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If you are the owner of a small business, it is very likely that at some point, you have had to get some financial help in the form of either a loan or money from investors. It is a sad fact that most new start-up companies also fail in the first few years; therefore, ensuring there is a good level of cash to keep paying the salary, rent and bills are crucial. Some people are very damming about companies getting loans however this is sometimes required to get through tough times or even grow. Below are some reasons why business owners prefer unsecured loans.
- Ease of Acceptance
If you go onto the internet and type something like “business loans” there will be hundreds of pages of information where a large amount of this will be companies trying to promote their business and why you should consider using them. You will be spoilt for choice. There are different offers of startup business loans from Become that gives you the peace of mind that you will be able to apply easily and also will find out within minutes whether or not they will accept your application and offer you something. For a company to potentially accept your request for an unsecured loan, they will look at your credit history. If this is very strong and there are no defaults on your account, then they will see you as a lower risk and probably offer you a deal quite quickly. If however, you have a poor history, either they will reject your application, or they may provide you with an agreement with a more significant interest rate.
- Funds Availability
The application process is simple and so is the availability of the funds. If you are accepted for the loan, and all the documentation is in the right order, you will get the money quickly credited to your bank account. If your bank accepts faster payment service, then this could all be completed on the same day. As a result, if you need money very quickly for a particular reason, this is an excellent way to get accepted (pending a good credit history) and get the funds transferred to your bank very quickly.
- Credit Footprint
We are in a world where for you to actually get a good credit history, you need to have things like loans or credit cards that show you are using these and paying things back each month in line with whatever the agreement is. If you start defaulting on this and don’t pay on time this shows up as a negative and will affect your credit history. If you have loans and cards and never default on a payment, then this will also appear on your credit history report and show any potential lender that you are a minimum risk (depending on the value you are looking to have lent to you).
