Unsecured loans enable business quick access to funds, which could prove essential to some firms as we move into a period of political and economic uncertainty.
It’s difficult to talk about the commercial sector currently, without leading on the potential uncertainty of Brexit that lies just around the corner. This uncertainty will prove very problematic for some businesses and the ability to quickly access capital could prove a vital lifeline.
We already know of some businesses that have borrowed money to enable them to buy in extra stock ahead of Brexit to mitigate the risk of disruption and brokers will play an important role in the coming months in helping their clients to access the funds they need.
Unsecured business loans can provide a quick and easy source of funding, particularly in comparison to commercial mortgages and they can be used for a variety of reasons.
Unlike commercial mortgages funds can be available in days and many clients will use them for short-term requirements as they can provide a quick and easy solution to support cash injections for their business, funding growth, raising any shortfall for a deposit on a commercial purchase, or even providing the ability to 100% purchase on a multitude of commercial assets without having to provide a tangible form of security
This has become an attractive avenue for business owners as it can be achieved with minimal information, typically two years trading accounts and three months business bank statements will be enough to obtain an option for lending within 48 hrs. Clients can also receive the funds within two weeks of submitting an application.
The speed and convenience of the product does demand a greater premium, with rates on unsecured commercial finance typically higher than standard commercial mortgages. But, for many clients, unsecured lending can be a great way of raising funds quickly, negating additional costs of valuation and legal fees or quite simply piece of mind that a business asset has no direct charge registered against it and can’t be seized.
The ability to redeem an unsecured loan at any point throughout the agreed term penalty free provides a layer of flexibility and overall control is in the hands of the borrower. So, for clients who want access to fast and convenient funding, an unsecured loan could prove the most economical option.
If you work with clients who want to raise capital for their business and you want to discuss their options, ENQUIRE TODAY
FOR INTERMEDIARY USE ONLY AND NOT INTENDED FOR THE GENERAL PUBLIC