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Fast Loans, Quick Money & How Your Small Business Can Benefit from Unsecured Loans

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Whether they’ve just opened their doors or have been in business for years, all small business owners routinely grapple with cash shortages. Unfortunately, when cash reserves run low, it can be difficult—if not altogether impossible—to keep things running smoothly, as routine things like making payroll, settling suppliers’ invoices and paying utilities become exponentially trickier.

The good news is that there are a number of tricks and tools that owners can use to reclaim control over their cash flow. For example, they can make it a habit to pay all of their bills as quickly as possible in order to take advantage of payment discounts. They can also shop vendors to see whether they’re getting the best prices on their supplies. And if they’re really in a pinch and it’s been awhile, they can also consider raising their prices.

But even if a business owner has tried all of those tactics to no avail, he or she isn’t completely out of luck. From time to time, just like any other small business owner in any other industry, many are forced to look for outside sources of money to keep their doors open. When this happens, there are a number of options they can pursue, including:

  • Traditional bank loans. You might think that the easiest way to fund your small business would be to ask a local bank for a loan, but you’d be wrong. These days, banks are extremely cautious when it comes to lending money to small businesses. Beyond that, bank loans require mountains of paperwork—which means they also require a lot of time. It’s not uncommon for businesses owners to wait 60 days or even more to get financed when they choose this route.

  • Merchant cash advances. Instead of taking out a de facto loan, small business owners can opt to sell a portion of their future credit card receipts to a third party that offers merchant cash advances. But beware these lenders often tack on incredibly high interest rates and fees.

  • Accounts receivable factoring. If you have a lot of unpaid invoices piling up, you can sell them to a factoring company for a hefty fee. Like merchant cash advances, factoring generally requires business owners to forego a significant amount of revenue in exchange for cash.

  • Small Business Administration loans. Loans are also available through a federal government entity: the Small Business Administration (SBA). Like traditional bank loans, SBA loans are known for their exceptionally long application process. They too can take a long time to secure.

  • Outside investors. Small business owners can also decide to sell equity in their businesses in exchange for cash. In doing so, they lose some control of their company as well as a significant chunk of its profits.

Instead of leaving cash on the table or spending a lot of time trying to secure an old-fashioned loan, owners can also opt to apply for unsecured small business loans offered by alternative non-bank lenders. Unlike traditional loans that have never-ending application processes, owners can complete their unsecured loan applications in 15 minutes or less.

When small business owners figure out they need cash, they can’t exactly wait around for loan money to come in. Bills have to be paid on time, after all.

Remember, traditional banks and the SBA can take two months or even longer to deposit money in your account—assuming, of course, you’re approved for the loan in the first place.

Unsecured business loans work differently. Owners should hear back as to whether they’re approved within 24 hours—which means they can begin growing their businesses right away.

Worried that your company might not qualify for an unsecured small business loan? Assuming you’ve been open for at least a year and generate $100,000 in revenue annually, you will almost certainly be approved for an unsecured loan—even if you have bad credit. Alternative lenders are much more concerned with your business’ performance than your credit score.

Unlike other traditional loans that have to be used to cover specific expenses, unsecured business loans are much more versatile. You can use the funds to:

  • Hire additional staff

  • Buy new equipment

  • Remodel your current location

  • Move to a new location

  • Open a second location

  • Launch a marketing campaign

  • Absorb unbudgeted expenses

Don’t let cash shortages prevent you from taking your business to the next level. Apply for an unsecured small business loan and—within a couple of business days—you should have access to the money you need to better serve your customers and grow your company.

The small business loan process