Whether you are trying to get a business off the ground or are working to expand your company, you will probably require outside financing. Unfortunately, you may find it challenging to secure the funds you need without providing collateral. If you have no collateral, then you may automatically be excluded from certain types of financing, such as a secured bank loan.
Fortunately, there are many other ways to obtain financing for your business.
Work on Your Credit Score
One of the first steps you should take is to improve your credit score. This factor can have a serious impact on how lenders view your capacity to pay back secured and unsecured loans, cash advances, and other financing options. Make it a top priority to pay back as much as you can on existing loans and debts.
Consider an SBA 7(a) Small Loan
The 7 (a) loan is a type of loan made possible by the Small Business Administration (SBA). If you don’t require more than $25,000, this option could be ideal, and if your business does need more than that, one of these loans may at least provide some of the funds you seek. This is because 7 (a) loans up to this amount do not require collateral.
Apply for a Business Credit Card
By getting a business credit card, your business can simultaneously build credit and get the cash flow it needs to operate smoothly. Just be sure that you have a viable business strategy in place, as well as the projected cash flow you will need to make timely payments on your credit card charges.
Consult an Alternative Lender
Not all lending institutions have requirements that are as stringent as banks. Alternative lenders offer various solutions that do not require collateral, such as purchase order financing, unsecured business lines of credit, and merchant cash advances. If you lack the collateral needed for certain kinds of loans, contact Whitefish Funding for alternative financing options.