Whether you’re just launching your small business or looking for a financial solution for your growing business, there are many options to choose from. If your income, credit score or other factors are disqualifying you from traditional bank loans, here are some advantages of choosing stated income loans for your financial needs.
These loans are designed to offer you the flexibility you need. If you don’t have the necessary financial history or credit score, a stated loan provides you with the funding you need. Typically, these loans are used to purchase a valuable property. Because the property has value, you can receive the funding you need. Your loan uses your property as collateral. In the event that you are unable to pay back the loan, your lender will collect using the property itself.
While this may seem like an added risk to you, stated income loans give you a chance to secure a property that you might otherwise not be able to afford or receive financing for. Traditional bank loans rely far more on your personal or business credit and financial history. A few unsuccessful investments or a defaulted loan in the past may severely limit your options, making a stated loan an excellent choice.
Because you don’t have to worry about a credit check, you can typically complete the application and receive word on an accelerated time table. These loans require less time to determine approval, giving you more flexibility to take out a loan in a short window of opportunity.
A conventional bank loan uses algorithms and formulas to determine whether you’re qualified and how you need to spend your loan. However, a stated loan allows you to take out your loan and use it as you wish. This level of flexibility, of course, comes at a price. Income loans usually have a higher interest rate than conventional alternatives. The additional trust and risks associated with your application require your lender to increase the interest rate to provide this service. You’ll have to carefully weigh the interest rate and monthly payments to determine whether you can afford this type of loan.
Find out today if stated income loans are right for you. If you’re struggling to receive your financing or your business feels stagnant, it’s an excellent financial option to give you access to the funding you need. Grow your business and make essential purchases with this dynamic financial option.