There are several options out there when it comes to business loans. That is why it is important to do plenty of research when choosing a lender. If you are looking for a loan, you are probably in the middle of weighing up your options. Should I contact the bank about a traditional loan, or should I look for investment from an external source? If you are thinking about an unsecured loan, here are 3 reasons to go down this route.
- Availability – When it comes to finding a loan, especially for an SME, things can get complicated. Most traditional banks will not entertain SMEs as they think they are too much of a risk. While banks offer the lowest rates, loans can be extremely hard to come back. They tend to only lend to bigger companies, and they ask for a lot of information before anything is approved. Unless you have assets to offer, a traditional bank will not be interested. An unsecured business loan is easier to get from alternative lenders who specialise in the market. Although it can be challenging to get approval as a startup, small businesses that have been operating for 6 months generally have no issues.
- Easy to Apply – When you apply for a business loan from a high street bank, you know nothing is going to be straightforward. They will ask all kinds of questions and you will have to present a long list of documents in the hope of approval. Instead of going through this frustrating process, why not get in touch with an alternative lender and apply for funds with them? The great thing about using a non-bank lender is that they make it easy to apply. Everything can be done online and most of the time, applications are approved within hours.
- No Waiting Around – Another good reason to opt for an unsecured loan from a non-bank lender is speed. They can give you an answer in a matter of hours. In comparison, a traditional bank could take weeks to approve a loan. Getting immediate approval means you can steady your cash flow take advantage of an opportunity.
There you have it, 3 great reasons to work with a non-bank lender and apply for an unsecured loan. They make thing easier for SME’s as they specialise in that market, and they understand the difficulties small businesses face when trying to grow and handle their responsibilities.