The growth and success of most businesses often requires access to additional funds. If your small business is in need of extra money, secured loans can be the key to overcoming challenges or taking advantage of available opportunities.
What are Secured Business Loans?
Secured loans are typically offered by financial institutions to business owners who require capital to start a new business, expand an existing one or pay for business-related expenses. This loan requires upfront collateral which reduces risk for the lender, allowing them provide a lower interest rate that can be paid back more easily by the borrower.
Benefits of Secured Vs. Unsecured Business Loans
While unsecured business loans – that is, business loans that do not require collateral – can be a great option for business owners who have limited assets and want to protect their personal or business property in the event that they default, when it comes to building credit, and establishing lasting relationships with lenders, they cannot compare to securing a secured business loan.
That’s why with a secured business loan, you’ll find that traditional lenders feel safer, interest rates are generally lower, and terms are generally more agreeable to the borrower’s business needs.
Utilizing a secured business loan is a great way to ensure a lower interest rate, a longer repayment period, and the opportunity to build credit and forge a relationship between business and credit provider. National Business Capital strives to understand each business’ unique history, present position and future needs to provide the best financial assistance possible. National Business Capital’s 90% approval rates, zero upfront fees and years of experience providing honest, professional financing advice is on your side.
Take advantage of expansion opportunities, amass seasonal inventory, and engage in lucrative marketing initiatives with secured small business loans.
What Companies Utilize Secured Small Business Loans?
All types of small businesses could benefit greatly from this type of loan, however, companies that have mutual funds, vehicles, inventory, equipment, accounts receivable, land, buildings or other property to put up as collateral will have significantly lower payments and significantly longer repayment periods as compared to unsecured, collateral-free loans.
If You’re Set on Unsecured Business Loans, a Word of Advice:
If an unsecured business loan is what you’re after, then the Business Financing Advisors at NBC suggest NOT going to a traditional lender by any means. Conventional methods of securing an unsecured business loan involve skittish bankers that don’t like the idea of providing capital with no leveraged assets. They will give you terms that are unruly, unpredictable, and generally awful in terms of accommodating to the financial needs of your company.
Instead, choose an alternative lender like NBC that understands that “unsecured” doesn’t have to be a scary word. In fact, unsecured business loans are oftentimes just as effective if not more so than secured loans.
Every business is different, and so no business should be penalized for being designed in a way that benefits from one type of loan over another. When it comes to unsecured vs. unsecured business loans, NBC doesn’t discriminate – we offer a vast variety of unsecured business loans with terms that always accommodate to the needs of our customers, because every business deserves an equal chance at success, and an equal level of respect, am I right?
How to Get Secured Business Loans
First, Ask Yourself These Questions:
- Consider what assets you feel comfortable leveraging. Would you rather leverage your personal assets, or your business’s?
- Would you rather leverage someone else’s assets as collateral? NBC has a ton of secured small business loans that let you do exactly that.
- What kind of repayment terms are you after? Fixed? Flexible? Weekly? Monthly? Cyclical payments?
- What are you going to use your funds for? A short-term improvement or fix? Grasping a huge opportunity for success? Overcoming a business challenge? Need a little working capital?
- How much do you need? It might sound like a simple/obvious question, but in reality it can be one of the most difficult to answer. A secured small business loan that offers too-little can leave you unable to fund your business goals. Too much can leave you repaying excess money that you don’t need for a long, long time. Take the time to think about this!
Now that you’ve got all your specifics ready to go, give our experts a call at (877) 482-3008 for advice on how to get started, or fill out our 1-page, 1 minute application to get the secured business loan of your dreams in as little as 24 hours!