Owning a business comes with a lot of risks. For some small business owners, they find it difficult to acquire the working capital they need for their business when they need it most.
From employee emolument to periods of lower income, it’s difficult to ensure that your small business will have enough money to continue the usual business activities. Hence, many small business owners have turned to specialist lenders for unsecured business finance.
Alternate financing for small business is a great option for smaller businesses that need additional money to run their business smoothly.
It takes a lot of dedication to make your business thrive. However, when applying for a loan to grow your business, collateral is always an obstacle as several lenders require borrowers to put up a valuable asset as collateral which is quite difficult for small and growing business who don’t own real estate or vehicles.
An unsecured business loan is perfect for those who need a fast business loan without having to deal with issues of collateral.
What Makes An Unsecured Business Loan Safe?
Higher Approval Rates
Banks seldom give loans to small business. Nonetheless, your chances of approval are better if you seek an unsecured merchant loan.
You are more likely to get the required money you need to maintain business permanence or support impending growth and keep your business strong.
Acquiring an unsecured business loan is faster because there is no valuation of collateral, filling out forms, waiting on documents from other sources.
The process is simpler and more streamlined.
Speedy funding is beneficial to small businesses; the cringe of waiting for weeks and months for a loan to come through is alleviated.
Unsecured business loan offers you ready cash as delay and waiting can affect your business negatively thus, the speed of an unsecured loan can strengthen your business.
Typical business loans from banks and similar financial establishment come with fixed monthly payments.
Options such as an unsecured business loan can provide different repayment options.
At Business Loan Centre Australia, unsecured business loans can be either a daily, weekly, fortnightly, monthly repayment dependant on your business cash flow, therefore, whichever you decide is automatically deducted from your nominated business loan account.
Build A Long-Term Relationship With Your Lender
As time goes by, a lender develops certitude in your firm repayment track record. Good relationships are always vital to business success, however, here at Business Loan Centre, we caution against zeroing in on a single lender.
We have good working relationships with several, top quality lenders. However, we aren’t tied to any one of them, so we can match your present funding need with the perfect source and type of small business loan that matches your requirements.
Types of Unsecured Business Loans
For unsecured loans, lenders are not totally powerless to collect if a borrower breaches repayment agreement.
The different types include blanket business lien, unlimited personal guarantee, and limited personal guarantee.
If an unsecured business loan has a blanket business bond, the lender is able to take over and sell assets of the business owner in other to regain their losses.
A personal guarantee means the lender can come after properties belonging to the individual borrower to recover their losses.
With an unlimited personal guarantee, the lender can take over any of the borrower’s belongings to regain the amount they owe, including interest and legal fees they incur in the process.
Limited personal guarantees are majorly used by businesses that have multiple partners.
How Business Loan Centre Assists
It’s our principle at business loan centre to always do what is right for our small business owners. Working with us provides you a fast, simple and with no obligations funding solutions.
Our small business loan approval process is a simple unsecured financing solution that can get you the working capital you need for your small business within 24hrs.
Business Loans Centre Australia offer loans to small business where either a business loan can be guaranteed over your personal asset for a certain period or unsecured finance based on your business turnover.
There are also specific funding platforms basically designed for your typical business industry.
You will have a dedicated credit manager looking after your application providing answers to your questions right through to settlement funding to help your business succeed.
Personal Guarantees and Risk Involved
Some lenders offer unsecured business loans that actually demand some collateral. That comes in the form of a personal guarantee.
As the owner, you are putting up personal assets instead of assets that belong to your business. That might be your car or your home. If you neglect the business loan, the lender can go after any of these personal assets.
An unsecured business requires certain qualification guidelines. Those factors are likely to include:
- Credit score or credit history
- Time in business
- Sales/revenue history
- Type of business
- Amount desired
- Loan purpose
Here at Business Loan Centre Australia, we take a comprehensive approach to helping each small business client and to establish enduring relationships.
We take the time to listen to you and your story that way we can truly aid your business grow. You need comprehensive, adept advice that pilots you in the right direction.
Unsecured business loans are generally safe for your small business because they are useful, fast and you won’t put your business assets at risk. That gives you the strength and resilience to reform your business into a flourishing success.
At the Business Loans Centre Australia, we are building better businesses together.