Unsecured Business Loans: Funding in 24 Hours
Unsecured Business Loans: Funding in 24 Hours
Unsecured business loans are a remedy for unforeseen circumstances. In fact, the funding may be your best recourse if you need money – literally – overnight. This is not something to utilize for every day needs; 24 hour approval should only be used in an emergency situation.
In a perfect world nothing would ever go wrong, but it’s nice to know that if property damage, technical malfunctions, or investment difficulty hit, there’s something you can do about it.
Business growth often requires some debt. This could mean expanding to new premises, hiring staff, investing in new stock or being able to better manage your cash flow. At some stage, Business owners at Dallas, Texas will seek funding from banks or alternative lenders in order to take their business to the next level.
It’s important to understand the distinctions between a secured loan and unsecured loan. Secured loan is backed by collateral such as property, and unsecured loan is not. Applying for an unsecured business loan will not require you to tie your personal property to the loan itself. However, you still need to meet income and credit requirements, and many alternative lenders ask for a personal guarantee from the directors of the business.
Six Advantages of Unsecured Loans
- No risk to your home
Applying for an unsecured business loan means you do not offer your family home or personal assets as collateral. You are safe in the knowledge that whatever happens in business, your family home won’t be at risk.
- Less stringent prerequisites
Unsecured business loans are designed to be easy to obtain. Most lenders will consider your application if you’ve been running a business for at least 6 months, with a minimum annual turnover.
Some Qualifying Prerequisites You Should Know for Availing Unsecured Loans
An online loan application is easy and can be completed in minutes. Simply file the basic details and business documentation and the funds will be accessible within 24 hours of approval. There are some qualifying prerequisites you should know about:
- Applicant must be in business between 6 months and 2 years in the United States.
- Applicant must be 18 years of age or older.
- Applicant must have a valid domestic bank account.
- Applicant must provide proof of repayment capability.
Application and documentation instructions are available through various lending websites. Even if you are in a hurry, be sure to read through everything before agreeing to the unsecured loan terms. Pay particular attention to any fees or interest rates you will be charged. Don’t sacrifice affordability for convenience.
- Fast application and approval
With the advancement of finance technology, or fintech, the speed and efficiency of financial services are being disrupted in a big way. No longer do business owners need to make appointments with their bank manager, fill out extensive paperwork and wait weeks for a decision. Alternative lenders allow you to apply online in minutes, connecting your cloud accounting software and online banking details to offer a responsible lending decision based on the health and growth potential of your business. It’s fast, paperless, and you can apply in your own time 24/7, 365 days a year. More often than not, you will receive a lending decision within 24 hours.
- No guesswork, transparent repayment schedule
Alternative lenders are continually pushing for transparency in the industry. This means your repayments (daily, weekly, fortnightly) are spelt out up front. The interest rate is determined upon approval, and your loan schedule will reflect a regular, even repayment. This means you know exactly what you need to repay in advance; the rate or amount will not vary for the duration of your loan.
- Credit history is not the be all end all
Again, the interest rate offered by an alternative lender is a reflection of risk the lender is taking. An unfavourable credit history is not necessarily an automatic ‘no’. It’s quite common for alternative lenders to offer loans to business owners that do not meet the bank’s requirements. What this means is, businesses with a strong credit history are offered a more competitive interest rate. Businesses with a tarnished credit history are still able to access the finance they need for growth.
- Focus on flexibility
Unsecured business loans are flexible in more ways than one. Not only do you have the power to choose the loan amount you desire for the time you need it, some lenders allow you to repay early without penalty. At TD Funding Solutions, you’re able to repay the principle amount owed on the loan after the minimum 3-month term. Each lender is different so you must do your due diligence to make sure this is an option for your business. Some lenders will only let you repay after the half way point of your loan, others will charge fees or penalties to break the loan agreement. Make sure you know where you stand on early repayments before signing the dotted line.
At TD Funding Solutions, we fully understand the business challenges faced by small businesses and have therefore designed the unsecured loan products in such a way that businesses can focus more on business growth rather than on worrying about getting business finance. Our customized plans ascertain that you get just the right product that suits your unique need.
To find out the product that best suits your business, click here (https://www.tdfundings.com/rapid-business-loans/).