Many business owners sit around wishing their ventures would develop and grow into something bigger and better. Of course, there is no one simple answer to finding business success, but unsecured funding can help smaller companies to achieve massive growth when used correctly.
Unsecured funding is a phenomenon that continues to increase in popularity as more and more small business owners look for financial solutions after these past few trying years. The COVID-19 pandemic has brought with it some significant struggles across a vast number of industries around the world. Recovering from the damage that has been done is no easy task, but unsecured business loans have provided many with hope and a way out of trouble.
The Key Advantages That Will Help You To Grow
Unsecured finance has many positive points for you to take advantage of. It can help to steady your company when times get tough, seeing you through to your next good sales season. It can also save your company from the brink of closure and act as a form of a business turnaround if that is what you require it to do.
Get Money Fast
When compared to its secured counterparts, unsecured funding is far quicker and will award you with the cash you need at a much faster rate. This means that if your business is desperate for finance and the clock is ticking seriously quickly, the best way for you to go is down the unsecured business loan route.
The quicker you can get money, the quicker you can fix any problems that lie within your business venture. We firmly understand that business owners can get stuck in a rut and occasionally need a helping hand; unsecured funding can offer you the help you need at a seriously quick speed. You can receive funds within 24 hours of sending in your application, so if time runs out, you will still have an option available.
No Assets Needed
Another big advantage of unsecured funding is that you do not have to put any assets on the line. This means things that are important to you and your life, such as a house or a car that you drive to work every day, will never be at risk. There is a vastly reduced level of risk for the borrower when taking out unsecured funding, as no assets are in play.
This is partly why many modern-day entrepreneurs are having their heads turned by unsecured funding in the finance world. Less risk can only be a good thing for people, especially those who are already in a difficult position when it comes to money. If you are looking for a business loan without the risks of a traditional high street bank’s demands, look no further than a Merchant Cash Advance.
Smaller Amounts Of Money Are Available To You.
With unsecured funding methods, you can usually apply for a much smaller amount of cash than if you were utilizing secured finance. This allows business owners to cover slow sales periods without committing to long-term borrowing. If you run a seasonal business or are aware that certain times of the year are no good to you, this can be the perfect way to tide things over.
Being able to apply for a smaller amount of funding is something many business owners enjoy taking advantage of. This form of short-term lending is essential to those that need to cover a particular time or make a one-off payment for something that is going to help their business to succeed over the course of the near future.
What Should I Spend My Unsecured Loan On?
The beauty of an unsecured business loan is that it allows you to spend cash on whatever your business needs. As the business owner, you will oversee where the money goes and how it is used. If you think you need a change of premises, you can use it for that. If you believe hiring new staff would be the key to your success, you are able to make that decision. The possibilities are endless, and the choice is completely up to you.
No lender will be able to instruct you in any way, though a member of our expert team could advise you on how to use the money wisely if you feel this help would be useful to you. If your business has the opportunity to grow in a specific area, and you know what it’ll take to achieve that growth, then you can use the money to cover the cost of it.
To give you some inspiration, here is a quick list of the most common uses of unsecured business loans:
Hiring New Staff
Do you already have a team of employees you wish to add to? Or are you looking to hire your first member of staff? Whatever the case, if your business venture is in a position where it could use a few more hands-on decks, unsecured finance could be a great way to cover some of the costs as you begin to pay a heightened monthly wage bill.
Getting new workers in can help a business to grow and provide cover for extra jobs that will ultimately start bringing more cash to a venture. It can also help to shake things up and provide new inspiration for a business that has gone stale.
Moving To A New Location
If your business is beginning to outgrow its old office space or will function better in a city centre rather than in a small town, you are going to need some money for the move. Unsecured funding could help you to pay the rent on a new office that feels a bit more like home.
If relocation is what your company needs, you are going to need a fair bit of extra cash to cover the costs.
Buying New Equipment
You may need to buy, replace, or upgrade equipment that your business venture relies upon on a daily basis. For some organizations, technology and equipment is essential and keep things functioning correctly. This is something you likely cannot afford to miss out on, so allow an unsecured business loan to aid you in your pursuit of the latest tech.
Even if things are going fine, you may need to make the odd replacement or upgrade here and there to remain ahead of your closest competitors. If you are operating within a crowded business sector, you need to have access to the equipment that keeps you apart from everyone around you.
You Can Outsource Work.
Occasionally, small business ventures choose to outsource certain aspects of their firms in order to get things done faster and at a professional standard. If this sounds like something your business venture would find beneficial, it may be a wise decision to use your unsecured business loan to cover the cost of it.
Outsourcing can be a very effective way of achieving business growth and creating a stronger future for your company. If you have people performing work for you outside of your office, then you can focus on other necessary tasks while you are on the inside. This opens up more doors for your small business venture as it frees up time and effort, which can then be channeled elsewhere.
Every Business Needs Help At Some Point.
As you can tell from the examples listed above, business funding should not be something that attracts a stigma. There are many reasons why your business might need to seek unsecured finance. This form of funding is constantly increasing in popularity and will more than likely be common practice in all areas of the business world over the next couple of years.
Times have gotten tough recently due to the Coronavirus pandemic and the national lockdown, so many businesses need every penny they can get. By utilizing the best financial options available to you today, you are giving your venture a better chance of long-term success. The more doors you can open for your company, the bigger and better it can become over time.
Finder has recently reported that “Businesses all over the UK face financial instability daily, which often requires outside funding in the form of a business loan. We have looked into how the state of borrowing for these businesses differs between industries over the years as well as how it differs depending on the size of the business.”
It continues, “The value of all business loans has increased. Among large businesses in May 2019, the real estate, professional services, and support activities industry had the largest gross lending at almost £4 billion, of which it repaid three quarters (77%). Meanwhile, the smallest lending came from the education sector”.
Are There Any Negatives To Consider?
Organizations with weaker trading positions are less inclined to qualify, as the choice on whether to loan is made against signs that reimbursement will be conceivable. This choice is bound to be agreeable to the borrower if a dependable guarantor can be found, yet the guarantor’s very own resources are in danger and might be taken if the business that initially borrower can’t afford repayments.
Since collateral isn’t offered, interest rates are typically higher. An unsecured loan without a guarantor will include much higher financing costs, as the shortfall of assurance that the advance will be reimbursed if there should be an occurrence of default implies the borrower should additionally counterbalance the danger.
Less unsecured funding services are controlled by the Financial Conduct Authority (FCA), and those not directed by the FCA are not supervised by the Financial Ombudsman Service. This might mean less legal recourse is accessible on account of any form of dispute.
How To Apply For An Unsecured Business Loan
Visit our application page and provide information to apply online. This will ensure that you are an ideal lender. You’ll need to be ready to tell us the following:
- Business Name
- How long you’ve been in business
- Your average monthly card sales turnover
- The amount your garden centre is looking to raise
- Registered office address and company number
We will need a few personal details, so please be ready to tell us:
- Your title, along with your full name
- The person in the business that is seeking a loan
- his Email address and telephone number so that we can stay in further contact with him.
Read through our terms and conditions carefully, click ‘get a quick quote’. From there, your application will be processed and reviewed by a member of the business finance suppliers’ team, who will help you find the correct lender for your emergency business finance.
We will then be in your touch to confirm the conditions of your loan/finance agreement.
Once the application is complete, it will be sent off and approved by a lender. You can discuss the terms of the loan with them. These terms will include interest rates, as well as how much the borrower will repay every month. The loan is then provided to you on an agreed and transparent basis.
The Time Is Now
If you are witnessing opportunities bypass you and your business venture because they are a little out of your financial reach, you should think about seeking out unsecured funding. This could help you to achieve your short-term goals, making your longer-term aims more obtainable in the future.