If you need access to small business capital to help your business grow and thrive, you have two basic options. You can attempt to acquire cash through a traditional lender, who will likely ask for some type of collateral to secure the loan and minimize overall risk. Or, you can find a lender who will provide an unsecured loan that does not require you, the business owner, to pledge your personal and business assets as collateral. The question comes down to – what condition is your credit in, and how much collateral do you have to secure the loan? While you may be able to net a slightly lower interest rate if you attempt to sign a secured loan, they are much harder to obtain than other options available today.
A secured loan places a lien on your business. Your physical assets or accounts receivable may be impacted, and most require a personal guarantee. The personal guarantee basically states that if the business is unable to repay the debt then the personal assets of the borrower may be forfeited to facilitate the repayment. For example, a secured loan with a personal guarantee can eventually require a borrower to sell his or her home to repay the loan, if the business is unable to meet the monthly payments. A secured loan can make sense if you fit the following profile: You have impeccable credit – both on the personal and business side. You have significant collateral to pledge, like a piece of commercial real estate or high-value machinery or equipment, and you are content with having to wait weeks or even months to obtain the funding you need today. Most borrowers don’t fit this mold, so secured loans are a challenge to qualify for and aren’t the right solution for the majority of applicants today.
An unsecured loan does not require the borrower to pledge assets. This means that qualifying for an unsecured loan may be more challenging than a secured loan, but only if you apply with a traditional lender who generally seeks some type of collateral before lending to a borrower. At Bad Credit Business Loans (BCBL), we specialize in providing necessary business funding through our merchant cash advance (MCA) program. This proven model enables you to receive upfront cash that is repaid through small daily payments. Instead of having to budget all month to make a large business loan payment, you’ll hardly notice the daily amounts and you won’t have to worry about accidentally missing a payment.
The repayment process is outstanding, but the real benefit to the MCA program is that you won’t have to wait weeks or months to secure the funding you need. Instead, you can apply today, receive an approval within 24 hours, and see the cash you need in a matter of days! It is the logical solution for small business owners who desire a quick and reliable method for accessing cash. Contact BCBL today to get started!