Whether it’s for working capital, a new venture, or expansion, cash is essential for your business operations. Big ideas are great for growth, but unless you have the money to realise your vision, better-funded competitors will always be one step ahead of you.
There are different ways of getting your business needs financed, but potentially one of the easiest is via an unsecured business loan. Unsecured business loans don’t require collateral and get approved faster than secured loans or equity raisings. Below, we outline how to get an unsecured business loan (in 7 easy steps).
Step 1. Be clear on the purpose of the business loan.
What do you need the money for? Is it for buying equipment, acquiring new property, working capital, or upgrading software packages? There are good and bad reasons for getting small business loans. Make sure that you make the most out of any funding you get approved.
Step 2. Determine how much money you need.
Make a budget and have an estimate of the amount that you’ll need. Avoid underestimating because you might lack money sooner than expected. Overestimating, on the other hand, can make lenders question your credibility and assumptions.
Step 3. Know your turn over.
Lenders judge the reliability of borrowers through their cash flow over the medium term. An established, mostly consistent revenue stream into your bank account over recent months and years will give you a higher chance of loan approval.
Step 4. Find and compare lenders.
Find lenders that fit your business requirements and compare their terms and rates. (the eBroker loan matching tool
is excellent for this)
Step 5. Connect with lenders.
After having a list of potential lenders, you can connect with as many as you like and wait for their response (again, the eBroker online tool does this for you).
Step 6. Complete your application.
For most lenders, you can do this 100% online. Complete the requirements and submit your application.
Step 7. Get funding.
Sit back, relax, and wait for your funding!
Unsecured business loans are usually best for business owners who:
• Run small to medium size businesses
• Want to borrow less than $1 million
• don’t have substantial collateral to offer (or who don’t want to provide security).
Obtaining a secured loan can be a burdensome, long-winded process. You may wait for months, only to get a NO from the lender.
With an unsecured business loan, you can be granted approval and financing in as fast as seven days, without having to put your personal assets at risk.
So what are you waiting for? Follow these easy steps on how to get an unsecured business loan and get your business rolling!