How to Get an Unsecured Business Loan: More Information on This Product Will be Available on the Universal Business Structured Solution Web Site on June 10th, 2013

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Guide for Unsecured Business Loan Financing, courtesy of Universal Business Structured Solution.

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UB Solution is equipped with specialized knowledge of the marketplace. By examining every aspect of our client’s business UB Solution is able to engineer affordable financing quickly and efficiently.

Unsecured Business Loans and Working Capital Financing product was launched by Universal Business Structured Solution..

Starting a new business requires an entrepreneurial spirit, knowledge, courage and of course, a financial commitment from a business owner. If all of the above are in place, chances of surviving of a startup business dramatically increase, however practically no business would be able to survive without a right financing in place. An unsecured business loan sometimes is the only option for a startup based on a business' credit history, collateral available, etc.

At this point the question is: would an unsecured loan be the entrepreneur's best option? An unsecured business loan offers financing options for businesses that do not require personal or business assets to be used as a collateral. However with no added security for a lender they would require an owner's decent level credit history and the proven ability to repay a loan. By definition an unsecured business loan considered more risky than a collateralized or secured loan, and therefore these loans are more expensive.

An unsecured business loan is a loan that might be offered by a bank, another traditional lending institution, by a private or an institutional investor. These loans do not require personal or business assets pledged as a collateral. But the minimum lender's requirements have to be met in order to get approved.

In order to get approved for an unsecured business loan the minimum underwriting requirements would be:
1. Time in business: at least one year
2. Annual gross revenue: $100,000+                                                    
3. Average bank balance: $3,000+
4. Minimum owner's credit score: 500

UB Solution might be able to get an unsecured business loan approved within 24 hours for the amount up to $ 35,000. Loans are available up to $250,000.

An unsecured business loan can be used for:

  •     Purchasing inventory
  •     Facility expansion
  •     Hiring additional employees
  •     General working capital
  •     Launching a marketing campaign
  •     Renting, buying or leasing equipment

Interest Rates And Fees of an unsecured business loans are usually higher and the repayment terms are shorter. The size of the loan also plays a role in the interest rate: the smaller the loan amount the higher the interest rate of this loan. Upon approval a lender will charge an application and origination fees that would be payable at the successful closing. Depending on a structure and a preference of a particular funding source an Interest Rate can be either fixed or variable on this kind of loan.

How To Get An Unsecured Business Loan

1.    Find a funding source that offers unsecured business loans
2.    Review lending requirements
3.    Submit an application
4.    Review and negotiate the terms and conditions of the loan, if possible
5.    Sign the loan documents and set up a repayment schedule

Because of the risk that that the loan will never be repaid in full, including the interest and fees associated with it, it makes these loans much harder to get for a startup business. Not all businesses qualify for an unsecured business loan, but once approved, an unsecured business loan can be a great financing option.

UB Solution is equipped with specialized knowledge of the marketplace. By examining every aspect of our client’s business UB Solution is able to engineer affordable financing quickly and efficiently.

Feel free to contact Universal Business Structured Solution for more information regarding our services or for an initial consultation and evaluation:

Yury Iofe, Managing Partner, MBA
Universal Business Structured Solution
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Yury Iofe
Universal Business Structured Solution
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Yury Iofe, Managing Partner, MBA
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