutes to match you with the right funder for your company. Stop struggling with cash flow gaps. With an unsecured business loan, you can grow your business and achieve greater stability.