Airbnbs are the best holiday rental options for large groups of travelers, including families, groups of friends or a combination of the two.
A decade ago, a single hotel room could fit no more than 3 individuals. This made it difficult for a large group to spend a gala time together while vacationing. Airbnbs have solved that problem for those longing to have a private space to themselves along with their near and dear ones. These days, the trend is to hangout and chill together till late, which cannot be done in cities that shut down after midnight. Airbnbs are thus the much needed solution to that problem.
After all, who doesn’t like to unwind with their friends and family by their side, especially when on vacation?
Airbnbs offer many bedrooms and bathrooms. They also have common areas like a living room and kitchen. This offers a space that has both privacy and liveliness.
These are properties given on rent to groups of people who want to vacation together, without having to say goodbye for the night to each other at a time when there’s no place to be after midnight. They can instead choose to hang out together after the day, in a common room, and those who wish to crash before the night ends for their peers always have the option to head to their room as and when they feel like it.
Another advantage of renting an Airbnb is the fact that a huge group of people can enjoy with each other, without any kind of external interference. Since airbnbs are more or less rented houses, some of them may even come with more activities like swimming, basketball and more. The group of people currently staying there can use these features to have a great and fun time together with each other, and to avoid any unwanted comments, stares or judgement.
The last yet most important feature of an Airbnb is the fact that they are way cheaper than hotel rooms. So, even if a traveller wishes to travel solo, he/ she can rent an Airbnb instead of a hotel room, which can in turn help him/ her also save more and spend it on other necessary or wishful products and services. This also works well for those who are travelling on a budget, and for those who are travelling to education and need a cheap yet comfortable option to live in.
For a business as progressive, comfortable, flexible and affordable as this one, could oneget a business loan to offer better services and more spaces?
The answer, indeed, one can! There are plenty of options to get business loans for Airbnb business. The best option is to apply for an online business loan. This is especially true if applying for one with a traditional lender seems difficult.
Online Business Loans for Those Wanting to Invest in an Airbnb
The concept of an Airbnb is a rather new one, and isn’t as expensive as that of a hotel business. That’s why it may be difficult to get the funds you need for such a business from a traditional lender.
Wondering where can you get a business loan for Airbnb? Your worry ends here. Since you can always get a loan from a trusted online loan lender like BusinessCapitalUSA, offering business loans to people who choose to start small businesses.
We only need a few simple documents from you. Traditional lenders ask for things like credit scores and collateral. All we need you to have is proof of revenue and for your business to be at least 1 year open from its commencement.
As long as you meet the basic criteria asked for by us, you must receive the funds that you need for your business without any hassle.
The one thing that human beings cannot survive without is food. As we all know, food is the fuel that our body needs, and irrespective of what kind of diet we choose to follow, we can’t emphasize on the fact that the body needs it at the end of the day. Even if one is on a liquid diet consisting solely of fruit juices, detox teas and water, they still need a source from which to get their required edible items. Continue reading →
A disabled person, irrespective of what the disability may be, can find it harder to handle situations and needs when compared to a fully able person. However, at some level, it may be safe to say that the majority of people are handicapped in some way or the other. Where some people may have physical issues, others may have difficulty dealing with emotional situations due to their own share of stress and anxiety. Everybody comes with their own baggage, so who’s to say that a physically disabled person cannot work as well as or even better than an abled one?
While taking that aspect into consideration, the world has started looking at people with physical disabilities more equally than they used to at one point. That’s why, it isn’t all that difficult for a handicapped person to get hired for a certain job role. Take Stephen Hawking for example- a man who was bound to a wheelchair his whole life, but never let his sufferings come in the way of his success.
There are many such great examples of physically unfit people becoming renowned across the world, due to their own capabilities, proving that physically fit people are not even a patch on them.
Now, let’s talk business- Can Physically Disabled People get Business Loans?
The answer- sure!
There’s no reason for a lender not providing funds to an individual as long as that applicant meets the basic criteria required to be fulfilled. With online business loans that are easier to get as compared to traditional loans, the main criteria that makes or breaks an application is the revenue aspect of a business. As long as the individual requesting for funds for a business meets this particular criteria along with some other basic qualifications, there shall be no reason at all for a lender to sent funding.
Whether a borrower is bound to a wheelchair, is a victim of panic attacks or is completely stable both physically as well as mentally, has got nothing to do with whether or not his business shall be funded by an online loan lender.
A borrower may have a broken leg but he may be able to qualify for the largest amount of funds offered by his lender, or a borrower may be highly athletic, calm and composed and happy and may still not qualify for a loan at all.
However, how much of an amount one shall get approved for is directly related to how much revenue his business generates during a given time period (every lender has his/ her own policies, which may include considering the revenue generated within a month, 3 months, half a year or a year, etc.).
So yes, a physically disabled person shall very well receive funds from his online business loan lender as long as he meets the lender’s eligibility terms, irrespective of what his/ her physical situation may be.
Being one of the largest and most successfully developed nations in the world, the United States sees a lot of its people wanting to start businesses of their own. However, due to the huge number of individuals wanting to apply for loans with traditional lenders, many of their applications get turned down. Traditional lenders face a lot of rush in the States and hence cannot manage to fund everyone who applies. That’s why, a number of people are left with rejections. Continue reading →
Loans and other credit products have played a crucial role in the growth of many businesses and even national economies. Having a solution that can provide your business with the required funds at the right time, can be a significant part of a recipe for success. For this reason, line of credit loans are gaining popularity in business and many of these are available today with ease. Nonetheless, establishing a line of credit is not always possible and it may take time for such an ongoing agreement to fall into place. If your business has not established a line of credit yet, and you need a quick loan, this article is here to guide you about alternative loans which can enable you to quickly secure the funds you need for your business. Continue reading →
Over the past decade, the American retail industry has seen unprecedented growth. With rapid digital integration, a full increase in revenue and an increase in urbanization, the retail sector is expected to reach $7 trillion by 2025, according to many experts.
However, as analysts say, this is just the beginning, despite the competition posed by online shopping.
With the widespread emergence of organized shopping and retail units across the country, the retail sector is expected to grow at a rapid pace despite the rather new momentum that online stores have gained. As a result, investing in launching a shopping mall, even in small areas, can be a great business proposal as well as a great challenge.
Given that a business loan for a mall can be offered to you in a variety of ways, one can view malls as an ideal investment for a business venture. Apart from the mall itself, financing the operation of a shopping mall is also not hard, making it another reason that may encourage you to invest in such a business
Malls in Ideal Locations: Why Do They Make Good Business Opportunities
Malls are no new concept in the country and many parts of the world in fact took inspiration from the US, as they transitioned from unorganized retail sectors into malls and online stores, just like here in the US. However, malls are still in their youth as a sector – being just over a century old.
As of 2022, malls and supermarkets have found success not just in the largest cities but also in smaller cities, and many new projects are currently underway in many growing cities. Therefore, for those who want to get into the wholesale and retail business, or expand their existing business, it may be a good time to invest in these proposals.
Now, when it comes to financing a business, a few tasks will require a major investment right from the start. These include –
Obtaining the required permissions to build a shopping mall
Market research and research costs
Investing in the space in a business environment
Setting up the infrastructure
Construction costs, including the interior of the mall
Hiring skilled workers
Marketing and advertising costs
Operating expenses to cover costs such as utility costs, repairs, etc.
The cost list is too long – the list above is only a fraction of what expenses can be. However, with a good shopping mall loan, you can meet these costs without much hassle.
Types of Business Loans You Can Get for Your Mall
Starting a shopping mall or operating it, even on a small scale will require huge expenditure on your part. Even if you need to renovate or expand an existing one, you should also be prepared to incur significant costs.
To meet such expenses, you can apply for the following sorts/types of loans for your mall:
Commercial Real Estate Loan
As the name suggests, these loans are only available for the purchase or construction of commercial centers. These are large ticket loans, which can be used to adequately finance the purchase of an existing building or to build a new one in your mall.
However, these loans are subject to some restrictions, as the amount available can only be used to finance the purchase of a real estate.
Secured Loan
It is the common type of business loan, where you can get advance payment against your gold, residence or business, using those as collateral. These can be viable options as they do not limit end use and can be used to fund any part of starting a retail business.
However, borrowers should be able to satisfy a few borrowing terms for the eligibility of malls in this case, which may limit their chances of obtaining this loan.
SBA Loan
Getting an SBA Loan approved might depend strongly upon the eligibility for the business. If approved, this type of a loan can save you from high interest rates and hard terms. However, SBA loans can take a lot of time for approval and disbursement and may not have a high chance of being approved in the first place.
Alternative Business Loan
Alternative business loans are designed to serve almost everyone. They can offer more acceptability, higher chances of loan approval and quicker funding versus other options in the market. The limitation is that most alternative loans would be significantly expensive versus other traditional loans as there tends to be higher risk involved in alternative lending.
Some loans are considered more ideal for some projects versus others, depending upon the way they limit or do not limit usage, whether they are large enough to be used to finance any of your mall needs – from infrastructure costs to operating costs, marketing or rental costs, and whether your credit performance and business plan can be served by the loan or not.
Also considerations such as requirements of security (collateral) and the qualification terms laid out, can impact your decision for taking out a loan for your mall.
Why Does an Alternative Business Loan Make an Easy Choice for Funding?
At Business Capital USA, we serve as an alternative lender providing quick and flexible loans which you can use for your mall business – no matter what stage the project may be in.
Our loans come with a number of attractive features that make them a great option for starting or getting funded for operating a shopping mall. Some of them are:
Online & telephonic service
Whether you need to get in touch with us for queries or whether you wish to apply for our loan, we have a service that’s available on call and online – there’s no need to visit our centers physically. You just need to process the loan application and every other need via our online portal or get in touch via a phone – no need for store or office visits. However, if so needed, our team can coordinate visits too.
Quick and reliable loans
The process from applying for a loan to acquiring it is much faster when you choose Business Capital USA. Also, the reliability of our loan – indicated by a high approval rate – is considered amongst the highest in-class.
Complete safety of your property & assets
Are you worried about the safety of your real estate, equipment, vehicles or gold? Worry not, as our loans need no collateral – just a personal guarantee of repayment is enough.
Get the maximum funding within your eligibility
The loan amount you get with us, can be any amount of your choice and we always work to deliver you the best estimate of loan eligibility, while also ensuring a fair margin of safety so it’s likely that your business would be able to cover the loan.
Competitive interest rates and easy payment
While alternative lending does make loans expensive, we always offer competitive deals for our business loans. Additionally, we provide repayment flexibility that – subject to your eligibility – enables monthly or bi-monthly payments, easy pre-payments and simple terms to extend loans if needed.
Repay conveniently
Not just flexibility, repayments with Business Capital USA are also designed to be easy. With the support of ACH transactions, you’re never likely to miss out on a repayment schedule.
Apply online
Having understood the benefits, if you are ready for the mall business loan, applying for it is an easy task! Just a simple online application gets you started and our team shall work with you once the details are filled in and submitted.
Many restaurants have been impacted heavily by the pandemic and have lost significant business, cash reserves, and even gone into debt. Almost everyone knows of at least one restaurant in their vicinity that closed down in the recent past. But some restaurants are using business loans and getting back their lost ground. We have also funded some small businesses – including restaurants and cafes – that have benefited greatly and not just returned to their previous momentum but have also grown stronger than ever before.
In today’s topic, we use 8 takeaways that we gained as insight from those restaurant businesses who’ve seen great progress using loaned money to their advantage, in the recent past.
The 8 Great Ways
While there could be several ways in which loaned money can be used by any business, including restaurants, we have picked 8 that are generally turning out to be beneficial for businesses in the current market scenario.
1. Renovations and refurbishment
One of the most simple ways to spike curiosity and create excitement within customers is to make minor to major renovations and refurbishments in the existing restaurant facility. Apart from that, renovations and refurbishments often lead to improvements in the work environment and tend to keep employees more motivated at work. Done right, the value that such investments provide often surpass the invested amount multifold. In today’s market environment, it is also easy to focus content marketing upon the renovations and refurbishments done, and take even more advantage of the investment that way.
2. Adjusting floor plans and seating arrangements
Depending upon the need, changing the existing floor plans and making seating adjustments can provide many benefits like increasing the capacity, easing movement, making the premises seem larger, and enabling social distancing. While priorities and needs may define what’s needed to be done, dedicating funds towards getting it right, could be a step in the right direction. Many restaurants have used loans to get the funds they need to make changes that their current market situation required, and this has helped many of them serve the market efficiently.
3. Enhancing menus, offers, and promotions
Times have changed, trends have changed and the market demands are in many ways, not what they used to be. Many restaurants have invested in enhancing their menus, offering healthy foods, creating attractive offers and promotions, and a lot more, to take advantage of what’s trending and what customers can afford or are willing to pay for. Furthermore, even the delivery of menus to the customers in the post-pandemic world is different – for example, today, most restaurants present digital menus that can be accessed from a mobile device while the orders can be placed with zero contact or direct communication with the serving staff. Many restaurants used loaned money for investing in such enhancements effectively.
4. Investing in training
From new staff to experienced ones, all could benefit from training – be it induction and orientation to a restaurant’s standards and service design, or training related to hygiene, sanitation, safety, etc. Training has forever been seen as one of the most valuable investments in the restaurant business, but never has it been as significant as it is in today’s environment. For every restaurant business that needs additional funds to invest towards training, a loan could be of help.
5. Implementing new technology
Technology has served as the backbone in managing many of the challenges that the pandemic brought with it. It has supported virtually every industry and the restaurant business is certainly one of those that has seen many developments and solutions that are practical and feature-rich. However, most technology comes with a heavy price tag. While returns on such investment tend to be significant and lasting, investing may be a challenge, that loans can help you with.
6. Refreshing the marketing strategy
No investment is seen by experts as having the potential to provide returns at par with marketing. However, marketing has evolved in unimaginable ways and it is safe to say that staying up-to-date has become the name of the game. If you haven’t already invested time and funds to refresh your marketing strategy, you might be missing out a lot. Many restaurants have benefitted well by investing funds towards restrategizing their marketing and implementing the strategies thereafter.
7. Going online
If your services are not available online yet, there’s a whole lot of opportunities that you might be missing out on. From home deliveries to online promotions, reservations, and more, the internet has become the most common way consumers discover and use the services of restaurants today, not just in cities but also in most towns and villages. Although there are many ways to go online without investing any money, some great ways may need investments in various forms, which can be provided by loans if needed.
8. Starting a new outlet
This list would be incomplete without this point. The pandemic days have shown that almost nothing is permanent and this includes the significance of the location. There can be great advantages of opening a new outlet in a new location or in an existing location where such demand is estimated. Costs associated with starting a new outlet can be managed efficiently through the use of a business loan.
Business Loans for Restaurant that are Easy to Procure
When procuring a business loan for a restaurant, chances are that you opt for an alternative lender due to the ease with which you can qualify and get funded. At Business Capital USA, we serve as an alternative lender offering quick, simple, and reliable loan solutions for restaurants, cafes, bars, and other similar businesses. To get a loan, simply fill in our online loan application and our team shall get in touch with you to provide suitable solutions.
Loans for Restaurants with Bad Credit Performance
Facing bad credit woes? Getting a loan for your restaurant shall remain no challenge as we provide restaurant business loans for bad credit borrowers too. Simply hit us up and your business could benefit from a quick and convenient borrowing solution.
Marketing can be an invaluable tool for the progress of any business. However, expenses upon marketing can be significant and while the return on marketing is often the best return on any investment that a business may make, sometimes spending on marketing may not provide the results that a business expects in return.
Understanding loans and what can help make the value of marketing likelier to match or exceed the expenses on loans is important when you plan to use marketing loans for businesses. A marketing loan can be good or bad depending upon how likely it is to benefit the business in this way. The right understanding can tilt the scale towards better potential benefits.
The Expenses of a Loan vs. the Returns on Marketing
The value of loaned money being utilized towards marketing plus what expenses relate to the loan, like the applicable fee, and interest on it, is often compared to the result of the marketing, to understand or estimate how beneficial the marketing loan has been for the business.
The benefits of marketing can be many. They are typically going to fall in one of these categories:
1. Immediate and direct benefits
When marketing initiatives like campaigns and adverts drive direct sales and generate revenue through various forms of direct conversion, it can be easy to measure the performance and output of the marketing. Such growth can easily be compared with the cost of the marketing initiatives and the loan thereof.
2. Long-term/sustained and indirect benefits
Apart from the immediate and direct benefits, there can be a vast number of indirect benefits that impact a business in the long run, such as, brand awareness, reputation, followership, lead generation, and other such factors. Measuring what value these generate can be more challenging, and so, it is typically a strategic or managerial decision to estimate the value of marketing initiatives and plans of this nature.
The Marketing Plans Play a Decisive Role
Apart from the estimated or forecasted value of returns on marketing, the marketing plans themselves can impact whether or not a marketing loan for a business is worth it. A good marketing plan can bring about immense valuable benefits which can give significant immediate and/or long-term benefits. Oftentimes, compromising upon the quality, time, depth, partnering entities, etc. that are associated with a marketing plan, can lead to the plan losing much of its value. On the other hand, too much expenditure towards marketing or investing in the wrong kind of marketing plan for a business can also have its downsides and can lead to less favorable results. Nonetheless, assuming that a marketing plan is well-constructed, it is certainly a given that the right budget and the right implementation are likely to lead to valuable outcomes for the right business.
Sometimes, financing is what it takes to make a no-compromise marketing plan and implement it in a business. And this brings us to one of the keys to marketing success.
It Often Takes Money to Make Money
One of the few “almost universal” rules of business, is that it often takes money to make money. When it comes to marketing, it is typically increasingly easier to reach the right audiences with the right messages about the services and products of a business, when there isn’t a resistance to funding a strong marketing plan that is designed mindfully. However, it may not always be this simple. Any business needs more than a combination of various things falling in order and marketing is only one amongst all of them – a board one in its own right.
That said, when there isn’t a compromise on funds that are to be invested towards marketing, it can be easier to achieve the targets and make the best of a sound marketing plan or strategy. For this reason, many businesses use loans when there is a need for added finances, to prepare and implement a strong marketing plan.
Bad Credit Loans for Your Business
Businesses of various sizes and operating within various industries have seen previously unrivaled challenges in recent times and bad credit scores have indeed become common. We at Business Capital USA are an alternative lending company and we offer business loans to bad credit score holding businesses and business owners too. Our eligibility terms are independent of credit scores and instead of credit scores, we can release funding based upon other important indicators related to revenue, profitability, and the time since when the business has been in operation. In certain cases, we also provide marketing loans for businesses with no hard credit checks, leaving the current credit performances untouched.
So, as you use our loan to invest in marketing to get your business progressing and growing, you can then invest the returns towards healing your credit performances and making other loans more affordable for the future of your business.
Fund any Marketing Plan with Business Capital USA
For a marketing plan that you may have, there could be a need for financial support and we are here with you. A simplified lending process is what we offer. With us, you can get:
A quick and easy online loan application process
Simple eligibility terms
A reliable loan with a high chance of approval
Minimum paperwork
Loan approvals in as little as a single business day
A transparent loan offer
Flexible repayment choices (subject to eligibility)
Funding in just two business days
As you apply for a marketing loan for your business through our online application system, you shall be contacted by our team and we shall work to provide you with a loan offer that suits your business’ needs.
Christmas brings a peak season for many businesses across various industries. From online stores to supermarkets, clothing stores, gift shops, discount stores, warehouses, chocolatiers, automotive stores, and a lot more – almost all businesses tend to see a significant impact, and it’s hard to think of businesses that don’t. However, businesses often stock up too little or too much for too short or too long a duration during the season. What we present here is a simple and practical guide that can help your business understand when the right time is for you to stock your store for Christmas. And yes, as we explain, the information shall also help you estimate the quantities. For further reading related to that, there’s a link to a well-written article that we share with you!
Do You Have Historical Data?
Historical data can be of great help as an accurate indicator of trends for your business. After all, every business is unique, and often, trends tend to have a pattern. Yes, each year is also unique. If your business model hasn’t changed significantly, historical data can be an invaluable tool for making decisions about whether to stock your store for Christmas. Forecasting is often efficient using current market data in combination with historical market data and historical data of one’s own business.
Indicators like: previous years’ sales and market performance, and year-on-year growth, can be used to create an estimate for the current year’s forecasts of the Christmas season. Accordingly, inventory and duration of promotional sales will be in need to support sales.
Your Industry is a Key Factor
This is one of the significant factors to understand. The industry in which your business operates plays a crucial role in how Christmas impacts the business. Specific industries like clothing, logistics, gift, stationery, etc., see a sharp rise, while industries like adventure sports, education, etc., see a slowdown. Not to forget, industries like nightlife, entertainment, and banking can see varying trends from business-to-business and year to year depending upon numerous factors.
Understanding your industry, and the impact of Christmas can help you know how best to respond to the decision. It leads to a decision on whether to stock your store for Christmas is needed or not. By taking advantage of the trends, consumer behavior, and seasonality, businesses can enhance their focus on sales and marketing. They can drive sales of the right items to the right consumers during various seasons.
The 80-20 Rule
If trends across the market are to be spoken about, the 80-20 rule is strongly valid for Christmas sales. Study the data and trends related to Christmas sales across the US, and it becomes easy to see two trends:
Close to 80% of the increased sales of most stores and businesses come from close to 20% of the items sold
Close to 80% of the increased sales tend to go from close to 20% of the average promotional period
But why is this data useful? Stocking up is not a one-time activity. The data helps to understand whether to stock your store for Christmas is a good decision or not.
Suppose your business was to utilize this data effectively. In that case, all that would need to be done to get it right is that an estimated 20% of the added inventory would need to be stocked up in the earlier days of the promotional period. After that, the increase in sales, the trends of demands for various items, etc., can be tracked. Knowing that the peak days could see roughly four times the sales in a quarter of the number of days. This data should help you decipher better estimates of what to stock for the true peak days.
Other Factors to Consider
There are a few other factors that can help your business to respond on stocking for Christmas:
Competition: One factor that is very hard to ignore is competition. Analyzing competitor responses to the season can help your business get ideas, forecasting, and focus points to work on.
Trends: A trend in business is often considered a friend, and thanks to the strong impact of social media today, trends are stronger and more significant than ever before. It’s unwise to ignore trends that may eventually leave a huge impact during festive seasons.
The Economy: This is a strong external factor that significantly impacts the non-essential expenditure of the average buyer. Global, federal, and state economic health substantially affect the average household’s Christmas expenses. Depending on what markets you cater to, a slowdown or an uptrend can significantly impact your business’ performance.
City Events: December may not be just about Christmas – a lot of big events come up during the season and depending upon which city your business is catering to, any major event in the city may impact your business, and such factors also need to be considered while taking decisions about stocking your store.
Your marketing strategy: As much an impact as external factors may have, internal factors, including your marketing strategy, may have the potential to unlock significant opportunities and may also have the potential to impact business far beyond what any external factors may have.
Your sales efforts: Your sales are likely to be the ultimate factor that shall result in the outcome that the season holds for you.
Need Financial Help? Get an Inventory Loan for Christmas
Stores forecasting/expecting a huge demand increase during Christmas often use loans to stock up for the season. We at BusinessCapitalUSA are an alternative lender offering a simplified and quick solution for funding. What more? We accept Christmas business loan requests from bad credit businesses and business owners! Choose us to get a quick loan for Christmas that gives you the cash boost that adding inventories for the season may require. You can also use the funds to drive your marketing strategy and enhance your sales efforts. We are here to provide financing to make the best out of the season. Business Capital USA wishes you a strong season ahead and a Merry Christmas!
Unsecured business loans are undergoing a rise in demand as various legislatures and critical insights have worked to make the market safer for both borrowers and lenders over the years. Today, many experienced and prominent names exist in the industry and some offers of unsecured business loans tend to be quite attractive, offering competitive deals and flexible terms. However, one factor always remains – these loans come with significant personal risk and hence today, we share ways in which the extent of personal risk can be either reduced or limited, for the next unsecured business loan that you may apply for.
So, in short, the answer to the question, “can personal risk be reduced in unsecured business loans?” is yes and as you read this article, you shall be able to understand how and to what extent it may be feasible.
What is an Unsecured Business Loan?
Business loans are typically either secured or unsecured. Unsecured business loans are those which are not “secured” against collateral or an asset of value i.e. these business loans do not require the borrowing business to pledge valued assets that can be seized in case of non-repayment of the loan.
Typically, the risk associated with unsecured business loans is considered to be lesser for the borrowing business in certain ways. This is because of 2 factors:
Unsecured business loans typically have shorter tenures and limited loan amounts
For a lender to recover from an unpaid loan, a longer procedure may apply.
For this reason, the risk in lending for the lender tends to be higher, and this in turn, often leads to these loans having higher interest rates.
What is the Personal Guarantee that Unsecured Business Loans feature?
While not requiring an asset of value as a security or a guarantee, unsecured business loans typically require personal guarantees. That means, should there be an unpaid loan amount, the lender can hold the borrowing business owner(s) responsible for payment of the due amount subject to the conditions agreed to upon the time of the agreement.
Reducing or Limiting Personal Risk
With personal guarantees that apply to unsecured loans, personal risks are always associated. Many terms and conditions as well as ways in which you deal with situations and communication with your lender, may impact the outcome in the situation that personal liability of the loan comes into effect. Here are tips that can help reduce or limit your personal risk:
Communicate with the lender: Communicating well with your business loan lender is likely to lead to beneficial compromises. At any stage, communicating with the lender may – to some extent – help you simplify loan terms, push back payment dates, find a mid-point, etc.
Consider personal guarantee insurance: If you are taking an unsecured business loan of a hefty amount, it is almost absolutely recommended to take up personal guarantee insurance too. In any case, such insurance can reduce your risk to a great extent.
Structure the personal guarantee: Before signing the loan agreement, it is often possible to negotiate the structure of the personal guarantee, i.e. when the guarantee comes into effect, what extent the guarantee applies till, etc. Ideally, these terms must be best written to suit your situation.
Renegotiate: If your business does well after the loan is issued, it may be possible to renegotiate loan terms and the structure of the personal guarantee, on the grounds of healthy performance.
Avoid “joint and several” personal liability if possible: This might be a point of key significance in the situation of a partnership business being unable to repay an unsecured business loan. Not all lenders may be able to accept the avoidance of the clause, but it is suggested to avoid it where possible.
Request to eliminate certain personal assets: On request, it may be possible to eliminate certain assets from the guarantee, and these assets could include your personal residence, your emergency savings, etc.
Choose a higher interest rate over higher personal risk: This choice often seems tough but should things go sideways, the importance of choosing the former over the latter, easily becomes evident.
Carefully consider co-guarantors: Co-guarantors of loans may include spouse, children parents, or other individuals. Before adding co-guarantors, it is important to consider the choice carefully.
Choose an Alternative Lender offering Flexibility
At Business Capital USA, we as an alternative business lender offering unsecured business loans, aim to provide significant flexibility in our loan terms and features. Each loan agreement is drawn out to suit the needs of the borrowing business and our promise for flexibility means that you as a borrowing business owner can negotiate the terms to a good extent before the agreement bring processed and mutually signed. This can help in limiting risks to a great extent, so that in the less likely situation that your business cannot afford to make repayments, the risk to you as an owner or a partner in the business, is reduced significantly. Simply choose us when you need an unsecured business loan and our team shall work with you towards a suitable loan offer.
