What Is a Bedriftslån, Can You Get an Unsecured One, Should You & How?

Have the perfect business idea? Well, that is step number one towards actually establishing a company that will find its place on the market. Realization is step number two, and in order to do it right, you will need to create the perfect business plan and do some rather hard work so as to make everything happen. It won’t be an easy journey, but it will definitely be a journey you will enjoy, especially if you start seeing great results from the effort you’re putting into all of it.

What is that one ingredient that you can’t lack when trying to turn the idea into reality? Sure, the willingness to do hard work is high on the list, but it will all be in vain if you don’t have one concrete factor. What I am referring to, of course, is the money. If you don’t have the money to get things started, then, guess what? You won’t get things started.

The same goes if you have already been running your business for a while and are now looking to expand or to meet any other types of needs that your company may have. Without a good budget, you’ll simply continue dreaming about it, without ever being able to make any of those dreams come true. Doesn’t sound very promising, does it? Well, that’s just the way the world works.

You already understand how the world works, though, so the idea of needing money is not at all surprising. Before you give up on your ideas because you don’t have cash, however, you will want to check if there are some other types of financing solutions you can use to your advantage. That is when you will find out about a concept known as a business loan, further explained on this page.

Finding out about that concept will only raise further questions for you. What exactly is a business loan? Is there a possibility of getting an unsecured one, or do you have to offer collateral in the process? If yes, should you even consider that possibility, or is it something to avoid? And, lastly, if you should consider it, then what are the steps to take towards getting the right solution?

Quite a lot of questions. The great thing is that you will get your answers if you decide to read on. Understanding how all of this works and getting answers to everything will help you get a clearer idea on what your next steps should be, which is certainly of crucial importance. So, if you’re ready to get your facts straight on everything, you’ll be glad to hear that I’ll answer the questions for you below, hoping to give you a better idea on the possibility of getting a bedriftslån, as well as on the process of doing so in the first place.

What Is a Business Loan?

We can’t proceed towards answering those more concrete questions if you have no idea about the general concept of a business loan to begin with. Basically, a business loan is that loan you take out so as to buy for your business expenses, including equipment purchases, operating expenses, market expansion or any other expenses you may have in the course of your operation. People often get these when they are looking to start a company and lack the money to do so. In short, they use them to turn their business ideas into reality.

Usually, the business loans differ from personal loans in a few aspects. One of the things that is different is the fact that you will often be required to provide some collateral when getting a business loan. In other words, you will have to offer some of your assets as security to the lender that you will actually repay the money you are borrowing. And, if you don’t repay it, they will have the right to seize those assets from you. This is essentially known as secured borrowing.

Can You Get an Unsecured Loan for Your Business?

Where there is secured, there is also unsecured borrowing. It consists of you getting the money you need without having to offer any of those assets as collateral, and it is often the safer option for borrowers, although a bit riskier for the lenders. You may have already heard about unsecured borrowing in terms of personal loans, but you are now wondering if getting this solution is even possible when it comes to business loans. Definitely an important question too, and one that you’ll get your answer to if you visit www.forbrukslån.no/bedriftslån/ or similar useful sources. Plus, I’ll also provide you with the answer right now.

To cut right to the chase, getting an unsecured loan for your business is certainly a possibility. This will, however, essentially mean that you are getting an unsecured consumer loan in your personal name and then using it to cover those business expenses that you have. So, if you understand how unsecured borrowing works in general, you will also understand how it works when you are looking to get financing for your company.

What you should remember here is that, even though this is a possibility, not all lenders will be willing to provide you with the unsecured option. This, of course, depends on your specific financial situation as well, and on your credit score for that matter. We will cover this part in more details when we start talking about the actual process of getting this type of a loan, but the point here is that not all of the lenders you’ll come across will offer this opportunity, so you will have to be careful in the choosing process.

Should You Use the Unsecured Solution?

Before we get to the part of actually obtaining this type of funding, you want to get your answer to another important question. Sure, you understand that getting an unsecured loan and using it to cover your business expenses is possible, but what you are now wondering is whether that is a solution you should even consider using. Why would you have any second thoughts in the first place, though? Let me explain.

People usually have second thoughts about this solution due to the clear disadvantage that comes with it, so you are most likely worried about the same thing as well. The disadvantage lies in the fact that the interest rates are bound to be a bit higher when the unsecured option is in question. Why is this so, though? That should be perfectly logical, but let’s make it clear anyway.

Basically, when lenders extend unsecured loans, they are entering into higher risks, given that there is no collateral involved. Because they are assuming higher risks, they are also bound to find ways to protect themselves better, and they do that by offering higher interest rates, as well as by performing extensive credit checks. The borrowers, on the other hand, don’t like the idea of those higher interest rates, although they do understand the necessity of having them.

Even though it is completely normal not to be happy about those higher interest rates, here is the thing. When getting a business loan, and when you don’t want to risk your assets in the process, this is the only solution you will have. And, when you think about it more carefully, you’ll realize that the fact there is no collateral is quite beneficial for you as a borrower. Lower risks are associated with your borrowing process, and those higher interest rates are but a small price to pay for that. Plus, the fact that there are numerous lenders out there offering this solution further means that you will actually get to find reasonable interest rates, even though they will be slightly higher than those you’d get on the unsecured option.

How to Do It?

If you’ve made your ultimate decision, now is the time to learn how to actually go through the entire process and how to, thus, get the right unsecured loan for your business. If you have been paying attention, then you know that your credit score plays a crucial role here. The better it is, the higher your chances not only of getting approved for the borrowing solution, but also of getting reasonable interest rates. Working on the score should, therefore, be your first step – one you should take before applying for any of these solutions. Pay any debts that could be driving the score down, cancel any unnecessary subscriptions and remember to check the report for mistakes that could be affecting the score negatively, and then fix those.

Your credit score is ingredient number one, so to speak. Lenders are ingredient number two. So, the next thing you will have to focus on is finding the right lender that will offer you the perfect borrowing solution. Your task is not only to find those that offer the unsecured option, but also those that offer reasonable borrowing terms and thus an overall satisfactory borrowing experience. The Internet will help you in the research, especially since there are websites you can use to do the comparisons easily.

What should you compare, though? Interest rates for one thing. Then, there are also other unsecured loan terms to check, including other types of fees, as well as the offered repayment periods, and the minimum and maximum borrowing amounts. Once you check and compare all of those terms, after having found reliable lenders, you will be ready to choose the perfect solution for you and apply for it. After you get approved, you’ll be free to use the money for any of your business needs.