Whether you wish to purchase new equipment, update your inventory or simply build your company’s credit, unsecured business loans offer the perfect financing solution for your business needs.
While there are multiple ways to finance your business, unsecured business loans offer several unique ways to gain money quickly, with minimal risk to the borrower. Different types of these loans include business credit cards, term loans and lines of credit. If you are considering an unsecured loan through your lender, there are a few things you should keep in mind.
Here are a few things you should know about unsecured business loans:
- There Are Different Loan Types: As mentioned earlier, there are a few different types of unsecured business loans, from credit cards to lines of credit. If you are unsure which loan to choose, talk with a qualified lender about the benefits and features of each loan and which might be the best fit for your business.
- You Don’t Need Collateral: Unlike a secured business loan, unsecured business loans do not require collateral, such as equipment or property, for funding. This makes the loan less risky for the borrower while still allowing them to borrow large amounts of money.
- You Will Need Good Credit: Since unsecured loans do not require borrowers to put up collateral, the loan is more risky for lenders. Because of this, lenders typically need your personal or business credit score to be higher than if you were applying for a secured loan.
- Approval Time Can Be Fast: When you put up collateral for a loan, it needs to be appraised before acceptance, which can take time. Since you do not need collateral for unsecured loans, the application and approval process tends to be faster — allowing you to get your money faster.
For more information about affordable unsecured business loans from the experts at Total Equipment Financing, please contact us here or call us directly at 855.813.1818.
