The Reserve Bank has conducted additional outreach this year to hear a broad range of perspectives on small business finance. Many small businesses looking to grow still find it challenging to access finance, particularly without providing real estate as security. Lenders highlight that they are keen to lend to small businesses, but that unsecured finance involves more risk. This article considers these issues and outlines some initiatives market participants have suggested that could help to improve access to finance for small businesses. The loan amount of a secured business loan depends on the value of the collateral.
- This loan is available only as a fixed interest rate principal and interest loan for a 12, 24 or 36 month term with monthly repayments.
- The Aditya Birla Finance business loan is a unique offering, in that it is a business loan provided in India without security.
- In particular, comprehensive credit reporting and open banking are thought to have the potential to lower the cost of credit risk assessment for lenders and increase access to finance.
Available from a wide range of lenders, an unsecured loan doesn’t require property to secure the loan amount. If you have a good credit history, then obtaining an unsecured loan is relatively straightforward. Check the APR – or Annual Percentage Rate – as this also includes any fees included by the lender for the provision of the loan.
Offers Flexibility
We also provide a dedicated senior funding specialist to look after your application and the funding process. Unsecured loans are now freely available to UK businesses at competitive rates compared to the traditional, secured lending products offered by high street banks. The days of businesses having to provide collateral to gain access to financing are over. You can consider getting an unsecured business loan if you need additional business financing without having a specific purchase.
Universal Finance are the unsecured loan & finance specialists for the fastest settlements and offer the lowest interest rates available. No real estate security is required, and our facilities are completely “unsecured” for our unsecured financing loans. If you want a business loan without offering security, an unsecured business loan might be just what you’re looking for. Unsecured loans are a great funding option for businesses that don’t own many assets, businesses that would prefer not to offer security, or any company that’s growing fast and needs finance quickly.