GROW YOUR BUSINESS IN 2024 WITH A SECURED BUSINESS

One of the best ways to start the new year strong is to apply for a secured business loan. Unlike other forms of business financing, secured business loans are guaranteed to offer you the lowest interest rates with increased credit limits and flexible repayment schedules.

Depending on your business goals, a secured business loan can be the best way to invest in your business in 2024.

The main difference between a secured and unsecured loan is the added condition of asset-based collateral. Collateral acts as an insurance policy for lenders to protect themselves in case loan payments go unpaid.

For the borrower, collateral can be an advantageous tool towards acquiring an affordable loan. Collateral can also enable business owners to borrow more money. However, if a business fails to pay back the loan, the lender can seize their assets in return, leaving business owners in an increasingly vulnerable position.

So, if you are in the market for a business loan, make sure that you can afford to repay the loan before signing any documents.

• Real Estate Asset (residential or commercial property)
• Savings Account
• Investments
• Inventory
• Equipment (machinery, vehicles, technology)

Be sure to inquire with the lending institution of your desired loan for more specific information.
The other important component of your application will be your personal or business credit score. Due to the secured nature of this business loan, the minimum credit score requirement may be as low as 660.

There are a range of business loans available depending on your needs, qualifications and timeline. Generally, it can take anywhere from a few days to a few weeks to receive funding. However, there are ways to get business funding fast. In addition to a business cash advance, or a payday loan, there are term loans, equipment financing loans, lines of credit and invoice factoring loans that can issue money within days.

A business equipment loan is almost always considered a secured loan. This is because the equipment that is purchased is used as collateral for the loan. There are numerous advantages of a secured business equipment loan including more flexible repayment terms and lower interest rates. Business equipment loans can also be issued relatively quickly.

However, there are several potential risks and downsides to obtaining a business equipment loan. First and foremost, the lender may seize the equipment you purchased if you default on the loan. Secondly, a business equipment loan may require a personal guarantee in addition to the collateral and a large down payment of over 20%, which may not be feasible for every business.

But if your business plans to expand production this year, a business equipment loan can be an excellent opportunity for growth.

Traditional lenders like a bank, the SBA or a credit union will not issue you a business loan without a thorough credit check. However, there are a few digital lenders that can allow for more lenient lending requirements like Square, Shopify and Paypal. These lending institutions can help you secure an online small business loan if you do not have the credit score to qualify for a traditional loan.

Loan Consulting Pro is a 21st century digital lending service that works with businesses of any size and in any stage. Whether you need working capital or startup funding, we can connect you to the right lender for your present and future business ambitions. We collaborate with experts in a range of business industries and can help you secure the best terms and rates on your loan.