Does that title say “unsecured” working capital? Are there actually lenders out there who will supply that? If you’re a start-up company you probably haven’t considered going to the bank for a loan without having any collateral, but how do you think companies get started, particularly retail or direct sales? No one starts out in business with thousands of dollars in assets and a positive cash flow. You have to earn those things with hard work and time invested. So where does the money come from?

The first two item on your agenda before you even fill out that application is to create a business plan that shows what you have for assets, what your idea is, what your projections for the future of the company are and build your business credit rating. How exactly do you plan on marketing your new direct sales company and how much of a return do you project for an investment of x dollars? Be as specific as possible. Banks and working capital lenders want to know details, facts and figures and your corporate credit rating. 

If you’re seeking an unsecured business loan, the lender will have to make their decision based on risk. Your business credit rating will be taken into account and the solidity of your business plan will be evaluated. Similar companies in your industry will be looked at to determine the likelihood of your success. Banks and other financial institutions want to be assured they’ll get their money back before they give out any kind of financing for small business, particularly start-up business with no collateral.

If one lender says no, try another. If a lender says yes and offers high interest and a short term, try another. Take the offer and shop it around. When your business credit score is high this gives you a market advantage. There are online finance sites where you can fill out one application and have your loan request shopped around to hundreds of potential lenders. Some even present your request to private investors who are looking for new partnerships. There is always a source of funding out there, no matter what type of business you’re going into. Start your search with your local bank or credit union and expand it on to the internet. Wait for all responses and then select the one that provides you the interest rate and terms you need.<-->

Business Loans, General Unsecured working capital loans, business loans, small business loans