Financing one’s franchise and how is one of the most important questions for a small business owner. It requires careful consideration of all the options and the terms along with their suitability for your endeavor. But regardless of who you are and what you require, SBA unsecured loans are always a good option.
What are SBA unsecured loans?
An SBA loan is provided by a lending institution but guaranteed by the US Small Business Administration, often known as SBA. Up to 75% of the loan is guaranteed by the SBA in order to encourage financial institutions to lend money to those who would otherwise be unable to access it. An unsecured loan by the SBA refers to a loan backed by no collateral or personal security.
The SBA unsecured loans are a government programme meant to help manifest the American dream. It is a way of helping small businesses stay afloat in tremulous such as this and to help small businesses start and flourish in the American economy. They offer small businesses aid in everything, right from management to capital.
The advantages of SBA loans:
SBA loans tend to allow projection-based underwriting. In simpler terms, this means that the loan can be lent out keeping in mind future profitability rather than current profitability. This means that firms that are just starting out or planning on expanding can get generous loans based on their expected earnings.
The term lengths for SBA loans also tend to be very generous, extending up to 10 years. There is also a Government-mandated cap on the interest rates. It is 2.75 points on loans over $50,000 over prime with terms of at least seven years.
These loans can provide financing for up to 80 or 90% of the project costs. Their down payment requirements also tend to be low. They also have relaxed requirements, especially in the comparison with traditional bank loans. But the biggest advantage remains about the ability of both new and old businesses to apply for an SBA loan.
SBA loans at US Fund Source
To apply for an SBA unsecured loan at US Fund Source, all you need is to have been in business for at least 2 months, a credit score of 620 and $100,000 of annual revenue. You will receive the funding within three weeks and can repay the amount within a period of 2 to 25 years.
In case of any issues, you can simply submit a Freedom of Information Act request for information and you’ll gain access to the files and records held within once your request is processed. SBA loans are competitive and also come with counselling and advice that helps guide the small business owners in every aspect of their profession.
The loans can range from $500 to $5.5 million and are suitable for every single business. Whatever you needs are, an SBA unsecured loan will always be one of the best possible options available to you.
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