The unsecured business loan is entering into a unique period of its development. This familiar form of business financing is leaving the country that made it famous and moving to the Orient. Perhaps because we’ve abused it for so long. Or perhaps because China has a financial infrastructure to handle its consequences. Whatever the reason, unsecured business loans are changing before our very eyes.
Goodbye, Red, White and Blue
BusinessWeek blogger John Tozzi explains an interesting conundrum. In his post ‘What’s the future of small business credit?’, he describes the movement of business from ‘brick and mortar’ to online--and the financing difficulties this trend creates. Big banks are far less apt to grant a $20,000 unsecured business loan for online add placements than for tangible pieces of equipment that can be liquidated if the business fails to make payments.
Hello, Country of the Rising Sun
Unsecured business loans may be disappearing in North America, but they’re just gaining a foothold in China. Citibank (China) has launched unsecured loan programs in Beijing. First launched in Shanghai in May 2008, this non-collateral loan offering has caught on and is spreading. And the best part of the program is that the APRs on these loans will stay steady even through a volatile market.
Unsecured Business Loans for Your Business
AllBusiness discusses unsecured business loans for those brave enough to seek them out. Lenders look at the credit history because the responsibility to repay the loan will fall on the owner. Carefully determine what the loan is for, how it will benefit the business and how you’ll repay the principal.
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2 comments:
China seems to be picking up the ball wherever we drop it. There's a huge unsecured loan market over there. The average amounts may be smaller, but it will quickly scale if Chinese banking entities handle the exchange correctly.
It's almost as if China is watching what we do with respect to finances and going the opposite way. They seem to be learning from our mistakes, which is much better than learning from your own.
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