1:23 PM
In this blog we will discuss some of the point Steve makes.
Unsecured business loans have their positive and negatives. The positive is that this type of loan does not require any collateral, meaning you won’t have to risk your personal or business assets to secure the loan. But unsecured business loans may come with high costs and large payments.
Let's start with the positive, we agree with Steve on the points he makes about protecting your assets, fast access to cash and being able to obtain money without good credit.
"You won’t lose assets in bankruptcy...The biggest advantage of unsecured business loans is that they don’t require collateral, meaning you won’t have to put your home or another type of asset on the line to qualify for financing."
"Faster access to cash: No collateral equals...less paperwork and documentation."
"Small-business owners with poor personal credit but strong business revenue may be able to get approved."
Credit Pathway is able to provide several alternative funding options to clients based on either personal credit, business credit, business financials or even a credit partner.
At Credit Pathway, we strive to help businesses grow, not hinder them. We try to keep our clients away from high-interest, high payment loans whenever possible. We also work with clients that are already in those situations to establish a line of credit that will allow them to get out from under these types of loans.
The article talks about the high cost of loans, specifically on the APR or annual percentage rate. A line of credit with Credit Pathway has an APR of 0% for the first year and between 7.9% - 14.9% thereafter, making the rates fairly comparable to an SBA loan. The line of credit takes only a fraction of the time to process as opposed to an SBA.
Larger loan payments can be a detriment to small business, so Credit Pathway works with you to pay off higher-end term loans, merchant cash advances, etc with a line of credit. A line of credit will have a payment of approximately 2-3% a month on the amount used. So if you obtained a $50,000 line of credit, but only used $20,000, your first year monthly payments would be between $400-$600.
Smaller loan amounts are usually available to brand new businesses or individuals without much credit history. This is true, but many of our small business clients are husband and wife teams that obtain a line of credit for each of them, thereby doubling their amount. After a year of on-time payments and making sure that the line of credit is at a low percentage of use, that same couple will be able to easily obtain a larger business funding based on the positive history they have created.
Qualifying is not difficult. Simply visit our website and fill out our line of credit application.
We look forward to helping your business grow.
The original article can be found at:
http://www.huffingtonpost.com/nerdwallet/no-collateral-no-problem_b_9662314.html
