Business owners generally need a lot of financing during the early stages. As your business grows, you will need to inject more and more funds in order to ensure steady growth. A lack of funding could cause serious problems for your business. Not only can it limit the growth of your business, but it could also have a serious impact on your customers’ goodwill. In fact, many businesses fail because they are unable to secure proper financing.
Most small businesses generally need funds for one reason: to facilitate customer orders. If your business has just received a massive order, how will you be able to facilitate it if you don’t have the funds to buy raw materials? One of the best options available to business owners is to take advantage of an unsecured business loan.
What Are Unsecured Loans?
Unsecured business loans are generally designed to allow small business owners across Australia to get quick access to funds without having to worry about putting their belongings up as collateral. If you apply for a loan from a bank or any credit institution, you will first have to file an application. It will take at least a couple of weeks for the application to be processed, after which you will receive a reply from the institution about whether your application was accepted or not. If your application is accepted, it will take a further few days for the financial institution to sort out the paperwork and finally transfer the amount to your bank account.
A lot of time will be lost during this process. In this competitive economy, small businesses can’t afford to not make deadlines, which will deter customers from ordering again. Rather than waiting for approval from a credit institution, a great option is to apply for an unsecured loan.
Why Sign Up for an Unsecured Loan?
There are many reasons why unsecured loans are a great option. The loan amount varies between $1,000 and $250,000. This is a highly flexible figure for most business owners, allowing you to meet the requirements of your clients and fill orders. The loan term is generally under 12 months, thus making it easy for you to repay the loan within a year without having to worry about the exorbitant rates of interest.
The criteria for application are also quite relaxed. If your business has a turnover of more than $6,000 on a monthly basis and if you have a relatively good credit score, you will be eligible for application. These loans are generally suitable for the following types of businesses:
- Service providers
- Cafes and restaurants
- Retail stores
- Similar industries
The interest rates are also quite affordable, starting from as little as 1.90% per month. Getting an unsecured business loan is a fantastic opportunity for business owners who want a quick injection of funds without having to go through the slow application process.