Looking for a flexible way to inject some working capital into your company? Consider an unsecured small business loan. Here are four key benefits you can take advantage of with this type of business financing.
1. No Collateral Required
Unlike a secured small business loan, an unsecured loan doesn’t require any type of collateral. That means you don’t have to risk any of your business assets or personal savings throughout the loan term. An unsecured business loan can even be discharged in the event of a bankruptcy. If you want to remove risk from the loan process, particularly if it involves using your personal assets as collateral, then an unsecured loan can be an ideal solution.
2. Provides Working Capital to Help Your Business
An unsecured small business loan provides more flexibility with what you can use the money for when compared to many other financing options. It can offer working capital for things like getting equipment upgrades, covering costs during slow seasons, or expanding your business. As long as you have a solid strategy for repayment, the extra loan funds can help your business no matter what stage you’re in.
3. Faster Application Process and Funding Time.
Since there’s no collateral to deal with as part of the loan transaction, most lenders are able to process unsecured lenders more quickly than secured loans. CMS Funding, for instance, offers a quick and easy approval process and funding within 24 hours. Compared to traditional banks, online lenders are much better suited to provide unsecured small business loans that fit your individual needs and timeline.
4. More Flexible Loan Amounts
When you get a secured loan using collateral, the loan amount typically needs to match the value of whatever asset you’re using to back the loan. That can be extremely limiting, especially if you don’t have equipment or property that your business owns. An unsecured loan, however, looks at a number of factors throughout the application process, which all contribute to your company’s ability to repay the loan. Consequently, you could end up being able to borrow much more than if you had to solely rely on the worth of your business assets.
When considering your company’s next steps for obtaining extra working capital, think about an unsecured small business loan. The benefits could make it the right choice.