Easy to Obtain
It shouldn’t be hard to attain an unsecured business loan. Most lenders will consider your application if the funds are to be solely used for business purposes. You also need to be operating in Australia and ensure your business is registered with ASIC.
Application Process is quick
The progression of technology has brought about the easy manner to be able to apply online in a matter of minutes. Lenders allow you to apply and upload all supporting financials and banking details online, allowing them to provide a responsible lending decision. It’s fast, paperless and you may apply in your own time throughout the day and receive a decision within 24 hours. It is no longer required that you need to make appointments and meet with bank managers and/or having to complete extensive paperwork and therefore eliminating long waiting times for a decision.
Stress-Free repayment schedule
The interest rate is determined upon approval, and your loan schedule should reflect a regular and even repayment. All should be made clear with whether your repayments will be daily, weekly or fortnightly. This means you know exactly what to repay in advance and all is transparent. The rate or amount should not vary for the duration of the loan.
With unsecured loans you are the one in charge and able to choose the loan amount you require and the loan term you desire, giving you great flexibility. Some lenders allow you to repay your loan early without being penalised. This way you’re able to repay the principal amount owed on the loan after the minimum 3 months term. Not all lenders are the same, so you must do your due diligence to make sure you are completely happy with what is on offer and best suits your business. Some lenders will only let you repay your loan after you have reached the halfway mark of your loan. Others will charge fees to exit your loan agreement. This is why you should ensure you have a thorough understanding and ensure you know what your loan terms are regarding early repayments before signing off on any correspondence.
Personal Assets are kept safe
Last but not least, by applying for an unsecured business loan it means you do not offer your family home or personal asset as security. You are, therefore, safeguarding your home and under no circumstances will your home be at risk.