The Advantages of Unsecured Business Loans when Buying a Business
There are several advantages to applying for an unsecured small business loan rather than a secured business loan when purchasing a business. What exactly is an unsecured business loan?An unsecured business loan is an advance of funds that does not require that the borrower put up any collateral (their own property or assets) in order to assure that the loan will be repaid. Instead the small business loan is based mainly on the credit history of the applicant. Sometimes these loans are also known as 'signature loans' because the bank has nothing but your credit history and signature. Plus your personal assets cannot be repossessed, a great advantage to this kind of loan.
No Collateral
Unsecured small business loans are an ideal way to finance the purchase of a business for new entrepreneurs who do not have collateral to put up. Although interest rates may be slightly higher since there is more risk to the lender, the process is typically simple as long as your credit is decent and you can convince the lender that you have the stability to re-pay the loan.
Borrowing Criteria
How much money can you borrow and what does it cost to apply? Typically these loans range between $10,000 and $100,000, depending on various factors including such items as such as credit history, income, residence status, and previous unsecured credit limits. If you come across a small business loan opportunity that is asking for upfront application fees, steer away. Reputable firms typically do not charge upfront fees.
Simple and Quick Process
Applying and obtaining an unsecured business loan is usually a simple and quick process. For example, say you find a business that you would like to purchase you can usually fill out an online form or call a toll free number to go through a pre-qualification process. Typically within a few hours on a regular business day you can find out if you meet the pre-qualification criteria. If you do, the process continues until you are approved for your loan, usually taking anywhere between a few hours and a week depending on if a wire transfer is made or a check is mailed.
How to Apply
On the web you can find sites where you apply for unsecured business loans quickly and easily. Here at BusinessMart.com you can apply for a fast small business loan.
Interest Rates
Interest rates vary depending on your particular credit history and circumstances. And repayment terms typically range between 12 and 84 months.
Conclusion
Overall unsecured small business loans are a great option for those purchasing a business. If you are looking for a fast small business loan this is your best choice.
About the Author
BusinessMart.com has become the fastest growing business for sale search engine, helping buyers and sellers of small businesses and franchises. BusinessMart.com has many resources to help you on your journey to start your own business, sell your existing business or open a franchise. BusinessMart.com has thousands of businesses for sale in the US and Canada.
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