If you are seeking an unsecured business loan, you may find that they often take the form of a business cash advance. Lenders who provide these often do so for small businesses with bad credit or a lack of collateral and don’t qualify for ‘traditional’ loans.
If you are a business owner seeking an unsecured business loan, you need to be keenly aware of two things: your credit score and your income. Lenders are going to look at these two things, and although it may be possible to get the unsecured business loan you need with only one of these, usually this isn’t the case. You’ll increase your chances of obtaining the loan if you have a positive business credit history.
Keep in mind that unsecured business loans are a great way to pay off high interest debt with a fixed or variable rate. Lenders who offer these loans are a bit more picky because there is nothing backing up the loan. Because of this, unsecured business loans come with a higher rate, whether variable or fixed, and shorter terms. But even with a higher than normal rate, you may find that it’s much cheaper to use an unsecured business loan to repay your other debt.
Before you apply for that unsecured business loan, there are some things you can do to increase your chances. First, check the lender out thoroughly. Make sure the lender is reputable, and has been around for a while.
Next, make sure you take the time to read and understand the terms of the loan. You’ll need to review the paperwork carefully and, while it’s not a lot of fun, make sure you have read the fine print. Make sure you understand it as well, and that there isn’t any unexpected verbiage. Ask lots of questions, and make sure you get thorough answers.
Review the terms of the loan thoroughly to be sure there are no hidden charges. Ask questions about any fees, and be sure you understand any penalties or fees if you are late or miss a payment.
Once you’ve read all the lines and in between them as well, and you feel comfortable with the terms. It’s time to sign on the dotted line. But be sure you make those payments on time, every time. Remember: You’re building your own reputation as a business owner as you build up your business. Make it count.