How to Get a Business Loan Without Collateral
Without hard work and determination, you cannot reach your goals. If one of your goals is obtaining a business loan without collateral, you are likely out of luck.
When it comes to getting fast business financing, you must act now, without delay. But if you are trying to get a business loan without collateral, your acts will be in vain. You must learn more about your other options to keep your business moving forward.
What Will a Bank Ask For?
Assets – this may include equipment and real estate. The amount must be at least equal or greater than the price of the business bank loan.
Personal guarantee – this is a promise that you as the owner assume responsibility for the debt in case of default. Although the loan is for your business, the bank will hold you personally liable for repayment. Therefore, they can come after your personal possessions as well as your business assets.
Blanket UCC lien – banks attach this to most loans for any small business. In short, it means that they can take any of your assets if you fail to repay the business capital loan. So beware when a bank does not ask for a specific piece of collateral. Read the fine print and understand what you are signing and that the bank will get its money no matter what. Even worse, when a lien is placed on your business, it becomes public record, letting everyone know your business is in trouble.
Is it Possible to Get a Business Loan without Collateral?
It would be ideal if you could get a small business loan without pledging assets to cover the cost. The truth is that business loans from a bank always require collateral.
Pledging collateral puts that asset at risk. If you have any difficulties repaying your express business loan, the bank can seize your asset.
They do this to minimize their own risk in granting you the fast company loan. This is because they care more about their shareholders and sales targets and less about helping small business owners.
A loan is typically ideal to finance long term business purchases. The only reason to get a business loan is if you are purchasing a piece of equipment that requires long term financing. Even then, the equipment will then become your collateral.
If You Can’t Get a Business Loan without Collateral, Then What
With a line of credit from Financing Solutions (www.financingsolutionsnow.com), you don’t have to pledge collateral. In fact, it doesn’t cost anything to get or set up. You pay nothing or until you use it. This makes it an excellent option for dealing with the ups and downs of business cash flow.
Most importantly, there is no long term commitment. You get your money in 48 hours or less after applying. Also, you can repay the money fast, in one lump sum if you choose, with no penalties. Then, the fast cash becomes available to use again and again.
A business line of credit from Financing Solutions is beneficial to any business. With it, you can make payroll, purchase supplies and handle emergencies. Every business owner should have one, just in case.