Business loans can make all the difference in expanding your business and helping you stay in the game, but they can be bit complex to understand. The first step to figuring out what business loan you should be applying for is to decide between a secured or unsecured loan.
Secured Business Loans
Secured business loans are taken out against something that your business owns, giving your lender assurances that they’ll be able to recoup costs should you fail to make repayments. The collateral can be a variety of things, from property that your business owns to specialist equipment. In contrast, unsecured loans give you access to money without having to use collateral.
If you apply for a secured loan, lenders usually give you access to better lending rates as you pose less of a risk. However, being approved for a secured loan is often a long process and it’s not suitable for all types of business such as firms that have few valuable assets.
Unsecured Business Loans
It is a business loan which is not secured against the company, property, asset etc. If you are looking to borrow money without providing collateral, then an unsecured business loan could be the best option for you. Whereas a secured business loan offers money on the basis of a tangible asset such as a property, lenders will want to see other types of guarantee for an unsecured loan.
There are many reasons why a company may need an unsecured loan. For example, a start-up with a small online business that rents office space or works from home that wishes to invest in better technology, or a larger company looking to pay upfront rent and hire more staff. Perhaps the company is suddenly in higher demand and you need a cash injection to fulfil requirements.
This type of loan is usually easily and quickly approved. However, unsecured business loans are more expensive due to increased risk.
Call Viable Finance today to discuss the options available for your business loan needs. We will listen carefully to your needs and then find the best business loan options available to you so that you can make a confident, informed choice.