By – John Lewis
Unsecured short-term business loans have been the solution being taken by many business owners nowadays. While we are still trapped in this time when banks are close to being useless when your business do not have a robust portfolio, alternatives such as unsecured short-term business loans have been a welcome sight. In response, business owners have embraced this new source of financing.
An Awesome Financing Alternative
Financing is always a part of running a business. Managing a business is much like pasturing a herd towards greener pasture. The comparisons starts because a business owner is constantly demanded to steer his or her business towards greener pastures, in this case a more successful future. During the journey, it is unavoidable for the herd to come across plains of desolation. In business, this pertains to times when the owner needs to find financing for buying new equipment, hiring talented people, remodeling, marketing or advertising, to patch a gap in the cash flow and many other. However, since we are still affected by the recession that has hit every economy I know, asking for credit isn’t as easy as it used to.
This is where unsecured short-term business loans comes into the limelight. Alternative lenders have identified this great hole in the economy and they are more than happy to present business owners with options.
From a business owner’s point of view, who wouldn’t grab this loan type when you are trying to make ends meet for your business? Consider that the decision a business owner is forced to make not only concerns him, but also those of his employees and their family. I personally like how easy it is to repay this type of loan. Some may be confused because upfront, you are greeted with a higher interest rate than loans you get from banks. However, if you actually do your due diligence, as any good business owner does, you should find out that you would actually save on the interest because you are allowed to pay the loan in a shorter time frame. Moreover, it doesn’t burden you with an additional bill for years to pay for something that you’ve already invested right after it was disbursed. I hate having another monthly duty to keep in mind.
Another thing that makes it wonderful is that to be approved, lenders wouldn’t ask for personal guarantees or collaterals. This makes it a perfect advice to give to friends who would also want to get that initial capital for a startup.
If you’re still not convinced that unsecured short term lenders are now the apple of the eyes of businesses especially small one, I’ll give you another two reason. First is their fast turnaround. I have seen lenders of this type of loans release funds 24 hours after the requirements have been submitted – sometimes even shorter. Second is that they usually don’t give much emphasis on how good your credit rating is. Unlike other lending institutions that can be stingy, these lenders usually would look at you as a clean slate.
John Lewis is marketing lead at Noblefunding.com.au. Noble Financial Group is a medium between lenders and borrowers. Noble Financial Group helps over thousands of Australians each year with our short term finance.