Need Business Loans But Have Bad Credit? You Can Find a Line of Unsecured Credit
The number of mail solicitations offering a business a credit line -- unsecured -- have increased by 42 percent, according to a study conducted by market research group Mintel Comperemedia. Prior to -- and even in the early years of -- the recession, lenders were offering primarily secured loans to customers. But many small businesses have maxed out their secured loans and tapped the business equity to the point that an unsecured loan is the only way to go. Recognizing this fact, lenders are now prepared to offer your business a credit line that is unsecured to generate business for themselves.
Even if your business has extremely poor credit, you can still find a company that will offer the business a credit line of unsecured credit -- however, you should be prepared to pay a significant amount more in interest and fees than if the business credit was good.
To get the best rates, you may be able to work with a lender that currently provides you with secured loans or mortgages. Being a customer may help you to get a preferential rate on a business credit line. Unsecured loans are also offered by numerous UK companies that specialize in providing unsecured business loans to companies with less-than-stellar credit.
Obtain quotes from lenders to compare the costs of the loans. In this market -- as evidenced by the increase in offers of unsecured credit -- lenders are looking for business. You may be able to negotiate rates, or bring down the cost of a loan with your existing lender by providing price comparisons.
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