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Bad Credit Tying You Down? Try Unsecured Business Loans

30 July 2018 No Comment

Credit scores are typically a calling card for business owners. While those with a healthy score find it relatively easy to obtain financing, getting the funds you need to start or expand a business can be an uphill battle if you have bad credit. Traditional lenders like banks are always looking to reduce risk, and the last thing they want is to lend money to a recipient that has a lousy history with debt.

On the bright side, having bad credit doesn’t mean its entirely impossible to raise capital for your business. Alternative lenders that consider applicants such as yourself exist and some of them will not even insist on checking your credit score. Moreover, although getting funded can be much more straightforward if you’re willing to stake your property as collateral, an unsecured loan provider will focus more on the strength of your business and the consistency of your income than tangible proof of commitment.

So, if your business needs a cash infusion but you have a low credit score, an unsecured loan from an alternative lender can be the best solution. Sure, you may have heard a lot about the risks of unsecured lending, but the good news is that you can avoid them all with the right planning and responsible spending.

Below are a few convincing reasons to try an unsecured business loan

  1. No Risk to Your Property

Unlike secured loans, unsecured funding won’t require you to insure the debt with your priced assets. A lender can’t seize any collateral if your business defaults. An unsecured loan can, therefore, be a great way to build back your credit score without having to worry about any potential loss of property. Additionally, a court will likely discharge your unsecured debt in the unfortunate eventuality that you file for bankruptcy.

  1. Relatively Loose Pre-Requisites

The process of acquiring an unsecured loan is typically much simpler than that of getting traditional funding. If your business has been operational for a significant period and your turnover is decent, you can cruise through the application process without the hurdles of proving your credit history or collateral ownership.

  1. Fast Approval

Thanks to the advancement of financial technology, you won’t need to make physical appointments, fill out extensive paperwork and wait for weeks to get a response on your loan application. Just visit a website like www.unsecuredfinanceaustralia.com.au, and you will be able to apply for an unsecured loan in minutes and get a quick response.

  1. Flexibility

Unsecured business loans are preferred by many because they’re typically flexible enough accommodate different preferences. Most alternative lenders will be willing to go over what you want and give you the plan that will suit your needs. For instance, if you reckon you’ll be able to pay back the loan sooner than the set term, you can ask for an interest waiver or reduction.

Of course, lenders are different, and you must do your research to make sure the options you want are available. Some providers will only let you repay your loan in full after a few months, while others will charge penalties to break the loan agreement. Nevertheless, a proper lender will consider your worth as a long-term client and give you the flexibility you want.

  1. High Interest for Bad Credit

An unsecured loan can be a great way to finance a business with poor credit, but you’ll have to contend with high-interest rates. If you can handle the cost, however, you can overcome the challenge of bad credit and get the funding your business needs. Although enterprises with a stable debt history get better interest rates, unsecured loan providers give entrepreneurs with low scores a chance to grow their business.


If your credit score has made it practically impossible to get a bank loan, it’s not the end of the road. Unsecured business loans are usually based on your ability to repay them, and not your history. Try one today and give your business the boost it needs to get to the next level.

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