Beware of the Wolf in Sheep’s Clothing
One of the biggest nuts to crack when you start a new business is working capital. I’ve been down this road a few times and have learned that seeking a “working capital” loan can be very expensive. It can also do more harm than good—if you’re not careful.
There are many different types of loans. Some are secured (collateralized) and others are unsecured (uncollateralized). Then there are fixed and variable rates, as well as different length terms. In this article, we’ll focus on unsecured debt that’s borrowed for the longest term you can get. If you have no credit or bad credit, that term will be about 9 months.