Starting up a business can be a trying time and more often than not requires at least some financial input. However, for some people, securing a business loan can be more difficult and a guarantor might be needed. But what happens if you do not have a guarantor? Are you still able to get a business loan? In short, the answer is yes, but how would you go about this? In this article, we are going to look at how you can get a business loan without a guarantor.
How To Get A Business Loan Without A Guarantor
If you are looking to get a business loan without using a guarantor, there are a few things that you will need to keep in mind that will help you to better your chances. Let’s take a look at these now.
First and foremost, you could opt for a secured loan. This is where you give the lender some sort of collateral, in other words, you tie some of your assets to the loan so that, in the event, you cannot pay, these would be used to cover the cost. However, this is something that should be very seriously considered and you need to be certain that you will not default on the loan. If you do not want to tie up your own assets, there is the option to use assets from the business to secure a loan, but again, this can be risky. You may still be able to get a business loan without collateral or a guarantor however you are likely to be offered a higher rate of interest. If you have no credit history, this might be a time where a guarantor is required. However, if you do not have one, the best way to get a business loan is to approach a direct lender rather than going through a third party as they are much more likely to approve you, even if the interest rate is higher and the amount loaned to you isn’t as high as you’d like. If you have a poor credit rating and cannot find a guarantor, it may be simply a case of improving your credit score before applying for your business loan. This can be done by clearing credit accounts, keeping up with repayments, getting on the electoral roll and not applying for too much credit within a short period of time.
Whilst it is possible to get a business loan without a guarantor, this can prove to be tricky and may bring some issues along with it. But that doesn’t mean to say that it can’t or shouldn’t be done.
One of the best ways to ensure that you are getting a good deal on your business loan is to spend some time researching and making comparisons between different loans. This can be done by using a service such as NowLoan nd can give you the peace of mind to know that your business loan will be one which is best suited to your circumstances.