Many people slave
away at their jobs on a day-to-day basis. However, some individuals prefer to
be their own masters. So, they leave behind the perceived stability of a
regular job and focus on following their dreams. Not all of them end up
becoming success stories certainly. But, the ones that do often end up
inspiring hundreds of others to do likewise.
What Connects Small Business Success Rates to their Funding or Credit
Requirements?
Over the
past few decades, the small business landscape in America has undergone immense
change. Statistics reveal that only about one percent of American businesses
are publicly traded organizations.Unsurprisingly, over a third of the American
workforce work in businesses that have less than 100 employees.
But, it’s one
thing to have a great idea and quite another, to implement that idea perfectly.
As a result, it is hardly surprising to see that nearly 50 percent of small
businesses fail within the first four years. Nearly half of these businesses
wound up because of incompetence-related causes. But, it is worth pointing out
that businesses also require a steady stream of credit for functioning.
Estimates suggest
that nearly 82 percent of start-up ventures fail because of cash flow problems.
A National Small Business Association (NSBA) survey revealed that 27 percent of
businesses were unable to receive the funding they needed. From unsecured business credit to a loan, start-ups
typically require ample funding.Without it, their chances of failure can
increase manifold.
A new business
typically requires a lot of credit in the first few years. This is especially
so because it takes time to generate a steady volume of sales. Without credit
or funding, no business owner will be able to pay for the business expenses of
the start-up. As a result, the collapse of the venture will be imminent.
What is Unsecured Business Credit?
Unsecured business
credit refers to a loan, an account payable or a financing option that a
business receives. This line of credit will not require the entrepreneur to
secure a collateral with the lender. Unsecured business credit tends to feature
shorter terms and higher interest rates. The higher rate of interest serves to
protect the lender’s interests in case the borrower defaults on the loan.
Banks typically
offer business loans of higher amounts. So, if you require a loan that is below
the minimum amount for a business loan, the bank will probably not lend you the
money. Unsecured business credit is ideal for small business owners as it helps
them meet their short-term cash needs. This credit can be immensely useful to
an entrepreneur because:
- It does not require the entrepreneur to offer any collateral, assets, or
security
- It comes with favorable interest rates – especially for low-risk
borrowers
- The entrepreneur does not need to make any payment until the loan is in
use – unlike conventional business loans where the borrower needs to start
making payments immediately after the end of the grace period, regardless of
whether the loan is in use or not
- It provides entrepreneurs with continuous access to revolving capital
for meeting their ongoing needs and,
- The entrepreneur can use this credit for a diverse range of purposes
unlike business loans that usually serve to meet only one objective
Why Business Owners Depend on Midwest
Corporate Credit for Obtaining Unsecured Business Credit?
At Midwest
Corporate Credit, we specialize in connecting small business owners with the
financing they require. We analyze and compare data of the nation’s
institutionalized lenders who offer business products that meet our clients’
demands perfectly. In addition, we cross reference t is data with historical
data of past clients. This enables us to arrive at the best financing mix for
almost any small business. As a result, we’re able to predict the approval
patterns of lenders in our database. This enables us to provide optimal results
to our clients.
With us, business
owners can obtain unsecured business credit with minimal fuss. Our unsecured
business credit lines do not require any collateral. They feature low interest
rates ranging from 6.99 percent to 8.99 percent for full doc and stated income
applicants respectively. You will face no restrictions on how you use the
credit. And, drawing these credit lines will have no effect on your
debt-to-credit ratio either. This is because our business credit lines do not
report to the personal credit bureaus. Above all, you will be able to obtain
the funding you seek in as little as 15 days. To get a funding estimate, click here.
