In times gone by, sourcing a business start-up loan was a challenge in itself, and unfortunately many business ideas never got off the drawing board, thanks to the complicated and lengthy loan application process. Traditionally, this type of loan is the least attractive from the lender’s perspective, and with no history to look at, a new enterprise is very much an unknown quantity, and as banks like to minimise the risk of default, the lender would be reluctant to enter into such an agreement, unless, of course, the applicant had assets to use as security for the loan.
Unsecured Business Start Up Loans
There are online lenders who focus on assisting new businesses, and they can facilitate an unsecured loan for the purpose of starting a business. The process is straightforward, and the applicant simply fills in a pre-approval form and clicks on the submit button and pre-approval usually comes through within a few minutes. Some established finance companies offer bad credit business loans with guaranteed approval, and with flexible repayment plans, the loan can be tailored to suit the business. Some might prefer a monthly repayment, while others would rather settle on a specified date with a one off repayment, and having flexibility allows you the freedom to tailor the repayments.
Modern methods eliminate the need for a face to face meeting, and you will not have to submit your business plan, or any documentation other than a few basic things. If, for example, the business doesn’t have an ABN, the application will still be considered, as with a bad credit history, and each application is judged on its merits. Perhaps the real benefit from using an online loan provider is the speed with which the loan is approved, and in most cases, the funds are transferred into the applicant’s account on the same day.
If, for example, a person who wished to take out a start-up loan might not have a very good credit score, and with no business accounts, as the business has yet to commence trading, it might be necessary to use a signatory. This is a form of guaranteeing the loan repayments, and this is usually adequate for the loan to be approved, and with the right loan provider, your business will soon become a reality.
Thinking Outside the Box
Online finance companies have broken the mould regarding the business loan protocol, and they are happy to finance all types of businesses, no matter how unusual they might be. There are lenders that specialise in providing unsecured business start-up loans, and with their support, new ventures have an opportunity that might not have been possible a few years ago. There are only a few simple questions, about the amount you wish to borrow and the purpose of the loan, and after some ID checks, the pre-approval usually arrives within minutes.
If you have a great business idea and will require some funding, an online search is the best place to start, and within a very short time, you can have the funds in your account and can make that dream a reality.