If you are seeking a business loan to grow your company but you lack collateral that can be submitted as security then you may consider applying for an unsecured loan.
What is an unsecured business loan?
An unsecured business loans don’t require any asset or collateral to be kept as a mortgage in order for the loan to be sanctioned.
The benefits of an unsecured loan can be linked to many, but for some SMEs and new small companies, opting for an unsecured loan might be the only route to a sophisticated mode of funding. To apply for an unsecured loan, you no longer need to visit a local credit union or funding corporation and wait in long queues to submit the documents.
If you are too busy to physically approach any lender, you don’t have to worry. You can apply for an online business loan.
When it comes to unsecured business loans online, some people tend to be hesitative as there are multiple myths about the electronic process of borrowing. However, let us bust 7 Myths about getting anunsecured business loan online.
- Myth 1: Applying for a loan online is unsafe.
Truth:Applying for a loan online is as safe as applying for one physically. Your vital information is all kept confidential and safe with the lender.
- Myth 2: All kinds of loans require a collateral
Truth:You don’t have to submitcollateral to apply for an unsecured loan.
- Myth 3: An online loan may take ages to process.
Truth:An online unsecured loan may be disbursed in a matter of a few days provided all documents submitted by the borrower match the lender’s requirement
- Myth 4: A low credit score will disqualify you for an online loan.
Truth:Even if your credit score is average, furnishing other substantial documents to emphasize your payback potential can improve your chances of getting the loan sanctioned. The parameters, however, differ from one lending organization to the other.
- Myth 5: You would not be able to customize the loan terms if you are applying for one online.
Truth:After your loan application gets selected, you would be able to choose your payback option as per your convenience. A good CIBIL score may even help you lower your interest rates.
- Myth 6: It might be hard to reach out to my online lender to address my loan related grievances.
Truth: Just like any other conventional loan, you can easily contact the customer care unit of the lending company; most E-lending companies even have an option for you to connect with customer care representatives online who can solve your problems immediately.
- Myth 7: Repaying the loans applied online will not improve my credit score
Truth: An online loan is in equivalency with any loan taken through conventional routes. Paying back loans on time will definitely help you build a good credit score.
Now that all common myths around unsecured business loans have been busted, if you ever require business funding to enhance the operations of your business or to meet any of your business objectives don’t hesitate to avail for one.
You can research about online business loans available, check your eligibility and also apply for one instantly at your convenience.
In fact, the biggest advantage of applying for a business loan online is that it is transparent and you will know the progress of your loan application.