To use unsecured business loans for start-up or expansion--or not to use? That's the question facing many small business owners who find themselves capital-hungry but short on collateral. And mixed signals from lenders aren't helping.
The Brits are Shying Away from the Unsecured
The UK can be seen as a microcosm for tanking unsecured business loans trend. According to Online Loans, there has been a 37 percent drop in the number of providers offering unsecured loans since July 2007. In addition to the drop in activity, the fees for this financing vehicle have grown considerably. To make matters even worse, those that are still lending are moving the unsecured portion to a different branch, such as the Barclays Bank brand.
The Feds are Embracing the Unsecured
The Personal Money Store blog is quick to point out that the Federal government has not turned its back entirely on unsecured business loans. Federal Reserve Chairman Ben Bernanke is of the opinion that the health and viability of small businesses depends entirely on access to sufficient operating funds. Unsecured business loans may be required to do that, as owners find themselves with little collateral to offer other than future business.
More Changes that Effect Unsecured Borrowing
Andrew Freiburghouse, a writer, businessman and blogger for Rebuild.org, summarizes several new changes to unsecured business loans that will no doubt affect the way owners borrow in the immediate future. They include a simplified application process, the inclusion of a solid repayment plan, and the virtual disappearance of credit card lines.
Subscribe to:
Post Comments (Atom)
2 comments:
It's the very nature of the changing financial landscape that keeps borrowing in an unsettled state. Borrowers should realize that there will never be true stability. Being flexible and watching trends are still two of the best ways to meet challenges head-on.
Very interesting information. Thanks for sharing. Cheers!!!
unsecured business loans
Post a Comment