Unsecured Business Loans vs.
Secured Business Loans:
Which one is better?
Need significant business funding to fund a new project or to fulfil a vital business goal? Choose between unsecured and secured financing. Wait! Do you know the difference?
are among the most applied forms of short-term business funding, where you do not need any commercial asset to pledge. Get funds instantly with no risk at all.
for businesses belong to long-term financing, which requires a business asset to be pledged as loan collateral. Borrow funds for a longer duration, too.
Unsecured business loans
bring the following BENEFITS for your company:
* Borrow up to £250,000 for a maximum of 5 years * You can save a lot of time by not arranging any asset to secure the loan
* Use the borrowed sum for any of your commercial purpose with no restriction * Get the benefit of competitive interest rates and flexible repayment terms
* Your loan request gets a quick response as the lender does not need to verify the collateral.
Secured business loans
also bring a lot of BENEFITS for every industry in the UK
* Get the maximum amount of up to £500,000 for 10-15 years * Your asset almost guarantees 100% loan acceptance for your business
* Lower interest rates? Yes, that is for sure with these loans * Longer term ensures fixed instalments and better to maintain regular cash flow
* You qualify for tax deductions on the interest rates on other loans like commercial mortgages
Ignoring the RISKS involved with
unsecured business loans
can be costly. Here are a few: * Higher interest rates may add extra burden on your business finance
* Lower amount is allowed only and may not suit the larger financial purpose * You need to arrange a personal guarantee as collateral is not there
Secured business loans
are not untouched by any RISKS. In fact, these also involve many disadvantages, such as: * Loan process will take time as lender has to verify the pledged asset
* You will lose your business asset once you default on the loan * During financial emergencies, these loans are not a suitable option.
Looking for a trustworthy UK broker to get the effective deals on secured business loans or unsecured loans for business? Thebusinessfunds is no doubt the right place for you
Compare among the selective lenders to get only the genuine loan deals. Contact us now and start applying for a loan of your choice. Thank you.