For small to mid-sized business owners with bad credit and little to no collateral, it was once virtually impossible to gain small business loans. And for business owners who needed to raise funds quickly, it was doubly difficult. Sure, you could go to that guy in your neighborhood who knows a guy, but if you care about your kneecaps, then there’s a better way.
In 2016 it’s now possible to apply for unsecured business loans and be approved in just 24 hours. Although interest rates, fees, time tables, and repayment periods vary widely, the best lenders can offer business owners funding within 24 hours to one week.
So if you’re an entrepreneur or business owner and you need to raise working capital loans for small business expenses, there’s finally a solution designed specifically for your needs. So just how much can you borrow? How fast do you need to repay these small business loans? What happens if you have bad credit? Do you need collateral?
Unsecured Business Loans: Timelines, Fees, and More
First, it’s important to note that not all lenders are created equally. You’ll want to identify a lender with a reputation for providing working capital loans to small businesses like you, not a broker or shady firm preying on startups.
In general, it’s now possible to get approved for working capital loans in one week to just 24 hours. But what about the repayment period for working capital business loans? You can also expect your repayment period to be sometime between eight months to a year.
What about the cost of the loan? Of course, that greatly depends on the amount of the loan and the particulars of your financial situation. How quickly you need the loan, the amount of the loan, your credit score, and other factors will all influence the total cost of the loan. Don’t be surprised if the price amounts to as much as 45% of the capital amount.
Finally, just how much money is available to you when approved for an unsecured business loan? While there are no guarantees, the loan size can range from as little as $25,000 to as much as $1 million or more.
Is An Unsecured Business Loan Right For Me?
If there’s one thing politicians on both sides of the aisle can still agree on, it’s that the deck is too often stacked against small business owners and entrepreneurs. While corporations have easy access to lines of credit, startups and small businesses have to find other ways to raise capital for life’s emergencies. However, be wary of any deal that sounds too good to be true, or a lender without an established reputation.
While unsecured business loans should never be entered into lightly, they can be a tremendously useful way to raise funds in a hurry.