Looking to Add Funding? Unsecured Small Business Loans Might Work for You
Whether you’re trying to get the doors open to a new small business, or whether you have an established business but are considering ways to fund new additions, deciding which type of loan to get is an important decision. There are many options in the marketplace, and each has its place. However the ever-popular small-business loan might be the best source of funding for you. A popular and common loan, the SBA loan has been around for many years and has helped numerous entrepreneurs start and improve a variety of businesses. This financial source is one you should put at the top of your list.
Generally, loans come in either the secured or unsecured category. A secured loan is issued by a financial institution or lender who requires that you put up collateral against the loan. This can come in the form of your home or other real estate, business equipment or even other financial assets such as a 401(k) or other retirement account. If you default on the loan, the lender has the right to take the asset from you as a way to cover the investment. However, with an unsecured loan, no such collateral is necessary. In this way, unsecured loans are less risky, as you have no worry about losing any of these items.
A Small Business Loan can be granted as either secured or unsecured. In your business, an unsecured loan has many advantages over the secured option. First, these loans allow you to borrow within a large range. Whether you’re looking for a couple thousand dollars to help with business need or if you want to borrow $2 million to purchase a new office, these loans can help.
The Small Business Loan can also be granted with favorable terms that are flexible and meet your needs. You may be able to take up to 20 years to repay your loan, or if you prefer, you can set the term at five years.
Business owners with good credit scores can take advantage of these loans. Typically, a lender granting this type of loan will be looking for a credit score of 700 or above. Perfect credit is not needed, but you do want to have things in good order.
Your rate will vary based on your credit score and other financial factors. Once you have your Small Business Loan in place, you will be able to use it to fund your business in any way you see fit.