While unsecured business loans may not have as many approval requirements there are still a few boxes that you have to check to qualify. We have outlined all these requirements to qualify for an unsecured business loan below:
You may not need to put up any assets or provide collateral to qualify for an unsecured business loan but there are still income requirements to get your application approved. You will need to provide 6 month’s bank statements and have a turnover of R1 mil per annum of more to apply with Business Loans.
It is preferred that you and your business have a clean credit profile, however in some circumstances assistance can be given where your credit profile is not good.
You must own an Existing Business
Your business must have been trading for at least 1 year at the same premise top qualify for an unsecured business loan.
Credit card sales, EFTPOS transactions or regular cash flow in your bank account is preferable when applying for an unsecured business loan.
Unsecured business loans do NOT require any form of collateral or for the business owner to put up assets to be approved for a business loan.
Type of business
If you have been trading for over a year and have regular cash flow, any business can qualify for an unsecured business loan.
In summary, if you:
- Income of R 1 million per annum or more…
- No security needed.
- Clean Credit record.
- 6 months bank statements.
- Consistent Cash flow.
you are eligible to apply for an unsecured business loan.