Business expansion and debt often go hand in hand. When a company grows, the owner may hire staff, invest in stocks or move into a new building. In many cases, business owners seek help to fund these endeavors. Unsecured loans are one option; they’re different from secured loans in that they’re not backed by collateral. Business owners and borrowers can see here many of the benefits of unsecured business loans.
No Risk to the Owner’s Home or Assets
When a business owner applies for an unsecured loan, they don’t offer their personal assets as collateral. Borrowers get the reassurance that their homes and belongings are safe, no matter what happens to the business.
More Relaxed Requirements
An unsecured business loan is designed to be easier to get. Most lenders consider applications from those who’ve been in business for at least six months and have a yearly turnover of $50,000 or more. The business must be registered and owned in Australia, and the funds must be used exclusively for business purposes.
Quick Application and Speedy Approval
As finance technology advances, it increases the efficiency of related services. Business owners no longer have to make appointments, fill out stacks of papers and wait weeks for a lending decision. With today’s alternative lenders, an owner can finish an application within minutes using information from online banking and cloud accounting software. In many cases, the decision comes through in less than 24 hours.
A Firm Repayment Schedule
Alternative lenders continually work for greater transparency within the industry. Therefore, unsecured business loans come with clear repayment requirements and predetermined interest rates. This makes it easier for business owners to budget for and keep up with payments, as the amount won’t change throughout the loan term.
Unsecured loans are a customized finance solution that’s based on a business’ health and the owner’s ability to repay. Such loans are designed to encourage business expansion and development without putting a strain on the business or its assets. When a business owner considers the benefits listed here, among others, it’s easy to see why more are turning to unsecured loans as a funding source.