Unsecured Business Loans

 

If you’re running a small business, need access to cash but don’t have any assets to offer up as security, an unsecured business loan could be your best option. With a secured loan, you’d have to place your car, house, or any other property you might have as collateral in the deal. Fail to make the loan repayments successfully and you’re assets will be taken from you and sold to settle the outstanding amount owed.

Unsecured business loans in Australia are great for business owners who don’t own any assets that are of significant value, don’t like the idea of offering up security, or need the money urgently. Here are some of the most important benefits of unsecured business finance in more detail:

 

Payout is usually much faster

Secured loans are very complicated affairs, so naturally there are way more legal details to sort out – this makes them lengthy to process. Unsecured loans in contrast, are far more simple. The main thing the loan provider will want to check is that the borrower can afford the loan comfortably. In most cases, short-term unsecured small business loans can be paid out within 24 hours.

This speed and efficiency makes this type of loan very practical for loan applicants that need the money for urgent situations. When your business is low on cash flow, stock, or needs to pay for a new purchase immediately, timing can be crucial. Where secured loans and credit card applications might take too long, unsecured finance will get you the funds much faster.

 

No assessment of your credit rating

When you apply for a standard loan, you’re credit history will be assessed thoroughly. If you don’t have the necessary credit rating, you’re application will likely be rejected. In some cases this rejection can set your credit score back even further.

With unsecured finance from Cigno Business Solutions, your credit rating isn’t part of the assessment. This is one of the factors that makes this option so attractive to business owners with poor credit history. A lot of people seeking unsecured business loans for new business won’t have stellar credit. Where bank lenders would turn you away because you’re seen as too much of a risk, unsecured options are still open to you.

 

Flexible repayment terms

Most secured loans can have loan terms that span over several years. Unsecured finance usually comes with shorter term periods of less than 12 months. It really comes down to your individual circumstances and the length of term that would suit your situation best.

 

Convenient applications

Most secured loans are a chore to apply for. There are far more stages involved including the arduous process of having your assets properly evaluated to allocate a fair market value. On top of this, they’ll likely want to take a look at your business plan to see if your intentions sound viable. With unsecured finance, you bypass all of these complications. Most companies will offer online applications through their website which means you can apply 24/7.

You can select the exact loan amount you need which means you can have perfect control over your costs. Once you’ve applied, you’ll receive an offer that clearly details your interest rate as well as all terms and conditions.   

 

Less risk to your property

Unsecured business loans don’t require any collateral. This is perfect for business owners who want to minimise risk or don’t yet own any assets that hold any substantial value. More and more start up companies today are launching without the need for tangible assets. If you run a software firm for example, you might have a few members of staff, a couple of computers and office space that you occupy on a lease. When you don’t have anything to offer up as security but require access to funds, unsecured new business loans become a really attractive source of finance.

Without the security of collateral, business lenders need to lower their risk or up their gains in some way. They do this mainly by holding certain criteria that borrowers have to meet in order to quality for the loan. At Cigno Business Solutions, we can only lend to businesses that have been operating for more than 6 months and generate over $5000 in revenue each month.

If you don’t mind putting up your tangible assets to achieve a longer loan term and can afford to wait, then a secured loan might be appropriate for your situation. If you prefer the idea of keeping your assets safe, having a much faster payout and negating a credit check, then an unsecured business loan in Australia could be your best choice for fast funding.