How to Obtain a Business Term Loan With No Credit

You don’t need good credit to obtain financing for your business. There are a variety of financing options available. While some of them do, in fact, require good credit, others don’t require any credit. You can obtain a business term loan, for instance, with no credit.

How to Obtain a Business Term Loan With No Credit

What Is a Business Term Loan?

A business term loan is a form of debt financing that involves borrowing a fixed amount of money from a lender for a fixed period. The period for which you borrow the money is known as the term. You’ll have to repay the principal of the borrowed money, as well as the interest, by the end of the term.

Prepare a Business Plan

You’ll have an easier time getting approved for a business term loan with no credit if you prepare a business plan. Lenders may want to review your business plan during the application process. If you don’t have one, they automatically reject your application for a business term loan.

Business plans consist of multiple parts. You’ll need to create an executive summary, business description, market analysis, financial information and operations section. When you apply for a business term loan, you can provide the lender with this document. A well-crafted business plan will help you get approved for a business term loan with no credit or with bad credit.

Back With Collateral

Another tip to increase your chances of getting approved for a business term loan is to offer collateral. Collateral, of course, consists of tangible or intangible assets of monetary value. If you own assets of monetary value, you may be able to use them to back a business term loan.

Some lenders offer secured business term loans. Like with other forms of secured financing, secured business term loans are backed with collateral. You can use collateral to obtain a secured business term loan. As long as you repay the business term loan, you’ll retain ownership of the collateral. The collateral simply offers a financial recourse for the lender in the event of default.

Consider a Personal Guarantee

A personal guarantee can increase your chances of getting approved for a business term loan with no credit. Even if your business doesn’t have any credit, you may have credit. With a personal guarantee, you can agree to repay a business loan with your own personal finances.

This article was brought to you by�Intrepid Private Capital�Group�� A Global Financial Services Company. For more information on startup and business funding, or to complete a funding application, please visit our�website.