If you need a short-term cash injection to meet a growth opportunity, fund a bill, meet a tax deadline, take advantage of a supplier bulk purchase discount or any manner of short term business need, an unsecured business loan could be the solution.
How does it work ?
- Unsecured typically means there isn’t a specific asset charged to the bank, however they will normally ask for a personal guarantee (PG), and this is not to be taken lightly. If you sign up to a PG it does mean that you are personally liable for the debt to the limit of the guarantee. If you are unable to settle a guarantee then in theory all your personal assets are at risk therefore this is probably not as “unsecured” a loan as you might have first thought!
- Lenders might also require a debenture.