In order to qualify for a small business loan, usually the business needs a trading history of at least six months, and a monthly gross income of at least $5,000. Needles to say, business has to be able to service loan repayments.

From loan application to approval decision takes less than 60 minutes. Small business loans can now be approved fast thanks to fintech lenders technology. An easy example is the bank statement transaction history, which can be analysed in seconds, sending to the lender a credit score and then used to automate most of the decision making.

An unsecured business loan does not require business owners to offer their personal finances as collateral. What this means is, your property, vehicles and equipment don’t need to be offer as security to the lender. Lenders can not take your personal assets automatically if you default on the loan.

Fintech lenders are more agile and fast on making lending decisions with their technology. Banks have a lengthy process and involves several layers of decision makers, and they notorious for offering less than you initially requested. Fintech loans rates and fees can be insignificantly higher, which in the contest of fast access to cash, makes no difference.

Unsecured business loans incur higher interest rates than traditional big bank loans. However, you need to keep in mind the level of high risk attached to an unsecured loan. Business with inconsistent turnover and not trading for long usually pay a little more than an established business.

Absolutely, lenders allow you to pay off your loan early, however, always check before you sign. If you are in a position to pay off the loan earlier than expected, or you want the option to do so wit no penalties, make sure you make this clear to the lender.

Some of the most common eligibility criteria to get approved for a business loan includes:

• At least trading for 6 months.
• Your industry is important, lenders lend to most industries, however some are more favorable than others.
• Your financials matter, lenders rely on what they can see, and bank statements are the most crucial component for making a final decision on your loan and whether you can service the repayments.
• Your credit history and score is normally a reflection of your financial decisions.

And YES! If you are a sole trader or self employed you too can get a business loan.