Unsecured Business Loans - YouTube

Secured and unsecured business financing that you can get right now for your

business

Secured financing is financing that is obtained using some form of collateral

the collateral serves as security for the debt, if the borrower defaults, the

lender can take the collateral that was used as security, The lender will then

typically sell the collateral at auction, or have professional in that area

handle the sale, the lender’s goal would be to unload the security quickly which

is why much collateral is given a fire sale value initially. Secured financing

examples on the consumer side might include a car loan, a home mortgage, a

signature loan, most common business collateral types include account

receivables, equipment, inventory, purchase orders, commercial real estate, auto floor

plan, insurance book of business, most common personal collateral that can be

used for business financing includes, stocks, bonds, and other securities, 401k

and IRAS, cash in hand, even residential real estate. Private money is

one type of secure financing to get approved you will need 2 years of

positive financials, you also must show positive sales growth, plus you will need

to have 20% collateral, rates are typically 8% or higher on this

type of business financing you can usually get approved for a working

capital credit line 650 score are typically needed to qualify. SBA loans

loans are also form of secured financing, to get approved you will need 2-3 years

of positive financials SBA loans completely full doc meaning

you will need a lot of supporting income documents you also much show positive

sales growth and you will need to have 50% collateral to get approved, rates on

SBA loans are typically 5-8 percent, 10 to 25 year loans or credit lines

are available

good credit required for approval

. Accounts receivables financing is a type of secured financing in which

outstanding receivables are used as collateral for business financing with

accounts receivable financing you can secure financing for up to 80%

of your receivables you can secure those funds within 24 hours after

initial approval the other 20% minus the lenders fee is released once

the actual invoice is paid, this type of secured financing is not alone instead

future receivables are being sold for a discount. With account receivables

financing you can be approved for between $5,000 and financing all the way

to $20 million dollars in financing 1.25-3% percent discount is a typical

rate you will pay a 4% fee is common with accounts receivable financing

receivables must come from another business or government agency not an

individual your business must be open for at least 1 year to qualify for

accounts receivable financing. With 401k financing a 401k or IRA can be used as

collateral for financing you can secure a 5 year loan or in some cases even a

line of credit you can get financing for up to 100% of the 401k value, the actual

percent you get approved for is based on the percent of the 401k that is

rollable. Rate with 401k financing are usually less than 5% there are no

penalties for the rollover of your 401k credits a non-factor with this type of

secured financing so you can be approved

even if you have challenged personal credit. Here is how 401k funding

process actually works

first a new corporations is formed a retirement plan is created for that new

corporation allowing for investment by you from your old 401k into the new

corporation funds are rolled over into the new plan from your old plan, the new

plan purchases stock in corporation and holds it, now the corporation is debt free

and cash rich. With securities based lines financing you are using stocks and bonds

as collateral for business

funding, most stocks and securities are accepted you can typically secure

between 70 to 90% financing against the value of your stocks based

on types of stocks or bonds you have rate as low as 2-5% with this

type of secured financing you can get a loan or a working capital line of credit

challenged personal credit acceptable so you can be approved

even if you have bad personal credit with equipment sale leaseback financing

equipment own free and clear is bought by the bank and leased back to you

the lender pays you for the equipment then gives you terms to lease the

equipment back from them you can be approved for as little financing is

$10,000 and as much as two million dollars loan terms typically range

between 12 to 48 months rates usually range from 5% to 21% to get approved you

will need a 650 or higher FICO score equipment being used as collateral must

be one piece of equipment worth a lot of money

think medical equipment like MRI machines think large presses and other heavy duty

equipment used in factories small pieces of equipment can't be lumped together

and used as collateral such as office printers inventory financing is where

you use your existing inventory as collateral for business financing loan

amounts range from $150,000 to $500,000 the minimum

inventory financing loan amount is $150,000 general loan-to-value is 50%

thus inventory value would have to be $300,000 plus to initially qualify no

lumps together inventory like office equipment can qualify think of a huge

factory with shelves of inventory think about a retail store that has their back

section filled with shelves of inventory these are perfect examples of industries

in which inventory financing can be used

rates are normally 2 percent monthly on the outstanding loan balance 520 credit

score or higher is required for approval

purchase order financing is where you obtained

financing to obtain the supplies you need to fulfill in order

letters of credit are issued to the supplier guaranteeing payment up to 95% of

a purchase order can be advanced 5% less fee is released once the actual invoice

is paid loan amounts typically range from $5,000 to $25,000 purchase order

financing typically offers interest rates of 1-4 percent there are no credit

score requirements to qualify purchase order financing cannot be for unfinished

goods unfinished goods are ones that have not completed the manufacturing

process

commercial real estate financing is a type of secured financing in which

commercial real estate is used for qualification loan amounts range from

$75,000 to $20,000,000 5 percent or higher interest rate is typical with

commercial real estate financing owner-occupied and investment properties

can qualify SBA 504 and conventional loans are available to finance

commercial real estate with commercial real estate financing you can be

approved for a loan to value of 55 to 65 percent 55 percent financing is

available for cash out refinancing sixty-five percent loan-to-value is

available for the purchase of a property business must have cash flow to make

payments to qualify 655 Co credit score is required for approval

the applicant must provide a personal guarantee to be approved with book of

business financing for insurance agents commissions from the book of business

service collateral program is for insurance agents exclusively State Farm

agents won't qualify most other agencies will you can borrow two to three times

the amount of annual renewal commissions book of business financing offers

long-term loans of three to 10 years 4-9 percent plus prime rates are typical 650

credit score plus is required for qualification along with references with

floorplan financing an auto vehicle floor plan is used as collateral

revolving lines of credit and loans are available when each piece of

collateral is sold by the dealer the loan advance against that piece of collateral

is repaid $25,000 to $250,000 loan amounts are typical for floorplan

financing nine to 11 percent interest rates are typical 600 FICO scores are

required for approval

strong references are also required loans under 250K

don't require financials financing above 250K k does require

business financials unsecured financing is financing that is not secured by any

kind of collateral nothing is pledged as collateral for the debt if the borrower

defaults the lender can pursue the borrower legally but they can't just

take back any specific collateral unsecured financing examples on the

consumer side might include credit cards there are two main types of unsecured

financing good personal credit financing will get you unsecured credit cards that

do require a personal guarantee from you for approval

good business credit financing will get you unsecured credit cards with no

personal guarantee required for approval with unsecured personal credit financing

approval amounts range from $10,000 to $150,000 no accounts report on your

personal credit most report to business credit reporting agencies excellent

personal credit with open revolving credit is required for approval low

inquiries usually two or less are also required for approval approval amounts

are usually equal to current limits on your existing credit cards

0 to 25% APR is the standard interest rate with 0% introductory rates

offers for the first 6 to 18 months with unsecured business credit financing

approval amounts from $10,000 to $50,000 these accounts report to the business

credit reporting agencies it will take 6 months to build your business credit

profile from scratch to get these types of accounts personal credit is not used

for pre-qualification on these accounts so you can get approved even with

severely challenged personal credit

approval amounts are usually equal to current limits on your existing

credit cards

0-25% APR is this standard interest rate with 0% introductory rates offers

for the first 6 to 18 months

revenue lending is one of the most popular current forms of unsecured

financing where you use your future revenue to qualify for financing you can

get approved

even with no collateral revenue lending provide short-term loans at six to

eighteen months

loan amounts are available up to $500,000 loan amount or equal to 8 to 12

percent of your annual revenue rates of 10 to 45 percent are common a 500 credit

score or higher is needed for approval

good bank statements are needed showing you manage your bank account responsibly

is required for approval

merchant advances are another popular form of unsecured financing merchants

loan amounts equal to one month's volume loan amount equal to one month's of

merchant processing volume rates of 10 to 45 percent are common a 500 credit score

or higher is needed for approval

good bank and merchant statements are needed showing you manage your bank

account responsibly and have little charge backs are required for approval

contact us today to learn more about secured and unsecured business financing

that you can get right now.