Business loans may be either secured or unsecured. With a secured loan, the borrower pledges an asset (such as plant, equipment, stock or vehicles) against the debt. If the debt is not repaid, the lender may claim the secured asset. Unsecured loans do not have collateral, though the lender will have a general claim on the borrower’s assets if repayment is not made. Should the borrower become bankrupt, unsecured creditors will usually realize a smaller proportion of their claims than secured creditors. As a consequence, secured loans will generally attract a lower rate of interest.
- 3-5 months bank statements
- 3-5 months credit card statements (if required)
- Corporation papers
- In business for at least (6) months
- 1 -2 years tax filing
- (4-18) months terms
- FICO Score 500- up