Unsecured Business Funding

Amount:

Up to $200,000

Term:

4 – 18 Months

Amount:

Up to $200,000

Payment Options:

Daily, Weekly or Semi-Monthly Payments

Amount:

$5,000 – $100,000

Term:

1 – 2 Years

Actual offers vary based on your application information and lender.

Unsecured Business Loans

When researching different kinds of small business loans, you might come across unsecured small business loans. What should you know about this type of loan? Would it be a good fit for your business? We’ve got the basics below and a more in-depth explanation to help you understand unsecured business loans.

The Basics of an Unsecured Small Business Loan

Budget

There is no collateral required.

Back It Up

Your personal credit will be a strong factor in the lending decision.

Equipment

The loan will likely carry a higher APR rate than a secured business loan.

Check for Fees

These loans usually have higher approval rates and faster funding times than a secured business loan.

Borrow

To qualify, you’ll typically need strong business revenue, more than a couple of years of being in operation and good personal credit.

Advantage

What’s the Advantage?

Unsecured small business loans are attractive because they don’t require collateral. That means nothing of value like a business or property title needs to be put up as security to get the agreed-upon funding amount. If the business ends up suffering losses or goes under, the lender can’t claim any assets since there were none signed up in the first place.

Disadvantage

What’s the Disadvantage?

Unsecured business loans tend to have much higher annual percentage rates precisely because there is no collateral involved. It’s a riskier proposition for the lender — there’s no guaranteed way to recoup the funds lent out if the business cannot repay for any reason. The lender may charge higher APR rates as a means to staving off any potential financial loss on his or her part.

What Does the Business Backer Offer?

The Business Backer helps small business customers find the right solution for their business. Our expert Funding Advisors will work with you to find the funding solution for your business' unique needs from expansion to general cashflow management.