Unsecured Business Loans


Secured and unsecured business financing that you can get right now for your business Secured financing is financing that is obtained using some form of collateral the collateral serves as security for the debt, if the borrower defaults, the lender can take the collateral that was used as security, The lender will then typically sell the collateral at auction, or have professional in that area handle the sale, the lender’s goal would be to unload the security quickly which is why much collateral is given a fire sale value initially. Secured financing examples on the consumer side might include a car loan, a home mortgage, a signature loan, most common business collateral types include account receivables, equipment, inventory, purchase orders, commercial real estate, auto floor plan, insurance book of business, most common personal collateral that can be used for business financing includes, stocks, bonds, and other securities, 401k and IRAS, cash in hand, even residential real estate. Private money is one type of secure financing to get approved you will need 2 years of positive financials, you also must show positive sales growth, plus you will need to have 20% collateral, rates are typically 8% or higher on this type of business financing you can usually get approved for a working capital credit line 650 score are typically needed to qualify. SBA loans loans are also form of secured financing, to get approved you will need 2-3 years of positive financials SBA loans completely full doc meaning you will need a lot of supporting income documents you also much show positive sales growth and you will need to have 50% collateral to get approved, rates on SBA loans are typically 5-8 percent, 10 to 25 year loans or credit lines are available good credit required for approval . Accounts receivables financing is a type of secured financing in which outstanding receivables are used as collateral for business financing with accounts receivable financing you can secure financing for up to 80% of your receivables you can secure those funds within 24 hours after initial approval the other 20% minus the lenders fee is released once the actual invoice is paid, this type of secured financing is not alone instead future receivables are being sold for a discount. With account receivables financing you can be approved for between $5,000 and financing all the way to $20 million dollars in financing 1.25-3% percent discount is a typical rate you will pay a 4% fee is common with accounts receivable financing receivables must come from another business or government agency not an individual your business must be open for at least 1 year to qualify for accounts receivable financing. With 401k financing a 401k or IRA can be used as collateral for financing you can secure a 5 year loan or in some cases even a line of credit you can get financing for up to 100% of the 401k value, the actual percent you get approved for is based on the percent of the 401k that is rollable. Rate with 401k financing are usually less than 5% there are no penalties for the rollover of your 401k credits a non-factor with this type of secured financing so you can be approved even if you have challenged personal credit. Here is how 401k funding process actually works first a new corporations is formed a retirement plan is created for that new corporation allowing for investment by you from your old 401k into the new corporation funds are rolled over into the new plan from your old plan, the new plan purchases stock in corporation and holds it, now the corporation is debt free and cash rich. With securities based lines financing you are using stocks and bonds as collateral for business funding, most stocks and securities are accepted you can typically secure between 70 to 90% financing against the value of your stocks based on types of stocks or bonds you have rate as low as 2-5% with this type of secured financing you can get a loan or a working capital line of credit challenged personal credit acceptable so you can be approved even if you have bad personal credit
with equipment sale leaseback financing equipment own free and clear is bought
by the bank and leased back to you the lender pays you for the equipment
then gives you terms to lease the equipment back from them you can be
approved for as little financing is $10,000 and as much as two million
dollars loan terms typically range between 12 to 48 months rates usually
range from 5% to 21% to get approved you will need a 650 or higher FICO score
equipment being used as collateral must be one piece of equipment worth a lot of
money think medical equipment like MRI machines
think large presses and other heavy duty equipment used in factories small pieces
of equipment can’t be lumped together and used as collateral such as office
printers inventory financing is where you use your existing inventory as
collateral for business financing loan amounts range from $150,000 to $500,000 the minimum inventory financing loan amount is
$150,000 general loan-to-value is 50% thus inventory value would have to be
$300,000 plus to initially qualify no lumps together inventory like office
equipment can qualify think of a huge factory with shelves of inventory think
about a retail store that has their back section filled with shelves of inventory
these are perfect examples of industries in which inventory financing can be used rates are normally 2 percent monthly on
the outstanding loan balance 520 credit score or higher is required for approval purchase order financing is where you
obtained financing to obtain the supplies you
need to fulfill in order letters of credit are issued to the
supplier guaranteeing payment up to 95% of a purchase order can be advanced 5% less
fee is released once the actual invoice is paid loan amounts typically range
from $5,000 to $25,000 purchase order financing typically offers interest
rates of 1-4 percent there are no credit score requirements to qualify purchase
order financing cannot be for unfinished goods unfinished goods are ones that
have not completed the manufacturing process commercial real estate financing is a
type of secured financing in which commercial real estate is used for
qualification loan amounts range from $75,000 to $20,000,000 5 percent or
higher interest rate is typical with commercial real estate financing
owner-occupied and investment properties can qualify SBA 504 and conventional
loans are available to finance commercial real estate with commercial
real estate financing you can be approved for a loan to value of 55 to 65
percent 55 percent financing is available for cash out refinancing
sixty-five percent loan-to-value is available for the purchase of a property
business must have cash flow to make payments to qualify 655 Co credit score
is required for approval the applicant must provide a personal
guarantee to be approved with book of business financing for insurance agents
commissions from the book of business service collateral program is for
insurance agents exclusively State Farm agents won’t qualify most other agencies
will you can borrow two to three times the amount of annual renewal commissions
book of business financing offers long-term loans of three to 10 years 4-9
percent plus prime rates are typical 650 credit score plus is required for
qualification along with references with floorplan financing an auto vehicle
floor plan is used as collateral revolving lines of credit and loans are
available when each piece of collateral is sold by the dealer the loan
advance against that piece of collateral is repaid $25,000 to $250,000 loan
amounts are typical for floorplan financing nine to 11 percent interest
rates are typical 600 FICO scores are required for approval strong references are also required
loans under 250K don’t require financials financing above
250K k does require business financials unsecured financing
is financing that is not secured by any kind of collateral nothing is pledged as
collateral for the debt if the borrower defaults the lender can pursue the
borrower legally but they can’t just take back any specific collateral
unsecured financing examples on the consumer side might include credit cards
there are two main types of unsecured financing good personal credit financing
will get you unsecured credit cards that do require a personal guarantee from you
for approval good business credit financing will get
you unsecured credit cards with no personal guarantee required for approval
with unsecured personal credit financing approval amounts range from $10,000 to
$150,000 no accounts report on your personal credit most report to business
credit reporting agencies excellent personal credit with open revolving
credit is required for approval low inquiries usually two or less are also
required for approval approval amounts are usually equal to current limits on
your existing credit cards 0 to 25% APR is the standard
interest rate with 0% introductory rates offers for the first 6 to 18 months
with unsecured business credit financing approval amounts from $10,000 to $50,000
these accounts report to the business credit reporting agencies it will take
6 months to build your business credit profile from scratch to get these types
of accounts personal credit is not used for pre-qualification on these accounts
so you can get approved even with severely challenged personal credit approval amounts are usually equal
to current limits on your existing credit cards 0-25% APR is this standard interest
rate with 0% introductory rates offers for the first 6 to 18 months revenue lending is one of the most
popular current forms of unsecured financing where you use your future
revenue to qualify for financing you can get approved even with no collateral revenue lending
provide short-term loans at six to eighteen months loan amounts are available up to
$500,000 loan amount or equal to 8 to 12 percent of your annual revenue rates of
10 to 45 percent are common a 500 credit score or higher is needed for approval good bank statements are needed showing
you manage your bank account responsibly is required for approval merchant advances are another popular
form of unsecured financing merchants loan amounts equal to one month’s volume
loan amount equal to one month’s of merchant processing volume rates of 10 to
45 percent are common a 500 credit score or higher is needed for approval good bank and merchant statements are
needed showing you manage your bank account responsibly and have little
charge backs are required for approval contact us today to learn more about
secured and unsecured business financing that you can get right now.

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