How a Unsecured Business Loan Can Increase Your Business Working Capital

Visit our site to get a free quote for Unsecure Business Loans
Visit our site to get a free quote for Unsecure Business Loans

Neebo Capital is your low cost bank alternative!
We offer Unsecured Business Loans $25,000 – $500,000 Across U.S. & Canada!

For most businesses, taking out a traditional loan from the bank is often the first thing they do when they need a quick infusion of cash into their business working capital. But many small businesses are starting to realize that getting the money this way is increasingly becoming more difficult. Banks are becoming more tight-fisted lately when it comes to approving loans and if you or your business have bad credit or you don’t have sufficient collateral, then you may be out of luck.

Luckily, you have another option, and that is to take out a Unsecured Business Loan. Technically, it’s not even a loan. You just get the money you need right at the onset of the agreement, and in return the lender gets a percentage of your sales until you pay back the cash advance and the premium. Among most lenders, this percentage is commonly pegged at 8%.

There are a number of ways in which a Unsecured Business Loan can be beneficial:

  1. Your application is much more likely to be approved. If your bank loan application was denied due to your low credit, you may be relieved to know that your credit in this case is irrelevant. What’s more important is the actual stability and performance of your business. Banks need to assess your business plans, tax returns, and your financial statements. But those who provide Unsecured Business Loans check only how long you’ve been in the business and how much you generate in monthly credit card sales. If you’ve been in business for at least 9 months, for example, and you generate at least $5000 in monthly credit card sales, you’re likely to get approved for a Unsecured Business Loan.
  2. The entire process is quick and easy. Banks can take time—weeks or even months—to process a loan. But you may need only a week to receive your Unsecured Business Loan. This can be a crucial difference, especially if your business is in dire need of additional business working capital.
  3. Your credit and collateral is protected. Unlike commercial loans, a Unsecured Business Loan won’t affect your credit rating. That’s because it’s technically not even a loan. It doesn’t get reported to the credit bureaus because it’s technically a sales transaction. You don’t even risk losing your collateral, because there’s no requirement for it.
  4. You only pay back the loan when you’re also paid by your customers. Loans in general require regular (as in monthly) payments in fixed amounts. But with Unsecured Business Loan, the rate of collection varies depending on how strong your credit card sales are for the month. This can be a boon for businesses in which the revenues are seasonal or wildly fluctuating, such as hotels.

So in the end, even if banks will not grant you a loan you need, there’s still hope. You can still save and even nurture your business by increasing your business working capital with a quick Unsecured Business Loan.  For more information about this service, check out www.neebocapital.com.

 

Published by

Chris Lanchech

Hi everyone, my name is Chris and I am a junior analyst at Neebo Capital and an inspiring blogger. We enjoy speaking with business owners and entrepreneurs who come to Neebo Capital looking for cash flow solutions. Give us a call toll free at 1-888-382-3766 or Visit us online at www.neebocapital.com

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