Why bad credit business owners are turning to business loans that are secured to get financing
Money, Work Force and Materials- these three are the criteria for a business. A business can not run without money and business loans are in high demand. When the company owner has poor credit, it can be extremely tough for that business owner to be eligible for a business loan.
When secured business loans come into play, that is. These loans require additional security so as to be approved. Even more, if you've got terrible credit, then the presence of security will guarantee you to get a business loan readily.
Bad credit secured business loans are provided by websites like Leasefunders.com when the company owner offers security in the shape of equipment that has been paid off and still retains value. They base the loan amount on how much the equipment will sell for at auction. Which means the forms of equipment to use for a business loan that is secured are manufacturing, construction , medical and other kinds of equipment that will hold its value.
Equipment that is NOT good for a business loan that is secured include:
• Restaurant equipment -- this surprises plenty of people. But since restaurant equipment can be purchased cheaply at auction, most secured business loan providers will not consider using it
• Office furniture
The company owners credit is not a element in providing the loan. So long as the equipment has value the business owners charge can be bad and still get accepted.
The repayment terms for a secured business loan will vary. It depends upon the financial and equipment strength of the borrower. Typically, 36 months -- 60 months will run.
For large loan amounts they may want to see your tax returns or / and Your Company
Make sure you only submit. Before the lender will send you a check they will send out a representative to your place of business. They will make sure the gear is in good working order. They'll match the serial numbers to the ones provided on the rental, and they'll make sure the equipment is located at your place of business.
Secured business loans are a great way to get a bad credit business owner. Not only can a business owner obtain a large amount of financing, but in most cases the approval process is 2 -- 5 times and then they may have a person out to a location within 3 days to verify the business loans bad credit equipment is in good condition and fit the serial numbers.