Why Unsecured SMB Financing?
Online companies offering unsecured small business loans are a vital option in today’s world for many reasons. Many businesses are denied financing due to poor credit, stifling growth. Others have financing available through traditional lending institutions, but the lengthy process and demands of applying don’t allow them the money when they need it.
The above lenders have a much more efficient method of establishing credit worthiness, often based on a merchant’s business health and selling history, not a simple credit score. Proprietors who have been denied a loan through traditional lenders will find these methods fast, easy, and surprisingly affordable.
Which businesses use unsecured business loans as a financing solution?
The list of businesses that have benefited from Peer to peer business financing is enormous, and ever growing. Some lenders work with only web merchants. Others provide loans to brick-and-mortar institutions: restaurants, salons, markets, etc. Today, if your business makes money, you can find a lender in this burgeoning ecommerce market.
What Should a New Borrower Know?
The unsecured small business loan market is evolving quickly. Emerging on a broad scale around 2010 with lenders like ZOPA, billions of pounds have been lent to more than a million businesses industry-wide. P2P business lending adapts to meet the needs of broad and niche groups, like invoice borrowing and even large development loans. New users should look for trusted companies, clear terms, and ample user feedback from independent sources. For users like Elliott62 on ReviewCentre, services like Zopa beat all other providers. SalGal53 cautions against high interest rates, in an otherwise glowing testimonial.