Unsecured Business Loans

Unsecured Business Loans

There are many people around the world who are interested in starting their own business for various reasons.  Most of the people are lacking in the funds that they need to get their business off the ground.

A great number of these people are under the impression that business loans are only given to those who have collateral.  Thankfully, this is not true.  Unsecured business loans are a great option for anyone who does not have collateral to offer a lender for the approval of a loan.

As you may have gathered from the name, unsecured business loans are designed for those people who want to start their own business venture, but do not have the cash they need and have no collateral to offer a bank or lender.  This means that the loan is risk free for the borrower.

In the UK, those who apply for an unsecured business loan have access to a loan amount of anywhere between five hundred to fifty thousand pounds.  Of course, there are requirements that must be met on the repayment capability, especially with the larger loans.

These loans will have a repayment period of six months to twenty years, depending on the lender and the amount of the loan.  However, there are some lenders that will not let you exceed a ten year repayment period due to the unsecured nature of the loan.

You will have to deal with higher interest rates because the loan is unsecured, but the payments can be more manageable even with high interest rates because of the lengthy amount of time you will have to pay back the loan.  Although, those with poor credit scores may experience even higher interest rates than normal.

If you are serious about an unsecured business loan, you will want to shop around and get free quotes from many lenders and financial institutions.  Because of the banking crisis, many independent lenders have become a better option for those who need unsecured business loans.

Many banks and larger financial institutions have become exceedingly strict with the approval of loans and if you do not have a perfect credit score, they may not want to do business with you.  Independent lenders, on the other hand, are more apt to approve those with less than perfect credit and will have better loan terms for the most part.