Fuel Your Travel Business With An Unsecured Business Loan
Is your Travel Businesses will be seasonal in Nature?
Many Travel Businesses will be seasonal in nature, with sometime drastic swings in their sales. Most banks will consider such a business to be too high of a risk to lend to. There are certain non-bank alternative lenders that do see the value in businesses like this and have designed loan strategies around the nature of businesses with such seasonal swings.
Unsecured business loans are available for amounts ranging from $10,000 to $250,000 or more. The repayment period of the loan vary from 6 months to several years depending on the amount of loan a borrower wants and his or her credit history. Unsecured Business Loan is best suited for short term and cashflow needs.
Apply for an online unsecured business loan can save your time and money. You just need to complete small application form online and the lender will get back to you with the appropriate loan option.
A few advantages of getting an Unsecured Business Loan for your business are:
- Retention of the Ownership– An entrepreneur can retain the current ownership in his company instead of raising funds by selling interest in his company to an outsider.
- Cash Flow management- Unsecured business loan provides borrower an access to capital with minimal up-front payments and the flexibility to design a loan repayment schedule suitable to your finances.
- Tax Advantage- Interest on the loan is tax deductible. Thus, can help in saving hard earned money of the borrower.
Businesses with cyclical sales patterns will need to show the sales pattern over the last 2 years typically as the lender will need to see the fluctuations so they will know what to expect. Small Business Lending is all about offsetting risk and by knowing what to expect, the risk can be understood and planned for. For this reason, when you have a seasonal business, you will generally need to have at least 2 years of business history to demonstrate the businesses ability to repay the Small Business Loan.
You need to understand the fact that the lender is entitled only to the interest on its loan. You are not liable to pay any percentage of the profits or a share in the company that an investor would expect.
Unsecured business loans are designed specifically for businesspersons to finance their need for capital expansion of a business or assist with cashflow needs. The funds from an unsecured small business loan can be used for any business related purpose and can be paid back at any time prior to the agreement termination. Be aware, if you do pay it off early, you may be able to waive any prepayment clause if you are refinancing the loan into a new and larger loan with the finance company.
The best thing about an unsecured business loan is that it does not require a borrower to put a security against the loan. Thus, the borrower’s property is not under any risk of repossession. Because of the higher risk, you will need to expect to pay a higher interest rate than you would if the loan were secured by company or personal assets.
Below, you will find a video to give some more information on Secured and Unsecured Small Business Loans.
Interested in an Unsecured Small Business Loan for your company? My recommendation is to see IMMFinancial.com, they have many options for you.
Remember: A good credit history is always useful while applying for a loan. In case of an unsecured business loan, absence of collateral makes it necessary for a lender to identify the credit or recognize worthiness of the borrower to avoid any default by the borrower in the future. Higher the credit score, higher is the possibility of getting a fast and lower cost loan, so work on your credit score and you will see it doing wonders for you.