SC Capital Access

Private Loans

Small business owners might struggle with securing a loan if they have limited assets and low credit scores. For a brick-and-mortar banking institution, small businesses are high-risk investments and would likely disqualify them from taking out loans. Online lenders are available to remake the markets for financing small businesses.

Private loans are granted for business or commercial use from lenders who are just startups that are backed by venture capitals. Such loans can be advanced on the basis of the borrower's credit-history and ability to repay the loan from personal income.

Repayment is usually through fixed amount installments over a fixed term. However, the criteria for eligibility and repayment may vary according to the lender's guidelines. An unsecured business loan can be approved with little or no collateral. In addition, the application consists of far less paperwork than a traditional bank loan, and the approval process can take only a couple hours.