Forget the hassle of borrowing from traditional lenders – if your business needs funds urgently, you could have up to $250,000 by this time tomorrow. Borrowing from a business loan broker can help provide an easy, flexible line of credit to cover expenses and improve cashflow, smoothing out the troughs of business management.
What are Small Business Loans?
Business lending is quickly expanding in the financial sector, with the current total addressable market approaching well over a trillion and a half in value. Small business loans now make up one of the most common ways to fund a business. These are taken through business loan brokers, with certified lenders who avail funds for lending. Similarly to most bank loans (and unlike equity loans), they must be repaid over time. The difference, however, is that small business loans often offer more flexible terms, and have a much higher risk tolerance.
How would a Small Business Loan benefit your business?
While borrowing from a business loan broker is an increasingly popular option available to business owners and entrepreneurs, as with any form of borrowing, it does come with its unique pros and cons.
Beginning with the advantages, we have convenience – aside from banks and financial institutions, there are a number of online lenders you can easily approach to apply for a small business loan.
You can often find an online lender with a much higher risk tolerance if the banks fail to provide a solution. Securing a loan takes a fraction of the hassle, and applications will be processed significantly faster.
With unsecured business loans, this goes one step further. Traditionally, a con of these loans is that they must be secured against collateral, but with an unsecured loan, your eligibility is assessed based on profit history, no collateral required.
Going unsecured also means your business assets are not at risk of being seized if anything prevents you from repaying on time.
This does make it a little harder for new business to get approved for a loan, so make sure to take advantage of your profit history if it happens to be strong.
Also note that some expenses and interest fees may be tax-deductible, which may be a factor in your decision.
How to proceed with a business loan broker from here
Now that you have some important information about the basics of small business loans, you might want to make an informed decision on whether this may be a suitable financing option for you.
If you decide to go for an unsecured business loan, consider trying us out. GoZoolu offers quick approval for small business loans up to $250,000 for 24 months. Simply send in a quick application and one of our specialised lending managers will get back to you with a pre-approval shortly.