Could An Unsecured Loan Grow Your Business?Sam Sandhu
If your business is looking for fast cash, then an unsecured business loan is typically quicker to acquire than a secured business loan. For fast-growing businesses, having a high-value asset for banks to take charge over may be hard to find, meaning a secured loan is not a feasible option. However, with its speed, convenience and availability thanks to the alternative finance market, an unsecured business loan may tick all the necessary boxes.
What is an unsecured business loan?
Instead of using assets as security for a loan, an unsecured loan will usually need a personal guarantee. A personal guarantee works as a promise that if the business fails to pay the loan, the business owner or executive will guarantee the payment. However, this guarantee will not be tied to a specific item of value.
As there is no security for the loan, lenders will inevitably levy the risk by having higher interest rates. This means that while these loans may be faster to get hold of, with less admin required in the process, they tend to be a more expensive option. However, a little extra expense could be invaluable to your business in the long run.
How can an unsecured loan grow your business?
Cash Injection For Boosted Growth
Mainstream lenders do offer unsecured loans. However, these will usually have a small limit, typically below £50,000. For pioneering companies, who want to inject big into their business, an unsecured loan of this amount will not suffice. However, with the rising alternative finance market, it is possible for businesses to find unsecured loans stretching into the quarter of a million pound bracket, if not more.
Access to large amounts of funds is undoubtedly helpful to businesses that can substantially boost their growth with a significant cash injection.
One of the benefits of unsecured loans is the fact they are quick to access, making businesses much more agile. When an opportunity arises, companies can act fast, securing the investment almost instantly so they can pursue every opportunity. With its fast-thinking approach, unsecured loans mean you can achieve the finance you need before the project takes off.
Range Of Uses
With the personal guarantee for the loan, lenders may not need to know where the money is going. However, an unsecured business loan can help to boost growth in almost every aspect. From expanding premises, acquiring additional stock, growing your pool of talent to making sure you’re available to pursue every growth opportunity, an unsecured loan can support you with all aspects of growth.
Capitalise On Business Growth
For high-growth firms without many assets, an unsecured business loan could be the ideal lifeline you need. To find the right funding for your business, Funding Bay are ready to help you access an extensive range of alternative finance products. If you’re looking for an unsecured loan to secure the future of your business, get in touch with Funding Bay for professional, no-nonsense guidance.