Unsecured Business Loans
As a business owner you may consider taking out an unsecured business loan for many reasons. It may be to allow you to make a long term investment in your business, or it could be to help you with cash flow. Either way, you should carefully consider the advantages and disadvantages of taking out an unsecured business loan.
If you are a business which holds few assets, you may have no means of providing security to the lender. Additionally, if your business has only been trading for a few months, your prospects of securing a guarantee or indemnity from third party may be slim. In this situation, you may wish to take an unsecured business loan as you will have few other funding options available to you.
Unsecured business loans will generally be offered at higher interest rates than secured business loans. As a business owner you should consider whether the interest rate is affordable to the business. The lender may require that the business or you pay a deposit before any money can be loaned, or if the loan is to acquire an asset the loan may be limited to only 70-90% of the value of the asset being acquired. The cash element required may be between 10-30% of the total value of the amount you need. This figure may not be affordable for you to pay if the business or you have few savings to tap into.
If you decide that an unsecured business loan is the right option for your business, you may wish to seek legal advice on the drafting of the loan agreement. Here at Francis Wilks & Jones we offer a tailored loan review service which can assist you in protecting your interests.
At Francis Wilks & Jones we can also put you in touch with trusted independent brokers who can help you to find the loan you are seeking.
Contact an expert banking and finance solicitor now
Please contact one of our friendly expert banking and finance solicitors now for your consultation on unsecured business loans. At Francis Wilks & Jones, we have a team of dedicated business loan experts ready to take your call and help you to understand your loan agreement. Whatever your question, we can help you. Don’t delay – contact the banking and finance experts now.