We’ll delve into how this funding option works, the pros and cons, eligibility criteria, and their potential impact on your startup’s financial health. Additionally, I’ll provide actionable advice on choosing this funding option for your needs and growth stage, supported by real-life examples and data.
An Unsecured Term Loan is a loan that doesn’t require collateral. It’s based on the borrower’s creditworthiness and is repaid over a set period with fixed monthly payments. Call us at (877) 381-4433
How It Works
After approval, you receive a lump sum that you repay in fixed installments over a predetermined period, usually with a fixed interest rate.
Pros and Cons
Pros: No collateral required, predictable payments, can help build credit.
Cons: Higher interest rates, strict eligibility criteria, impacts cash flow with fixed monthly payments.
Eligibility Criteria
Strong credit score, steady income, and a robust business plan. Lenders will scrutinize your financial history and revenue projections.
Impact on Financial Health
Provides a lump sum for significant expenses but can strain cash flow due to fixed repayments.