Unsecured small business loan spotted in Pacific Northwest
There are some common misconceptions about obtaining an unsecured small business loan. Among them is the notion that the best place to obtain an unsecured small business loan is through the Small Business Administration (SBA). Many business owners believe business loans are only available for established, long-profitable businesses. Another mistake is the belief that business loans have to be secured.
Let’s clear away some of the clutter.
First of all, the SBA does very little direct lending; rather, they guarantee that approved traditional lenders will receive payment on business loans even if the borrower defaults. There are many benefits to taking advantage of SBA lending programs, but the application process is complicated and lengthy. And, it’s at the lenders’ discretion as to whether to demand collateral or provide the borrower with an unsecured small business loan.
Startup loans are generally available to businesses in their second or third years of business, and approval is based almost entirely on applicants’ personal credit and financial statements.
There is a nugget of truth in the idea that an unsecured small business loan is hard to find; they’re rare, but not extinct. Nearly all business loans are secured with equipment, inventory, real estate or other financial assets, but it is possible to obtain an unsecured small business loan.
The secret is in knowing where to look for one. America One Unsecured can help with that. Before you tie up your business assets, contact America One Unsecured, a loan-consulting firm in business since 1999.