Should you apply for Unsecured Florida Small Business Loans?
Unsecured loans receive a lot of bad talks, which is understandable. But the critics always fail to let small business owners know the benefits of these loans. As a result, many business owners are unable to make objective decisions regarding them. We believe unsecured Florida small business loans can help save your business and improve your credit score.
Benefits of Unsecured Loans
• No Collateral Required
First, unsecured loans give you the capacity to access credit without having to risk your property and assets. This is not so with secured loans. In case your business starts experiencing difficulties repaying the funds, you will have a lot less to lose if you default. Usually, unsecured loans are given on trust and reputation- not based on collateral.
• Applications can be Processed Faster
Applying for unsecured loans can be done quite fast over the internet. Since you don’t have to provide collateral, you can simply give your details and once verified, your request will be processed. In our case, the unsecured business loans are given within 7 business days of approval.
Small businesses usually experience urgent financial needs, and with such forms of credit, less time is wasted. The last thing you would want for your business is delays to customers, especially if you are not yet established in your industry. Going for secured loans will require lots of scrutiny and paperwork, and these will waste a lot of your time.
• It is Easy to Obtain an Unsecured Loan
Unsecured loans don’t have many requirements, which is why they can be processed online without underwriting processes. At GoKapital, we give loans to small business owners with credit scores of over 620. You only need to have been in business for a period of 2 years and have a gross annual revenue of $150,000. Most start-up companies meeting these requirements will still be unable to even get a Florida small business loan in a conventional bank.
After submitting your documents, our team will assess your commercial operations and approve your loan within three business days. In seven business days, your request will be processed.
To access our small business loans Florida, you only need to furnish business tax returns for the preceding two years, personal tax returns for the previous year, bank statements going back six months, and a balance sheet.
• You can Access a Good Amount of Money to Boost your Business
Unsecured loans can give you the chance to get sufficient money for your business needs. With our small business loan Florida, you can get between $25,000 and $500,000. Such amounts can hardly be obtained from a bank, especially if you have bad credit. Every business owner is also aware of how hard it is to run a business without credit, given the difficult financial times we are living in.
This money can go a long way in making your business profitable through the purchase of equipment and the daily running of affairs.
• Only the Business is at Risk in Case of Failure
In case the business goes under and you are unable to make enough money to repay the loan, your personal finances will still be safe. As mentioned previously, you don’t need to apply for this form of credit using collateral. If you experience failure to repay the loan, it is only the company that will be at risk. In that case, the business can be liquidated or sold, and the resulting funds will be used to repay the debt.
To prevent such occurrences, we check your revenue over the past years to determine whether you are in a position to pay the amounts under consideration. A business that is run with a solid plan and competent workforce will usually post consistently high profits. Going through the profits is our way of determining how capable your team is, and this gives us the confidence that your company will be able to raise the capital to pay the loan in the set period. From your end, it is important to make sure you have a workable plan to increase revenue in order to make your business profitable, and also to avoid getting into trouble as a result of defaulting.
• Favorable Terms and Conditions
To protect small businesses in Florida, we offer competitive interest rates. Such enterprises are usually in a financial struggle and imposing excessively high-interest rates will not do anything to make them grow. This is why the interest rates are set at the lowest possible levels for unsecured loans. We also understand that business owners with poor credit scores are not likely to have a lot of money to invest, and making them pay unreasonable amounts in interests is simply not fair.
Our interest rates start at 5.9 percent, and payment is made every month. If you are able to pay sooner, you will not have to cater for pre-payment penalties since they don’t exist. Paying your loan sooner can help save you a lot of money in interest rates. Lots of other companies impose penalties on early payment, and this means you still end up spending more money on the repayment of the debt. That is not the case with us.
The loans are meant to be repaid in 5 years, depending on the option you pick. Also, the payment period can be as little as a year and you have the freedom to repay much sooner if you wish. As said before, the prepayment of the loans does not lead to penalties. With secured loans, the payment periods are usually a lot longer. This means that you will owe the financing institution for a greater period. Such a situation will not be in the best interest of your company.
What Should You Consider When Applying for a Small Business Loan?
GoKapital is heavily involved in supporting small businesses in Florida, especially since banks and other financial institutions are not usually ready to provide financing for such enterprises. It is in our best interest that you make wise decisions when applying for unsecured loans in our institution. When applying for a small business loan, consider the following:
• Your Repayment Plan
Going for a loan without a prepayment plan is the best way to make your business fail. The only way we can offer great loans consistently is if borrowers repay the amounts owed and in good time. For this reason, you need to have a solid business plan, and make sure you surround yourself with highly competent staff. Knowing how you’ll repay the loan will also help you know when you are straying from the plan and adjust your strategy accordingly.
Paying back you a loan in time will also help to improve your credit score.
• The Terms and Conditions of the Loan
Taking a loan without considering its terms and conditions can lead to major issues later on. It is important to know when the loan needs to be repaid, and what happens if you don’t pay back. Of equal importance is to consider the policy regarding the pre-payment of the loan. In many institutions, borrowers are charged for paying the loans sooner than expected.
Paying your loan sooner helps to save you some money on interest. Penalizing borrowers for early payment can cancel out the savings made. Ideally, you should get an unsecured loan from a company with no pre-payment penalties. You need to read the fine print before talking out any loan, no matter how small.
Unsecured loans are frowned upon by many. Regardless, these advances have helped many companies get through hard times, especially start-ups. Banks and major financial institutions have very high requirements for business loans, and new companies are unlikely to qualify for such credit. Unsecured loans can give you the capacity to grow your credit score and at the same time finance the daily needs of your small business. You can apply for a small business loan from the internet and get the money within 7 business days.