About Unsecured Business Finance Loans   


Many entrepreneurs and business owners are familiar with commercial bank loans. An application, with financial documentation, is submitted to a bank. The bank reviews the paperwork and requires collateral to approve the loan. The applicant agrees and obtains capital funding. That’s traditionally the way the commercial loan process works, but now, unsecured business finance loans are a different way to fund a business’ needs.

About Unsecured Business Finance Loans

So, what are unsecured business finance loans and what benefits do these debt instruments offer? Here’s what you need to know about unsecured business finance loans:

No Collateral Requirement

Unlike traditional loans, unsecured business finance loans require no collateral from the borrower. Much like a revolving line of consumer credit, unsecured business finance loans provide capital without having to commit assets. Although higher rates are typically involved, the burden of providing substantial collateral is eliminated, making it a great trade off for small businesses.

High Approval Rates

It’s certainly no secret banks are very risk averse and this is precisely why these institutions require not only collateral assets, but also, significant financial disclosure. Conversely, unsecured business finance loans are more easily accessible and do not have the various barriers to capital associated with traditional loans.

Quick Funding

Traditional commercial bank loan approval processing are notorious for their length of time. It can take several weeks or months to receive approval. This is because all the paperwork must be evaluated and the collateral must be appraised. That takes a long time. But, unsecured business finance loans are different because there’s little paperwork involved and there is no need for collateral.

Mediocre and Poor Credit Okay

Yet another barrier to traditional bank loan approval is the need for good to stellar credit. Moreover, both the applicant business and the owner must have good credit to be approved in the majority of cases. But unsecured business finance lenders aren’t as strict, putting less emphasis on commercial and personal credit history. This is one of the main reasons of their high approval rates and also why so many small businesses choose unsecured business finance loans over traditional bank loans.

Flexible Repayment Options

A huge advantage of unsecured business finance loans is the ability to choose from several repayment options. Depending on the lender, borrowers are able to repay weekly, bi-monthly, monthly, or in other intervals. In addition, some unsecured business finance loans are payable as a percentage of the small business borrower’s credit card transactions. Such flexibility provides businesses with helpful options for easy repayment. If you are in need of a Texas Business Loan, please contact us at http://www.proactivelendinggroup.com

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