As an entrepreneur, who owns a business, you may many times get stifled by financial difficulties and you may find it difficult to perform the core business operations due to lack of finances. In such a situation, you can’t choose to wait till you save up enough capital to deal with your financial woes because if your business is at a standstill, your revenue will remain still too. You might consider applying for a business loan which is possibly the most convenient solution to upgrade the operations of your business. However, some loans might take weeks or even months to be processed and disbursed but you may not necessarily have the luxury of time. So what should you do during such a crisis? You can apply for an unsecured business loan.
What is an unsecured business loan? An unsecured loan is simply defined as the kind of loan you would not need collateral to apply for. So how is this a mode of fast funding?
Unsecured business loans demand minimal documentation, and since there is no need for collateral to be attached, the collateral evaluation process is also omitted. This makes it a fast business loan option available. If the right documents are submitted, you might be able to receive your loan funds in a matter of a few days.
So how to apply for an unsecured business loan? You may either choose to visit your nearest funding corporation for details or simply browse over the internet to find a Fintech lender on your own. Online unsecured business loans also have a reputation for being quick in processing and disbursal.
What documents would you need to apply for an unsecured business loan?
Even though documentation is important when applying for an unsecured loan, it is kept at a bare minimum. You would need to submit some basic documents such as
- ID proof
- Residential proof
- A KYC document such as aadhar card
- Credentials and vitals of your business
- Bank statements
Except for these, your unsecured business loan lender would also look into your CIBIL record to determine your payback capabilities.
Another factor that helps boost the unsecured business loan process is when the potential borrower submits his/her aadhar card. An aadhar card is like a one-stop solution that helps the lender identify your vital details such as Name, address, phone number, D.O.B, etc. So this saves the lender precious time during the verification.
Once your unsecured loan is disbursed, you may wisely use it to either solve your financial constraints or grow your business through advertising, expansion, upgrading existing standards etc. Nevertheless, proper investment management is the key to growing your business with the help of a loan.
Unsecured business loans are fast funding to organizations that are in need of financial support. These loans call for a worthwhile pick as no security or third-party guarantee is demanded i.e. loans are collateral-free. Hence, there is no risk involved, unlike conventional loans where assets are sold off to satisfy the loan amounts if not repaid on time.
The loans can be easily applied by visiting the company’s official website, filling out the form available with all the necessary details, uploading documents, attaching photographs, etc. Once the application has been verified and approved, loans are disbursed quickly in no time.