With the restrictions around Australia easing across all states, businesses looking to cover costs and get back up again may choose to receive some assistance in the form of a loan. Usually, this loan comes in the form of a bank loan. If that does not work out, however, an unsecured business loan might be the way to go.
What is an Unsecured Business Loan?
Business loans are often taken for one of two reasons; to finance expansion or the purchase of an asset, or to improve cashflow and assist with the working capital of a business.
An unsecured business loan is one that does not require collateral in the form of an asset with equity – the loan is not secured. Because the loan is not taken against collateral, lenders will assess you based on your business’s history.
What can you do with a Business Loan?
The most exciting part of running a business is witnessing its growth. Expansion, however, can be a rather taxing, capital-intensive process.
If you’re looking to improve the workspace, hire new staff, or launch a marketing campaign, this may be for you.
If you need to quickly pay something off, taking an unsecured business loan might help cover a one-off cost without impacting the cashflow of your business.
You can also use the additional funds to purchase new equipment.
The benefits of going unsecured
One of the largest draws of unsecured business loans is the fact that with no collateral, you do not run the risk of a lender seizing your business assets if you default on a loan. It gives you flexibility to change or liquidate a loan as your needs demand.
Applications are also processed significantly faster than with bank loans and other secured loans.
On top of all this, if you happen to have a strong profit history or credit score, you can play this to your advantage when securing a loan.
Three simple stages of Business Financing with GoZoolu
Contact Us – Send us an application here and one of our lending managers will get back to you with a pre-approval, often within minutes.
Secure a loan – GoZoolu will compare over 200 lenders ready to lend anywhere between $5000 to $250,000, and find a competitive deal for you.
Get funded – Receive the funds and use them for your business as needed. You may also request for business loan advice if needed.