Learn About Bad Credit Unsecured Small Business Loan and Bank Building Loan
An unsecured bad credit small business loan is much like a bad credit personal loan in that it does not require loan collateral. This type of loan is generally requested when a company needs to generate working capital. Although no asset is at risk to the borrower, defaulting on an unsecured loan can have a negative impact on your credit report. Some of the benefits of unsecured bad credit small business loans are that they are easy to obtain, process quickly, and have a low risk of personal loss.
When applying for one of these loans, a person must prepare a presentation that encourages potential lenders to obtain such a loan. A compelling presentation should include the business goals, how much money is needed, and how the money will be spent. Additional information that would help potential lenders decide whether or not to invest in a business consists of the financial and management profiles of the business.
Interest rates for bad credit unsecured small business loans vary depending on the borrower’s credit history and down payment plan. A competitive interest rate can be negotiated if the borrower shows character, management skills, and a strong business dedication. Other variables to consider before getting an unsecured loan include prepayment terms and the lender itself.
A bank construction loan is a loan made by a bank for the construction of buildings for a business. Loans are available for the purchase of real estate, building construction or renovation, and permanent financing. Securing a construction loan can greatly increase the financial stability of a business.
The requirements to apply for a bank loan for construction depend on the bank that offers the loan. In general, any individual who owns a certain percentage of the business must sign the application and provide a personal guarantee. Individuals must also provide personal and business tax returns. The larger the loan amount, the more financial information will be required to demonstrate the profitability of the business and the ability of the owners to repay the loan. Banks look at many factors, including collateral, credit history, income, existing debt, and the life of the business, before deciding to get a construction loan.
Interest rates and payment plans (including down payments) also vary depending on the institution offering the bank construction loan. Most construction loan terms range from six months to one year. In some cases, banks cannot make loans to businesses located in certain states or areas. Some banks have streamlined the construction loan process to minimize the number of documents, people, and payments borrowers must make. People may even be given the option to withhold loan payments until construction is complete.
