You wouldn’t be alone if you’re thinking about a getting a business loan for working capital and cash flow help for your business. With so many unsecured lenders and others marketing to businesses direct it’s really important to choose the right kind of loan.
Will an unsecured loan be right for me?
Unsecured loans are a great option for a business if there’s a short-term opportunity you want to take advantage of.
It’s important to remember that unsecured loans can be over short terms like 12 or 24 months. What this mean is repayments will be higher than loans offered over a longer term which could be a problem for cash flow after the initial impact or injection of capital.
What about if I have equity in my equipment and machinery?
If you have equity in your business assets you could also do a sale and leaseback against equipment and Machinery, which is a type of equipment finance. Think of it as similar to cashing out some equity in your home.
If you’ve got equity in the assets within your business, you can raise capital against those and for amounts under $150,000 you can often be approved same day.
Like traditional equipment Finance, you end up with a term that’s four or five years long. The repayments are stretched out over that period of time – meaning they’re much smaller and could be far easier for you to manage as you go through this difficult period.
Something to keep in mind.
Related Links
Case Study: Using Equipment Finance to Purchase a Business
Case Study: Move the cost of a fitout over 4 years
Equipment finance for older assets and equipment
How to use equipment finance for your business