mortagesandforeclosures

by Garrison Galbraithe

If you own a business, you know how difficult it can be to make ends meet all the time. There are times when receivables are not coming in fast enough for you to be able to meet all of your payables in a satisfactory manner. Did you know that there are options out there to help you bridge these gaps?

One type of business loan is an unsecured business loan. Unsecured business loans, as the name implies, are loans that the borrower may be able to obtain that are not secured by any collateral. These uncollateralized debt obligations may be used to expand a business or to deal with near-term critical financial issues.

These unsecured business loans may be used for any reason. Usually people who run their own businesses will use these loans to pay off near-term debts that must be paid in a timely manner. You need to pay the rent on your facility, you need to pay your utilities bills, and you need to pay your employees. There are certain expenses that just must be paid immediately, no matter what. If you do no pay these types of bills, your enterprise may suffer to the point where you need to shut the business down. These unsecured loans can be obtained quickly to make these payments if for whatever reason; you do not have the appropriate cash needed at that time.

Business loans can be used to expand your business. Perhaps there is a new product line that you want to carry, but need extra cash to cover the initial inventory. Maybe the storefront next door to you has become available and you want to expand your presence to occupy both spaces. A business loan is absolutely the right choice.

There are two options with business loans. The most common business loan option is the secured business loan. These are loans that are backed by your business or personal assets. Usually the assets of the business will back the business loan. But sometimes, the lender may request or require that the personal assets of the business owner be attached to the loan as collateral. Typically, the assets would be the owner of the business personal home. You may be able to obtain an unsecured business loan. As the name suggests, these are loans that are not backed by any assets.

If your business needs a loan to make ends meet or is looking to expand into new areas, you will need to make a presentation to lenders. The lenders will want to see your plan of action, better know as a business plan. In the business plan, you need to explain in some level of detail what the money would be used for so that the bankers or other lending institution can better understand how the money will be spent.

Bankers have one major concern when they lend money to business, or for that matter to individuals as well. Bankers want to understand and make sure that you have the means and the ability to make your regular monthly payments to service the debt and still run your business. In order to make sure that you can make these payments, they will usually want to see two or three years worth of tax returns and financial statements.

A business loan is a great tool that can be used to either expand your business into new horizons or to deal with difficult, near-term situations.

About the Author:

Garrison Galbraithe, who has an MBA in Finance and has been writing about financial matters for nearly thirty years, has created a guide to obtaining signature loans online. He offers an abundance of information about how to obtain signature loans at his site. You are welcome to reprint this article - but get your own unique content version here.

Get all the information and photos:: http://mortgagewide.info/you-need-a-business-loan/