You might be confident in your ability to pay back your loan, but what if something unexpected happens?
If your business can’t bring in enough money to pay back your loan and you default, your overall finances or net worth might take a huge hit.
These days, when you hear the term “unsecured business loan,” you should be skeptical.
Almost every small business loan out there is secured in some form—there technically aren’t business loans without collateral requirements available. Most small business lenders will require borrowers to put down collateral in order to take out a loan. Collateral is simply something that you or your business owns.
When you apply for secured business loans, you might be asked to put up your real estate assets or home equity as collateral for the loan.
Applying for financing can be a frustrating task for a business owner.