Getting a loan can help boost your business, a lot of big companies get loan to boost their business. This happens sometimes when a company needs urgent funds to run their business and they have assets worth more than the funds they need, you don’t expect them to sell their assets so as to fund business, the best thing to do is get loan from banks. Getting a loan is good if used properly but if not used properly it can really be bad and kill business.


Getting loan from bank without collateral is possible, a lot of people might not believe this but it is actually possible. I know that even after hearing about this some people will still doubt.
One thing you should know is if you are requesting for loan without collateral, the funds you want to access will be limited. Let me go further to explain this, some banks will tell you they can give you 2 million without collateral but if you intend to do above 2 million that means you’ll need collateral. All banks have a limit to which they can deal if you don’t have collateral, so it’s left for you to find out.


You will also need to build a business relationship with bank. Imagine you meeting someone for the first time and that person want to borrow money from you, that transaction won’t sound comfortable to you. But if it’s someone you’ve met for over two months, you’ll be more comfortable dealing with the person. Same thing goes for banks too, they feel more comfortable dealing with customers they’ve built relationship with over a period of time, so your duty is to get close to your relationship officer as most banks will attach one to you. Don’t wait for them to get close to you; you can also make the move because building relationships is a two way thing that involves all parties involved.

A lot of people walk into banks and request that they want a business loan when they don’t even have a business structure yet. No bank will be willing to deal with a business that’s not yet define, it’s like gambling with your money and you have a high chance of losing it.

Another thing most banks check is your statement of account. You may wonder why they are doing this; the concept behind this is to see how much you use to run your business monthly. Another thing that can be used is daily sales record of the business but most banks don’t go this way because most people can falsify their sales record just to impress the bank. That’s why a bank statement works more as it is more reliable and accurate.


Your character also matters when you want to get loan from banks. There are some things you will do that might make banks not to give you loan. An example is not being trustworthy, you might think they won’t detect but your character will definitely show. For instance if you give cheques to your customers to present and your account is not funded, it will show in your account and if this keeps happening continuously, it sends a bad signal to the bank or when you tell your bank your place got burnt and they come over only to discover you were lying to them. Issues like this can make banks not to give you loan.

Also the type of business you do matter. Banks don’t support all types of business. They avoid business they see as being risky so as not to lose their money. Different banks have theirs, so it’s advisable you confirm from your bank to know the business they don’t fund.

Getting loan from banks without collateral is really possible, some companies have been enjoying this but you won’t know. Get wise today and make enquiries at your bank to know the requirements so that you won’t be left out.

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