For any business whether in initial stage or in growth phase, capital is required to keep up the momentum, acquiring the right loan will facilitate in realizing your dream.
Generally there are two main types of business loans – secured or unsecured loans. Before you choose a loan make sure you have considered which type would suit best. Secured business loan requires you to pledge a security as collateral on the loan. This can be business property, land, materials (products or raw materials) or even machinery.
Secured business loan gives the lender a less risky agreement and therefore the interest rates are likely to be lower. You may also be able to apply for a cash advance on the loan. An unsecured loan means no collateral is required but you may need to pay a higher interest rate to reflect the higher risk for the lender. The unsecured business loan means you are not required to provide a security as collateral on the loan.
Unsecured business loans often have shorter tenures than secured loans and higher interest rates, so keep this in mind when you are deciding on the right loan. Perhaps this option is better for short-term cash needs for your company. The unsecured option may have some more flexible aspects too.
So, take your time and ask our experts for help!