There are a couple of reasons why unsecured business loans are more desirable then a traditional secured loan. As a small to medium sized business that is ready to scale you may NOT have enough collateral or assets to apply for a secured business loan making growing your business almost impossible without access to the finance that you require.
Doing research into the different types of business loans on the market you may have discovered that qualifying for a small business loan isn’t as easy as you may think, making unsecured business loans a much more attractive option for small to medium sized business owners. In this article we will walk you through how an unsecured business loan works and why they are the right option to help you achieve your business goals.
Why Choose Unsecured Business Loans?
It is a very flexible loan that can meet a range of finance requirements including:
- Buy more assets
- Expand your business
- Pay debt
- Pay Tax
- Increase your cash flow
- Upgrade your business premises
Benefits of Unsecured Loans
The main advantage for business owners is that there is no need to put up any form of collateral or assets to secure and unsecured business loan. If you are not able to pay back the loan repayment, the lender does not have a claim over any of your business’s property or assets.
Other advantages include:
Larger loan amounts – With a secured loan you are limited to the amount of collateral supplied as to the amount of loan that you will be eligible for. As you are not supplying collateral for an unsecured loan you can apply for the amount that you require to expand your business if you meet the requirements
Easy to access – Less documents are required to validate assets and collateral, which makes unsecured business loans easier and quicker to obtain.
Additional flexibility – You are not required to stipulate what an unsecured business loan is for which gives you extra flexibility to spend the loan as and when you require.
Am I Eligible for an Unsecured Business Loan?
- Income of R 1 million per annum or more…
- No security needed.
- Clean Credit record.
- 6 months bank statements.
- Consistent Cash flow.
then you are eligible to apply for an unsecured business loan.
Where to Get Unsecured Business Loans