Unsecured Long-Term Loans
Unsecured long-term loans can be used for a multitude of business purposes and can come in many shapes and sizes. One of these options is an interest only long-term loan with monthly payments where businesses owners with challenged credit scores can qualify for up to 8 times their monthly revenue.
These interest-only loans, also known as balloon loans will allow a business owner to pay a minimum monthly payment of the interest due for the term of the loan until the 10-year term has finished at which point the principal will have to be paid back. This gives a business the flexibility to put the principle to use as they grow the business without the low monthly payment affecting their cash flow.
A business can also opt to pay the loan off earlier and save on interest by merely paying the principal back. For qualifying business owners’ terms from 3-7 years can be expected on long-term loans. These loans would be fully amortized where the principle and interest are being paid back on a monthly basis. At the end of the term, the full loan value would have been paid back to the lender based on the agreed upon monthly payment, and nothing else owed to the lender.
These loans aren’t secured, require no collateral and can take from 2 weeks to 1 month to fund. While these different options are unsecured the interest paid on them is based on the credit score. Depending on the terms being sought out by the business, additional business financials may be needed such as tax returns, P&L, and Balance sheets.
Find out more by contacting one of our agents for a full review and free consultation.