Business loans without collateral To serve the purpose of business investment, expansion is the option chosen by many sellers, small and medium enterprises. This is a form with many advantages and helps sellers to access capital more easily. Let’s go with Sapo to learn about this type of loan.
1. Business loans without collateral
An unsecured business loan is a form of loan without collateral, based entirely on the seller’s reputation for the ability to repay that loan.
In fact, the form of business loans without collateral is unsecured loans. Borrowers can borrow in many forms such as salary loans, insurance contracts, electricity bills, business registration loans, etc.
Interest rates on unsecured business loans are regulated by each institution. Interest rates at financial companies are usually higher than when borrowing from banks. In addition, the interest rate on unsecured business loans in general will be higher than the interest rates on mortgaged loans and collateral. Borrowers need to consider to choose the appropriate loan form and unit.
2. Benefits of a business loan without collateral
Business loans without collateral help sellers solve capital problems quickly with many benefits that this form brings.
- The loan process is simple and convenient. Customers only need to have a citizen ID and household registration book together with the procedure of the loan package they choose.
- Flexible loan limit, meeting the needs of borrowers with loan terms from 3 months to 60 months.
- The loan interest rate depends on the credit score of the borrower. The higher the borrower’s credit score, which means the creditworthiness and ability to repay the loan, the lower the interest rate.
- Quick disbursal time, from 2-3 days.
See more: Top 3 best banks for unsecured personal business loans
3. Notes when getting a business loan without collateral
– Choose a reputable loan company: Currently, more and more lending institutions appear on the market. Borrowers need to learn carefully the information of financial institutions so as not to fall into the scams of ghost companies and black credit institutions.
– Choose a loan package that suits your business needs: Most loan packages of banks and credit institutions are designed for each type of audience. Therefore, before choosing a loan package, you should read carefully and listen to the counselor to choose a loan package that suits your needs and repayment ability.
– Interest rates and payment methods: Interest rate is one of the most important factors when taking out a loan. Interest rates depend on the creditworthiness of the customer. Therefore, borrowers should choose ways to improve their credit score to enjoy attractive incentives.
– Financial capability: Borrowers should choose a loan suitable to their financial capacity so as not to affect their reputation when they fail to repay the loan, affecting the following loans.
– Read the contract carefully: Before signing the contract, customers need to carefully read the terms, where unclear, contact the staff of the borrowing organization for immediate answers to avoid future consequences. In addition, the borrower must also find out about the fees incurred, penalty fees for late payment, early settlement fees, etc.
4. Business loans without collateral at VPBank
Sapo cooperates with VPBank to support business capital for sellers using Sapo software to quickly and easily integrate many attractive incentives such as:
– Interest rate is only from 1.8%/month.
Loan term up to 60 months.
– Fast approval in 24 hours.
– Simple procedures, support to collect documents where you live.
– High loan, up to 300 million VND.
– Without collateral property.
To access this loan package more easily, customers immediately contact Sapo Money for advice and support.
Business loans without collateral is a simple form of loan, helping sellers easily access loan capital. However, if the borrower does not learn carefully, this form also brings many disadvantages. Hopefully the information in this article helps sellers have more grounds to consider and choose the appropriate form and loan.