What Is A Bedriftslån Without Collateral, Can You Get It & What For?

You’ve either started a business or you’re thinking of doing it in the nearest future, because you have a great idea and you’re ready to work for it. Being ready to work for it is, however, not enough. You need to have the necessary funds as well, since starting a company without having any money to invest in it is certainly not the smartest thing to do. In case you haven’t saved up enough money, and people never do as that’s extremely difficult and time consuming, you’ll need to resort to a different funding option.

In short, you’ll have to start working with a lender and get a loan to fund your business endeavors. This is the most common financing option people go for, because it’s convenient and it provides for a great financial boost. You must have thought of doing it as well, which is why you’ve researched the loan options and opportunities you can grab. At one point in the research, you’ve come across the bedriftslån, i.e. the business loan, without collateral.

Coming across this opportunity has made you wonder a few things. What exactly is a business loan without collateral, can you get it and how to get it if the answer to the previous question is yes, and what can you even use it for? Those questions that are swirling around your mind are certainly important, and getting the answers is essential if you want to be sure you’re doing the best thing for your business, and using the right financing solution. So, let’s answer them for you.

What Is A Bedriftslån Without Collateral?

A business loan is, as the name says it, a loan intended to be used for business purposes. You take it out at one point and essentially create a debt that you promise to repay in monthly installments over a certain period of time. That’s how all loans function, so it’s not very different from what you’re used to if you’ve borrowed money from financial institutions in the past. What does it mean, though, if the loan is given without collateral?

A business loan without collateral, i.e. a bedriftslån uten sikkerhet, is the one you can get and use for your company, while not having to offer anything as security to the lender. There are secured and unsecured loans, with the unsecured ones being those that are without collateral, i.e. that don’t require any assets to be provided as security. So, the unsecured one is essentially a consumer loan you’ll get to your name and then use it for your company. The fact that no collateral is involved makes this option appealing to borrowers, as it is less risky. 

Can You Get It?

Since this is the less risky option for borrowers, it automatically means that it’s riskier for the lenders. Thus, you’re now wondering if you can actually get the bedriftslån uten sikkerhet, or if this is something that the lenders you’ll approach will say no to. Well, since these types of loans do exist, it is perfectly logical to assume that someone can get them, and you may just be that someone, provided that you meet some significant criteria.

I’ve explained that this is essentially a consumer loan without collateral, so you’ll be getting it to your name, and your name is what will be checked in the process of approving or rejecting your application. You’ll be checked for citizenship or residence, as well as income and, of course, credit score. The credit score plays the crucial role here, since lenders aren’t willing to offer the unsecured option to those individuals who have extremely poor scores, thus proving that they aren’t reliable and trusted payers, and that banks should better avoid them.

Here’s what this means for you. If you want to get the bedriftslån without security, you’ll need to take good note of your credit score and do your best to improve it if at all possible. The better this score is, the higher your chances of being approved for this loan. There is, however, one more reason why improving the score goes in your favor, and it is directly connected to the interest rates offered by the banks.

Basically, while some banks may be ready to offer you the unsecured business loan even if you don’t really have a good credit score, they’ll do that at higher interest rates. If you stabilize the score and get it to a good level, you’ll have the opportunity to secure lower interest rates. And, since interest rates impact the overall cost of your bedriftslån, you’ll certainly be happier with lower ones.

How To Get It?

After reading the above, you’ll have a clearer idea on whether getting a business loan without collateral is right for you, as well as on your eligibility for it. If you’ve decided to give it a go, you’ll have to take the right steps towards getting it, and you can read about those here. Begin by finding various lenders and checking out their offers, while constantly doing comparisons of their interest rates and other borrowing terms. After you’ve had time to compare everything, decide on the lender you wish to work with and file your application, together with all the documents they’ll require to perform their checks. Once that’s done, you’ll simply have to wait to be approved.

As it should be clear, the top priority here is to find the most amazing lender, which is exactly why you should be checking out various ones and doing those comparisons. Apart from comparing their rates and terms, I’d advise you to also check their reputation, track record and the opinions of their previous clients, as that will tell you of the quality of service you should expect. Doing that will also help you avoid scams and lead you towards getting the perfect service, which is absolutely what you want.

What Can You Use It For?

If you’re still not clear on what you can use this loan for, here’s what you should know. It all depends on the type of business you’re running, or want to run, because different companies will need to fund different things. You can buy equipment, purchase a company car, get equity, or do something else business-related with the money. Remember that this purpose can dictate the actual type of loan you want to get, meaning that thinking about it before filing any applications whatsoever is quite important. Anyway, you’ll be using this loan to boost your business, so decide on the type of boost it needs.