New businesses, small ones, and those trying to expand will need financial help at some point. Making payroll, clearing a balance with a supplier, or obtaining essential equipment can be difficult. Traditional lenders have a long application process, may require the past year or two of business statements, and have rigid criteria for approvals.
In the time it takes to apply, wait for approval, and possibly be denied expenditures are adding up quickly. If the owner can keep the business operations running smoothly for that length of time, a traditional loan is a smart choice. Interest rates are lower and payments can be spread out over two or three years, and sometimes longer.
When money is needed fast, alternative lenders are an option. They can also be a solution for businesses that may not qualify for bank or credit union loans. Short applications can be completed directly online with minimal documentation required. Approval rates are higher and money can be available within one to two business days.
Unsecured business loans can be taken out for a term of three to twelve months. The interest rate will be higher than that of a bank, but the process is easier and quicker. Owners will need to provide a valid picture identification, contact information, and the last three months of business bank statements. The last six months of statements are requested for loans over fifty-thousand dollars.
The company also offers an unsecured line of credit on a twelve-month revolving basis. This will improve cash flow and take care of any unexpected expenses as they arise. Money is readily available for any business purpose. Business owners can read this article to explore all unsecured possibilities. Minimum qualifications include being in business for at least six months and a turnover in excess of five-thousand dollars each month.
Unsecured equipment financing can be for a term of up to sixty months. Expanding the business does not have to be delayed until enough capital is saved for equipment purchase. Begin bidding on different contracts or accepting more jobs sooner with the proper equipment. Owners will want to compare loan payments with rental costs to determine which course of action will best suit business.