It is always the beginning of any new enterprise that is the most difficult and statistics tell us that any new business that opens this year, will very likely be closed down two years from now. This is the sad inevitability of going into business for yourself but your business doesn’t have to fall within these parameters. It is always difficult trying to keep your head above water in any new business because no matter what, you still have to come up with your rent when it is due to your landlord no matter how good or bad business is. Your landlord is not prepared to wait for their money and so if it isn’t forthcoming then you will be asked to vacate the premises and your new business venture will have come to an abrupt end.
Many new businesses find themselves in this familiar territory and so they are completely free to use an unsecured business loan for start-up to get them over the first few difficult hurdles. They can use this money to pay for rent or other incidentals that become due. This type of loan provides a lifeline for thousands of businesses all across the country every year and you can thank these lending institutions for providing this service to your favourite local store. For those currently starting out and running into cash difficulties, maybe the following benefits of taking out such a loan can help you to stay ahead of closure.
- No collateral upfront – Usually a lending institution will insist that you have some kind of collateral to back up the loan in the event that you are unable to pay. The downside of this is that you may be putting your home up for collateral and this is an intense amount of pressure to have on your shoulders as you try to pay the loan back on time. It distracts you from your business and your profits suffer as a direct result. Taking out an unsecured business loan removes this pressure and so allows you to concentrate more on increasing your customer base and thus increasing your profits.
- Everyone can apply – There are no restrictions on a loan such as this and so all applicants will be considered no matter what their status. This includes those of you who are renting their business properties and those of you who own the business properties as well. The procedure is incredibly easy and straightforward and in many cases, there is no additional paperwork required. Applications can take place online and you can get a quick decision in less than 24 hours. It is then entirely up to you what you do with your loan once it is deposited in your bank.
There is no doubt that your business will run into financial difficulties at the very beginning and it happens to the vast majority of new start-ups. It is crucial however that there are options for you in the form of a loan that doesn’t expect you to put up your home or other personal belongings as a means of collateral.