Startup Business Loans without Collateral

Launching your own business is no piece of cake. There are 101 things you need to look after, both before and after the setup. Let’s assume you do make up your mind to have your own startup in place. Now, the very first hurdle you’re most likely to encounter is arranging finances for the same. Considering that you’re just starting out, applying for a bank loan may be the wisest option to consider.

But what if the bank asks for collateral or security against agreeing to offer you a loan? Are you really willing to or rather in a position to offer a valuable asset as collateral against taking the loan? That’s a critical question to ask yourself before you tread this road.

Don’t Worry! You Can Opt for Startup Business Loan without Collateral

The good news is that you can keep your worries aside and go ahead with seeking a loan for your startup business without the need to offer collateral. To be honest, a business startup loan without collateral is offered quite rarely. Most banks and financial institutions demand security against loans in the form of a valuable asset. This could be anything from property, a piece of equipment, or even your savings account.

This security or collateral authorises the bank or financial lender to freeze your assets and take possession of them in case you are unable to repay the loan for some reason. In this case, the bank too doesn’t lose everything since they get possession of your collateral against the amount they lent you.

Collateral-Free Loan Options for your Startup Business

There are some lenders that do understand that you may not always have collateral to offer as security while applying for a business loan. Therefore, you can choose among the following options and make your business dream come true.

1. Unsecured business line of credit

This is one of the best ways to start your business without collateral obligation. You can look up a couple of lending agencies online that are willing to provide quick, flexible, and revolving capital as and when needed. And that too without needing you to pledge any collateral against the debt.

2. Merchant cash advances

Also known as cash advance loan, this is another of the convenient methods to raise quick and easy finance for your startup. Under this arrangement, the lender company agrees to pay you a lump sum amount to help start your business. In turn, you are required to allow the company a specific share in the daily credit card sales of your business.

Note: This is currently one of the costliest financing methods in the market.

Business credit cards – Another of the best business financing options available for startups like you. This is perfect when you need just a small amount of capital loan to kick start things in the initial stage of your business.

Summing Up

When you’re just starting out for the first time, it’s best to borrow less and collateral free. Try these simple financing options to move ahead.

Artificial Intelligence for Cloud-based Internet of Things (IoT)

Artificial Intelligence (AI) and Internet of Things (IoT) are both boons of technological advancements in recent years. Both have made human life easier and convenient than before. While IoT can generate unimaginable amounts of data in no time, AI has made machines work almost like humans by making them capable of learning, recognising, and understanding.

Now imagine if these two boons can be brought together to create some inconceivable wonders? The fact is they have indeed been used together to create some state-of-the-art examples of using technology for utmost human convenience.

IoT for Smart Living

Until about a few years ago, who would’ve thought that smartphones and smart devices could be a living reality? It all became possible with IoT which made it possible for two or more devices to connect with each other and transfer data over the Internet. And then came the Cloud Computing technology which could leverage IoT to generate huge amounts of data from several user databases over the Internet.

More and more companies came to realise the need to collect user data – what they’re browsing, what they’re looking for online, their needs, tastes, preferences, etc., so that they could come forward with providing exact solutions to these. So basically creating a win-win situation for both the customer and the service provider by bridging the demand-supply gap.

AI for Better Customer Experience

Many look at AI as just a few steps away from replacing human intelligence. While that still remains to be seen, the contribution of AI in making lives simpler, smarter, and better definitely deserves applause. Voice recognition (Amazon Echo aka Alexa), GPS tracking stores to facilitate home delivery, and by cab services to reach us in no time are all AI-bestowed blessings.

AI + IoT = Perfect Combination

Now that we know the individual benefits of these two technologies, let’s take a look at what happens when they come together. To begin with, AI can be used to effectively assess the large proportion of data computed through Cloud-based Internet of Things. This integration has already been tried in a few cases already, listed below:

1. Amazon Shopping

Wonder how Amazon service provider is able to suggest recommendations for your shopping activity each time you log on to the app? It’s all through AI and IoT combination. IoT helps amass large data of all Amazon users and AI works on making sense out of it – understanding user behaviour and preferences based on previous shopping experience on its app.

2. ET City Brain

This amazing machine-learning model based on Cloud-based Internet of Things has been applied in Hangzhou, China, where it’s helped reduce car traffic by almost 15%. The system works by using data from cameras installed on traffic lights across the city and the AI platform suggests how lights should be changed to facilitate smoother traffic movement and lesser accidents.

Conclusion

Artificial Intelligence and Cloud-based Internet of Things (IoT) can be a deadly combination to provide remarkable solutions for the benefit of mankind.