Whether it’s the glacial pace at which the bigger banks evaluate your loan application or the need to provide your family home as security, small business owners are turning to alternative lending options for a fast, simple solution.
Unappealing options abound
Unsecured business loans are a genuine alternative for small business. Borrowing from family and friends comes with the inherent risk of damaging personal relationships. Crowd-sourcing doesn't suit every type of business and can be an administrative nightmare. Using your credit card means paying high interest rates and not always being able to access sufficient funds. Drawing on the security of an asset like the family home is often not an option, especially for younger business owners without a family home or unwilling to risk the house.
There is another option
Unsecured business loans offer just that – an unsecured business loan of between $5 and $250,000 to help small businesses grow. Accessing a smart proprietary lending platform, we evaluate the strength of your business to determine creditworthiness, not your personal credit score. You can apply online in a few minutes, and have the funds in your bank account within 24 hours. Common uses include bridging receivables gaps, purchasing inventory, building a new website, hiring more staff, renovating or expanding premises, purchasing equipment or paying ATO tax portal debt (some parameters apply).
How does an unsecured small business loan work?
An unsecured small business loan usually works on a fixed term of between three and 12 months and suits businesses with regular income. No security is required, but you do need income of more than $5,000 per month and six to 12 months of trading history. For loans under $50,000 you only need a photo ID and three months of bank statements. For loans over $50,000 you would also need to provide current account receivables, payables and other basic financials.
Unsecured small business loans don’t use annual interest rates because the loan terms are usually less than 12 months. Instead, a factor rate is applied depending on credit quality and term.
Don’t stay frustrated or use a less-than-perfect option – unsecured business loans can help you grow your small business.