Thinking about starting a new business? Have you had a long time dream of being your own boss and finally have a business plan in place? Are you lacking the financials and personal assets needed to start this business? If yes to any of these questions an unsecured start up business loan can help you achieve your goal of starting a new business.
What is an Unsecured Start Up Business Loan?
An unsecured start up business loan is a loan offered by a bank or other type of lending institution to a newly formed business to cover start up cost. An unsecured start up business loan does not require you to place personal or business assets as collateral on the loan. Lenders look for new business owners with high personal credit rating and clean credit and financial history because with no collateral on the loan the lender is taking a high risk. Interest rates for unsecured start up business loans can tend to be higher than a secured loan due to this risk as well.
Common Uses For Unsecured Start Up Business Loans
- Real estate purchases
- Equipment Purchases
- Inventory and other supplies
- Computer systems
- Other new busienss expenses
How To Get an Unsecured Start Up Business Loan
- Contact a lender to find out your unsecured start up business loan options
- Make sure you are able to meet the lenders requirements
- Submit an application along with your personal and financial history
- Negotiate the terms and conditions to the loan
- Sign the contract and set up a repayment schedule
You can get the money you need to cover start up costs today with an unsecured start up business loan. Just because you do not have the assets to place as collateral does not mean that you cant get the money you need to fulfill your dream of business ownership. With the right financial and credit history, and a strong business plan you can get the money you need through an unsecured start up business loan.
Chris Fuller went to the University of South Florida and has worked in the financial sector for over 20 years. He has extensive experience in all aspects of personal and small business lending, from personal loans, equipment finance to cash flow based solutions for small mom and pop businesses, and large corporations.