Successful businesses run with a positive balance of working capital. But sometimes business owners need to reach out for additional funding to accomplish a given goal, like perhaps buying new and better equipment, buying advertisement to increase its products or services demand, investing on opening a new location or simply paying off debt. Generally, merchants tend to approach the traditional banking institutions, simply because they are unaware of different types of funding options that can help them to meet the much needed working capital. In many cases business owners find the right option when contacting the right unsecured business loans lender.
Most times, unsecured business loans are structured in a 6 to 12 months payback term, which should be enough to solve the short term financial problems of your business. These types of unsecured loans differ greatly from the traditional funding sources, as they require no personal collateral and you won't be personally liable for it. Besides, the application process is very simple and fast and your business can receive the much needed funding in as little as 7 days.
Because these types of unsecured loans don't require any type of warranty, they are more expensive than traditional funding options, and only apply to business owners who have been in business for at least 1 year and currently process credit cards as a form of payment . A few of its requirements are: that the merchant has no open bankruptcies, no tax liens, have at least 1 year remaining in its location lease and process at least $ 2,500 in credit cards sales monthly.
The sum that the unsecured loans lender can give your business depends on several factors like: the amount in dollars of your credit card transactions, your gross monthly sales (credit cards, cash, checks, etc.), the length of business ownership and sometimes the type of business you own. A great advantage of an unsecured loan is that there are no fixed monthly payments, basically you payback the lender as you sell your products or services to your customers that pay with credit cards.
Even though your credit history will be checked, it's not as important as other factor, it means that even if you have a less than perfect credit score you may still be able to get your loan, and this is something that traditional banks wouldn't do at all.
Another great benefit of getting an unsecured business loan (aka business cash advance), is that you are the only one who decides what to do with the funds, no questions asked. The lender will wire transfer the money into your bank account right after it verifies that everything is correct on your application, that you are using the credit card processor that has an agreement with that lender and that it has monitored one day of credit card transactions in your business.
All these make unsecured business loans, a great option for all small business owners, either because they don't want to risk their personal assets, they don't have a great credit history or simply because they need the funds as soon as possible.