Business Loan Preparation for the Unemployed
Business loans are generally only granted to those who are actively employed. However, in recent times and more because of the economic recession experienced by the world last year, some economic stimulus packages include providing loans to those who are unemployed. So, if you are unemployed, learn to apply for a small business loan:
Look for a bank, a loan company or a financial company that offers loans to the unemployed. Not all banks can offer this service, so be sure to do a thorough analysis of financial institutions in the region.
Because the person who plans to owe the money is unemployed, the financial institutions need some guarantee that the loaned amount will be paid by the borrower. Here, the guarantees are necessary. Among the most common are property certificates, property certificates, cars, appliances and jewelery.
In some regions, financial institutions do not require collateral. Instead, they seek to become an active partner in the intended business to which the business loan is intended. This configuration typically takes the form of participation in the planning phase and a representative to directly monitor the progress of the business.
Another requirement imposed by some financial institutions is the prior completion of a feasibility study. Although it means spending even before the business starts, financial institutions do it to ensure that the planned business has a good chance of surviving. That’s why some business loans include the planned expenses for the study.
Sources of business loans
Although financial institutions are the common source of business loans, some local governments offer this type of loan to their residents. However, the type of business is usually determined by the type of social service that the government wants to benefit its citizens. For example, in areas where tourism is booming, business loans are a priority for those wishing to enter the hotel, catering and tourism sectors.
Regardless of the source of the commercial loan, it is common for the source of funds to be regularly informed of the performance of the loan. Compared to other types of loans, let us assume that payday loans, business loans or their financing, especially for the unemployed, require regular reporting. This is to help the lender monitor the performance of the loan and give advice to the borrower if necessary.