Unsecured Business Funding


$20,000 – $350,000


1 – 4 Years


Up to $200,000

Payment Options:

Daily, Weekly or Semi-Monthly Payments


$5,000 – $150,000


1 – 3 Years


85% – 95% of Invoice Value

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


There is no collateral required.

Back It Up

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


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.


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


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.


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 is your one-stop shop for funding. We help small business customers find the right solution for their business, whether it’s an SBA loan, invoice factoring or line of credit. You can trust that our expert Funding Advisors will assess your needs and work with you to find the right financial solution for your business.

We also offer a range of in-house options with unique benefits, developed for the small business that needs ongoing access to capital for expansion, remodeling, inventory and general cashflow management.