Lower interest rates offered to small businesses through secured loans

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A small business loan can be a great way to inject cash into a business to support growth and take advantage of new opportunities. However, with many small businesses having cash flow constraints, an attractive low rate secured business loan is often a popular solution.

MELBOURNE, AUSTRALIA / ACCESSWIRE / MAY 6, 2021 / A secured business loan is a business financing product that uses an asset that the business owns as collateral against money borrowed. A number of alternative lenders, such as Australia’s leading non-bank lender Liberty Financial, now offer a good alternative to traditional banks.

Secured business loans generally offer lower interest rates and the ability to borrow a larger amount of money, compared to unsecured business loans. The eligibility criteria for a secured business loan will vary from lender to lender and will likely depend on how much a business wishes to borrow. He will need to own an appropriate asset (or assets) to provide sufficient security for the amount he wishes to borrow.

Residential and commercial properties are commonly used as collateral, but depending on the size and value of the business, some lenders may be willing to accept a charge on the business as security for the loan. Some lenders will also require the borrower to provide business and personal collateral when obtaining a secured business loan.

The first step in applying for a secured business loan is finding a lender who understands the needs of the business and can provide a loan against their assets at a competitive interest rate. Some lenders are more flexible than others and will offer secured business loans for longer loan terms or as lines of credit with flexible repayment terms. Through its specialized credit scoring practices, Liberty can also help business owners with lower credit scores qualify for secured business loans.

For owners of small businesses of all sizes, discussing the financial situation with an accountant or financial advisor can be a smart first step. Discussing business projections and any contingency plans for a market downturn can provide added comfort when committing to a new financial commitment.

Exploring the small business loans available from Liberty could provide a business with the support it needs to grow.

Approved applicants only. Loan criteria apply. Taxes and fees are payable. Liberty Financial Pty Ltd ACN 077 248 983 and Secure Funding Pty Ltd ABN 25 081 982 872 Australian Credit License 388133, operating together as Liberty Financial.

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THE SOURCE: Freedom Financial

See the source version on accesswire.com:
https://www.accesswire.com/645081/Lower-Interest-Rates-Available-to-Small-Businesses-Through-Secured-Loans


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