With competition becoming fiercer in business, small to medium enterprises find it harder to compete and stay ahead of competitors and in many cases, this is due to cash shortages. Access to instant capital for SME’s can be one of the biggest factors that can help them grow their business and keep their competition at bay. An unsecured business loan, is, therefore, one of the best options for SME’s looking for instant capital when unforeseen expenses arise.
Let’s discuss the advantages of an unsecured business loan for small to medium-sized businesses.
- No Collateral
Putting up collateral to finance your SME is a risk that not many business owners are willing to take. An unsecured business loan requires no collateral at all – which means you do not have to give any sort of security deposit or stake your assets to secure the loan. Removing the risk which is a huge advantage for business owners applying for a loan.
- Faster Disbursal
The 3-day approval process for an unsecured business loan is far shorter than the months taken to receive approval for a secured loan. Business owners generally apply for a loan when their business requires capital instantly, making an unsecured business loan a great advantage for SME’s.
- Shorter Deadlines
Unsecured business loans are repaid over shorter periods which makes it easier for a business owner to plan budgets and removes any long-term liability, giving SME’s added flexibility and making access to capital that much more easier.
- Unrestricted Financing
Unlike a traditional loan where you must stipulate what the loan will be used for, an advantage of an unsecured business loan is that it does not have such restrictions. It is left up to the business owner to determine what the capital will be used for as long as it is for a business expense.
- Income of R 1 million per annum or more…
- No security needed.
- Clean Credit record.
- 6 months bank statements.
- Consistent Cash flow.