Small businesses often face numerous challenges when securing financing for growth and operational needs. Traditional lending practices often demand extensive collateral and rigid criteria, making it difficult for small businesses to access the required capital.
Unsecured loans provide a unique flexibility level often lacking in traditional financing options. Small businesses can obtain these loans without having to pledge assets or provide collateral. This accessibility levels the playing field, allowing entrepreneurs with limited resources or new ventures to access much-needed capital.
Unlike traditional loan applications that involve extensive paperwork and lengthy approval processes, unsecured loans offer a streamlined and expedited process. With fewer bureaucratic hurdles, small businesses can receive funds quickly, allowing them to seize time-sensitive opportunities, invest in growth initiatives, or address unexpected financial challenges. The speed at which unsecured loans are disbursed enhances business agility, enabling small enterprises to adapt and respond swiftly to market changes.
One of the most significant advantages of unsecured loans is that they do not require the business owner to surrender ownership or dilute equity. Entrepreneurs retain complete control over their enterprises and maintain the ability to make independent decisions. This freedom is invaluable for small businesses, allowing them to preserve their vision and execute strategies without external interference. Unsecured loans thus empower entrepreneurs to grow their businesses on their terms, safeguarding their independence and long-term sustainability.
For small businesses still establishing their credit history or have faced financial setbacks, unsecured loans can be a valuable tool to build or rebuild creditworthiness. In managing and repaying unsecured loans, small businesses demonstrate their ability to meet financial obligations, improving their credit profiles and opening doors to more favourable financing options. This positive cycle of credit-building nurtures business growth and paves the way for increased access to capital down the line.
Lenders often back unsecured loans with a vested interest in supporting small businesses. As a result, these loans can foster a spirit of innovation and entrepreneurship. Lenders specialising in unsecured lending typically understand the unique needs and challenges faced by small businesses and are more willing to take calculated risks on promising ventures.
An institution that gives an SME an unsecured loan means it trusts the SME. It is a risk that few are always willing to take. Stanbic Bank Kenya is such a risk-taker. The lender has one of the best-unsecured loans in Kenya. The minimum Loan amount that Stanbic gives unsecured is 100,000 shillings with a maximum loan amount of 10 million shillings; under supply chain financing, unsecured loans of up to 100 million are offered.
What is more, the maximum loan term is 36 months with an option of one topping up their loan after six months of repaying it. There is also credit life insurance on all loans, and all loans get approval within 48 hours after we get all your supporting documents. Customers who have banked with Stanbic Bank for at least six months can access digital loans of up to 3 million shillings on the Stanbic APP or through USDD.