If you are looking to start a new business and need some upfront money to get things going, an unsecured business loan may be just the funding option to get your business off its feet. With unsecured business loans becoming more competitive, they are quickly becoming a viable option to fund your business' start up and operations.
What Is an Unsecured Business Loan?
An unsecured business loan is a type of loan that does not need any collateral to qualify for. Generally, with a minimum loan of $5000 and a maximum loan of $150,000, these loans are quite attractive because of the reduced amount of paperwork required. In many cases, it is not necessary to have even a business license or business plan, enabling you to apply online or get to the lending agency quickly (and get your money approved).
Payment terms on unsecured business loans are often quite flexible, typically with anywhere from 24 to 84 months given to pay back the loan. Depending on your credit situation, the lender will set a term for you to pay back your loan.
Unsecured Business Loan for Start-Up Businesses
These loans can be a great opportunity when you are looking to start a new business. Business start-ups can be expensive, especially with buying materials, renting office space, paying for marketing and promotions and hiring personnel. An unsecured business loan can be obtained in just 2 to 3 business days after completing the paperwork, making it a great option to get started with your business.
Because there is no collateral required to receive an unsecured business loan, your credit rating will be the primary dictator of how much and the terms of what you will receive. Your credit rating will also determine the interest rate at which you get the money.
One way to get the best rate on your unsecured business loan is to get your business credit scores established. You can do this by separating your personal credit from your business credit, meaning you would not use your social security number to obtain your loan. This is the easiest way to ensure that your application for business financing gets approved.
Finding the Best Unsecured Business Loan
Anytime you are looking for financing for your business, you should shop around to secure the best deal. Just because someone offers you a loan, doesn't mean that it is the best (or the only lender that you can secure). And quite often, it is not the best deal or terms that you can find. Shopping around is always necessary to make sure you are getting the best deal. In the long run, the extra time you spend doing due diligence and finding the best loan will save you money.
If you are searching for financing for your business, research your unsecured business loan options today. With so many lenders vying for your business, chances are with good credit you can secure a very nice startup loan (with good terms), and get your business off to a great start.