19 Aug 2021, 10:30 — 3 min read
Your business may require funding at various stages and for different purposes such as to expand operations; finance new equipment and inventory; or meet working capital requirements until new earnings reach a desirable level.
Therefore, as a forward-looking and savvy business owner, you should understand what is the ideal loan for your business growth.
SMEs can typically choose between secure and unsecure business loans. While these terms may sound familiar, you must understand what they mean. A secured business loan is a loan where the lender offers a sum of money against a collateral which is also known as ‘security’. This collateral could be a property. In the eventuality that the loan applicant fails to repay the principal and/or interest amount during the fixed tenure, the lender can take action as per the terms of the agreement.
In case of unsecured business loans, an SME does not require any collateral. This is generally offered to the borrower depending on their credit rating and perceived repayment capacity.
Here are some reasons why secured business loans are the smart choice to power your business growth and unlock your true potential.
Click here to apply for a secured business loan.
Image source: shutterstock.com
Posted byGlobalLinker Staff
We are a team of experienced industry professionals committed to sharing our knowledge and skills with small & medium enterprises.
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