Small companies face serious challenges getting unsecured business loans, but are always in need of working capital financing. There are some options for small businesses to satisfy their cash and working capital needs. From business credit card offers to small business loans grants, owners can often find the cash they need without mortgaging their future.
Financing is always important and often elusive for small businesses. Unsecured business loans are typically unavailable to new or immature small companies. Secured loans may be your only available, working option. However, if you must get a secured loan, dedicate yourself to make all payments on time. This alternative to unsecured business loans will allow your company to qualify for credit lines in the future.
Investigate the availability of small business loans grants that are sometimes offered by the government. Should your business qualify as minority-owned (women, African-American, etc.), you may have access to special financing programs or grants. Be diligent, as these small business loans grants tend to come and go. They attract many potential borrowers as soon as they are announced or approved by the government.
If your cash needs are modest, e.g., $5,000 or less, look for business credit card offers. These cards can be helpful cash alternatives and are typically unsecured. If your business is a new start-up, you hopefully have acceptable personal credit to qualify for these credit cards. A credit score of 650 or higher should get you the card you want at reasonable interest rates and terms.
Friends and family can also be an alternative source of small business loans. If they have the financial ability to lend and you convince them your business or idea projects success, you may receive an unsecured loan from these sources.