Finance & Lending

 

02 20 2015

Business Loans that Require No Personal Assets as Collateral

02 20 2015

Obtain A Business Loan Without Putting Up Personal Assets

Borrowing working capital through traditional channels means clearing a number of hurdles. One of the largest often involves collateral.

Putting lenders at ease

Making money available to small business owners is a risk on the part of financial institutions, as there’s always the possibility the borrower may not be able to repay the loan sufficiently.

In order to gain more security, lenders typically require borrowers to put up assets as collateral. These assets could take the form of real estate, equipment, inventory or anything in between. Any loan where the borrower pledges some type of asset as security is known as a secured loan.

Sometimes business assets may not be enough to satisfy lenders, however. In these cases, small business owners may be required to put up assets of their own, such as their home.

In scenarios like these, the borrower faces the risk of losing their family home if they were to default on their loan. Fortunately, there are alternatives to secured loans that allow small business owners to obtain the funds they need without putting personal assets on the line.

Working with alternative lenders

Alternative lenders like National Funding can compete with big banks in the business loan market because instead of strict qualifying and repayment standards, they offer flexible alternative business loan options.

From working capital loans to merchant cash advances, alternative lenders provide solutions to save both time and money. They can then pass these savings on to the borrower.

For instance, a small business loan or merchant cash advance from National Funding can provide amounts of up to $250,000 with no collateral required. There are no hidden fees or upfront costs, and borrowers can receive approval and get their cash in as few as 24 hours.

This is just one reason why unsecured business loans from alternative lenders have significantly increased in popularity in recent years.

Featured


  • Section 179 tax deduction benefit

    How to Qualify for Section 179 Tax Benefits?

    Come tax season, it's important for Americans to know what they can or can't write off. Including the right deductions can greatly benefit you in the year to come, as it can increase your return or minimize the amount you owe. Small business owners must pay just as close attention to their business taxes and qualifying exemptions as… […]

  • Create a small business survey

    5 Steps To Creating An Effective Small Business Survey

    Being passionate about your business, sadly, isn't enough to keep it afloat. One in five businesses will fail in their first year, and only half last for 10 years. Two of the biggest mistakes entrepreneurs make is investing in the wrong idea and failing to market it to the right audience. In fact, 42 percent of… […]

  • How to incorporate a small business

    Incorporating A Small Business: Why, And How, To Do It

    Most small businesses begin as sole proprietorships. That means that you, the owner, are the business, and the business is you - in the eyes of the law, at least.There are a number of benefits to being a sole proprietorship, including the minimal legal expenses involved in forming one, no required corporate tax payments and… […]

  • How small businesses can retain customers

    Customer Retention Strategies for Small Businesses Success

    As a small business owner, you know it's much easier to work with existing customers than to bring in new ones. While a flow of fresh shoppers is always a good thing, the customers who learn about you and your store while returning time and time again are a very solid and useful base. Of… […]