If you have unmatched financial history along with good credit rating and require a business loan for starting a new business venture, expanding your business, paying off already existing debts, and to honor working capital requirements such as paying off workers wages or meeting raw material cost, unsecured business loans are a good option for you.
However, if your business doesn’t enjoy a good financial history and don’t enjoy a good credit rating too, consider taking a business cash advance rather than borrowing an unsecured business loan.
However, there are not many money lending companies that offer you funds without mortgaging any collaterals. Therefore, many businessmen just entering the business may find it difficult to with no or little financial history may find it difficult to attain this type of business loan. But there are a number of money lenders and online money borrowing sites where you can get an instant approval for such loans without waiting for a number of days. All you need to do is to fill a simple application form online and your requirement would be met. What’s more many companies even offer you flexible loan terms and repayment schedule and expert advice on unsecured business loan.
Also, there’s nothing to worry if you need to purchase machinery and equipment and don’t have the required funds to do it. You can get your equipment financed, where a financial institute or acceptance company can lend you funds for this purpose.
You need to fulfill certain prerequisites for financing equipment finance. Some of these are the financial health of your company should be sound. Also, you should be in the business continuously for 5 years or more. Your business should also be making profit for the last 3 years and it must also have a good track record.
Also, most of the companies don’t provide equipment finance for purchase of second hand machinery or equipment. Nor do they provide funds for in-house fabrication of any machinery or equipment. You also need to reimburse the cost of machinery or equipment that you purchased 90 days before the date of application for finance. Also, projects that are grass root projects are not covered under this plan.
The actual borrowing rate for such equipment financing depends on the credit worthiness of the borrower along with the amount of loan and term for which the funds are required. However, generally the equipment finance rate depends on the prime lending rate that changes from time to time.
18 May
