Business loans are loans given to individuals and firms to be used solely for the operation and sustenance of their business. Similar to personal loans, they can be secured or unsecured. Financial institutions typically would want to know the specifics of what you intend to do with the money. This guides them to offer you a more personalized form of business financing like overdraft or asset finance among many others
- Contact details (personal and business)
- Copy of ID/Passport
- Copy of Cert. of Incorporation
- Income statements for the business
- Prefilled loan forms available at the bank
Benefits and more on business loans
Business loans allow you to continue your operations by making sure you have enough funds to cover both maturing short-term debt and future operational expenses. They give you financing without security and facilitate your sales on an open account basis.
Business loans are usually borrowed when one needs to expand a business that has had a good credit worthiness and assets as lenders will always ask for collateral. However, this is not the case for microcredit loans.