Sources of Working Capital: Unsecured Business Loans ~ Pinoy Reviews

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Tuesday, April 22, 2008

Sources of Working Capital: Unsecured Business Loans

An entrepreneur’s first hurdle is always working capital. If the entrepreneur is born rich, this would not be a problem however it poses a big hurdle to those middle-class individuals. Another way and probably the most common way is securing Business Loans.

In the Philippines, no bank would lend you money unless it’s secured (you either mortgage real property or personal property), again, this is a problem since not all budding entrepreneurs have their own real property. There are however, some online companies that provide you with unsecured loans like the one linked above. Be aware, that interests would be much higher for unsecured loans but if your credit score is high, your loan would be funded real fast.

When looking for business loans, be sure to compare a lot of companies and look at the interests and not just your monthly amortization. Low monthly amortization does not equal low interests as your payments could be spread out as much as 25 years. It would also be wise to seek the advice of an accountant or someone knowledgeable with the finance.