Unsecured business loans are all purpose loans and are ideal if you require a short-term financial solution. They work by allowing you to borrow an amount and repay when you have the available funds, usually within a relatively short time frame. They fall into two categories:
- Short-term unsecured business loan - best for businesses that need a fast cash injection. Typically repayments will be spread over a shorter period of time
- Long-term unsecured business loan - appropriate for longer-term projects that will yield high profits but need time to invest in the business first. Here repayments can be spread over a much longer period of time
You should think carefully about all the options available to you before going for any of the unsecured business loans deals and make sure you shop around for the best rates.