How to get an Unsecured Business Loan
Wondering how to get an unsecured business loan? For small business owners, that extra cash boost can be the difference between a thriving business and one that is merely surviving. Having access to capital allows you to concentrate your efforts on improving the business and gives you the freedom and time to work on other important aspects of your business such as marketing strategies and employee satisfaction.
The first step to getting an unsecured loan is usually getting all the right paperwork together. The basics include of course, identification, bank statements for the past 3-6 months, and other documents that can verify your address. Perhaps the most important are the documents that refer to your income – because these point to the health of the business you’re running and will influence the lender’s decision with regards to the terms and rates they will lend to you.
If possible, try and pay off any outstanding debt. You want your lender to be confident that you are capable of paying back the money you borrow. Incurring multiple late penalty fees isn’t the greatest start to securing a loan although this isn’t necessarily a deal breaker. One of the biggest advantages of an unsecured loan is being able to get the cash you need for your business despite a very average credit history. Although the terms of your loan may vary according to your past credit history, borrowers are not completely cut off from the opportunity to obtain loans just because of a past slip up.
Before applying for a loan, you should consider speaking to the lenders so you can get an idea of the loan terms and repayment rates. Going over all the details will give you a better idea of what you’ve signed up for and will make planning ahead for your business easier.
From here, the filling out of the application form will be the easy part. If you’d like to find out how to get an unsecured business loan, contact Smart@Vance today.