Compare Unsecured Loans Interest Rates with other Options
Unsecured Business Loans
There are circumstances, situations and purposes for which businesses require finance where security against the loan cannot be provided. For these purposes, broadly defined as ‘intangible purchases’, Unsecured Business Loans are available.
Unsecured Business Loans are often for short term requirements but can cover a range of purposes including but not limited to:-
- Training courses to upskill staff and better resource the business
- Buyout of business partner
- To cover temporary shortfall in cash flow
- Injection of capital for business growth
- Funding for marketing and other expenses where a physical asset is not being purchased
- Stock purchases
- Where the lender will not accept the asset being purchased as suitable security for the loan.
This is considered somewhat as a specialist loan in that each loan application needs to be considered, addressed and assessed on its individual merits. While there are basic guidelines and a standard format for Unsecured Business Loans, the interest rate and other terms and conditions may be negotiated and set based on the merits of the applicant.
Not all banks and lenders offer unsecured business loans. When seeking this type of loan, a business finance broker with exceptional negotiating skills, extensive knowledge of this type of loan and access to specialist lender that do offer this loan, may be of great benefit in securing a better outcome.
Unsecued Business Loan Features
- Considered a higher risk loan than a secured loan.
- Attract a higher interest rate than a comparable secured loan as no security is offered.
- In some cases, the lender may request a Personal Guarantee be provided by the business owner.
- Providing the lender with as thorough, detailed and comprehensive information and documentation about the business as possible is recommended to enhance the prospects.
- Long established businesses with solid trading history and prospects may be viewed as a lower risk than newly established businesses and as such, attract a lower interest rate.
- The stronger the business credit score the lower the interest rate usually offered.
- Loan terms from as little as 3 months.
- Some lenders will require loan reviews at scheduled times throughout the loan term.
- Interest rate may be fixed or variable.
- Fixed monthly loan repayments
Individual business lenders will establish their own terms and conditions and application guidelines for Unsecured Business Loans. Just because your bank rejected your request for an unsecured loan does not mean it is not possible to be offered a loan from another lender.
Our business lending company has connections with many lenders including those that do extend Unsecured Business Loans.