Unsecured Small Business Loans
Unsecured Small Business Loans: We’re going to take a look at some of the unsecured small business loan options are available for you. First of all cash advances are also known as merchant advances revenue lending. Cash flow financing is a great way to get fast and easy money from an unsecured source.
You can get approved if you’ve been in business for one year or more. Even if your FICO is as low as 500, and this is about the only type of unsecured financing. It doesn’t need good personal or business credit for approval. Now lenders will look at your 6 most recent months of bank statements to determine your approval. You should have revenue of about $120,00 a year more.
Which is about 10 grand a month of deposits and you need to have 10 or more deposits in every month. You should also manage your bank account. So you need to have a balance leftover on your bank account each month. You need to have few NSF charges also, if you meet this criterion you can usually be approved and get money in a short 72 hours.
The terms are short usually 3 to 6 months and then once. You prove yourself you usually get longer terms of even 6 to 18 months. This is one of the highest risk types of unsecured financing it’s out there because they accept bad credit.
So rates are high I mean rates on these programs can be15 to 45% we also see rates of 12%or less depending on the risk factors that are actually involved. Now another type of unsecured financing it’s very popular is known as unsecured business financing. So if UBF you can get about 3 to 5 times the amount, are 3 to 5 credit cards. That report only to the business credit reporting agencies. So not only will you get money but you’re also building your business credit which is also.
The lender can also get you low intro rates are on UBF. You’re usually getting 0% rates for 6 to 18 months, but you going to have good credit to qualify. Usually 700 plus type credit profiles we see people get approve down as low as 680. You can get up to $250,000 through business credit lines. Which are other unsecured options that are available but the key to approval for these is that you going to have solid financials. You going to have tax returns with good net profits and gross revenue now the other program.
I showed you the unsecured business financing where you’re getting 3 to 5 business credit cards instead of one credit line. That’s no doc, you don’t need tax returns you don’t need financials with this program you have to have financials. It is a full doc program you also need to have good credit for this like the other program.
We talked about 700 plus scores and approvals are based on your revenue or profit. Their different options some lenders will look at whatever your revenue is to determine your actual loan amount some will look at your actual profits. The rates are low about 7 to 10%but again this is a tougher program to qualify for because it is a full documentation program. So those are the 3 most common types of unsecured small business loans you’re starting your business.