If you’re considering an unsecured business loan, our business funding experts at Nevada Corporate Headquarters can help you thoroughly understand this type of loan and determine if it’s the best fit for you. Sometimes it makes complete sense to leverage your future revenue to meet your current needs. In many other circumstances, a lower-interest loan is the smarter choice.
Having a complete understanding of unsecured business loans can help you make the best decisions for your business needs.
Learn more below, as we highlight important aspects of unsecured business loans.
Fast to obtain – There is less processing time on unsecured loans, which makes them faster to obtain; some shorter than a week.
Easier to obtain/No Collateral – Unsecured business loans are easier to obtain than secured business loans because your business doesn’t need to supply collateral.
No Risk to Personal Property- A lender can’t take any of your business’ property if it defaults on an unsecured business loan unless they obtain a court order.
Fewer restrictions on funds – There are usually fewer restrictions on how your business can utilize the borrowed money, which gives you more choices in how you spend the funds.
Build Relationship with lenders – When the loan is paid back, it shows the lenders that they can trust your business, which can lead to potentially lower interest rates and favorable terms in the future.
Higher Interest rates – Unsecured loans are riskier for lenders, they usually include higher interest rates than secured business loans.
Harder to qualify – If your business has a poor or nonexistent credit history, the lender may not approve your application.
There’s a lot to think about and understand when selecting the right option to fund your business, and that’s why we’re here. Call NCH at 800-508-1729 and speak with one of our business funding experts.