Secured Loans for Business

Applying for a loan when you plan on starting a business is not a new idea. In fact, about 68% of all small businesses were started from a loan; the 32% used cash to start their journey in entrepreneurship. So if you’re looking to apply for a loan to start a business, do know that you are not – you are never alone.

There are multiple choices and options for loans whenever you’re starting a business – you have unsecured loans, you have secured loans, you can do bank and credit union loans, and you can even approach investors for it!

Even for businessmen and entrepreneurs, financial challenges exist. 39% of which choose to take out a loan to deal with their financial obligations. It’s a large number and that’s why a lot of banks and financing institutions tailored secured loans for businesses.

Where Should You Go?

Whether you’re starting the business or you already have an existing business that needs funding, you can choose a lot of different options for it. You can choose from the main choices: banks, investors, lending and funding companies, credit unions.

These are the most common sources of funds for businesses and most usually, banks aren’t the prime choice for business owners.

Banks can be the most convenient place to take the funds you need for your business. And although that’s the case, you might not get the best out of the loan you ask from the bank.

Banks Have The Worst and Fewest Options

They’re known as the most stable form of financing or lending company, but the amount that they can give you might be considerably be lower or less than what you’re looking to acquire. They have low interest rates, and they have decent repayment terms, but it might just not be enough.

Not to mention they release funds forever, you may want to take a look at other options. Since the boom of the small business industry, banks slowly strayed from providing funds for small business – even if it’s a loan that involves security.

The best option that you have especially if you’re a new business owner is definitely through funding and lending companies. They might have quite higher interest rates but if you’re going for secured loans for business, you can expect to get more.

Here at SoFlo Funding, you can never go wrong. Our company is diverse and flexible as we offer a lot of different options for our clients. From unsecured personal and business loans, secured business loans, and even creative financing, clients that run to us are never disappointed with what we have to offer.

Startups and Businesses

The same way we fund existing businesses, we can help finance startups too. They’re the same, yes, but what we ask for in terms of qualifications and requirements are slightly different. For a startup to be approved of a secured loan, we’d most usually look for the credit history and standing, as well as the lender-history. We’d also need to take a look at the security, evaluate it, but we’ll get back as soon as we can, typically in 24 to 48 hours.

For existing businesses, however, we would be looking for:

• Address Proof of the Business
• Identity Proof
• Age of the Business
• Proof of Income
• Ownership of the Business Proof
• Collateral papers and documents

Usually, the collateral that we would look for would most likely be tied up to any equipment, land, or asset that the business has.