Top unsecured business loans.
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What is an unsecured business loan?
Pros and cons of unsecured business loans.
- No collateral required: Lower risk to personal or business assets.
- Faster approval: Quicker funding compared to secured loans.
- Flexible use: Funds can be used for a variety of business needs.
Cons of unsecured business loans:
- Higher interest rates: Compensates for the lack of collateral.
- Stricter credit requirements: May be harder to qualify for some businesses.
- Shorter terms: Typically have shorter repayment periods.
Top unsecured business loans.
Headway Capital – Line of Credit
Idea Financial – Line of Credit
Gillman-Bagley – Invoice Factoring
OnDeck – Revenue-Based Financing
Funding Circle – Term Loan
BHG Financial – Term Loan
Types of unsecured business loans.
SBA Microloan
This program offers small unsecured loans of up to $50,000, making it an excellent choice for startups seeking initial funding.
SBA 7(a) Loan under $50k
The SBA doesn’t require collateral for an SBA 7(a) loan under $50K.
Unsecured line of credit
A flexible funding solution akin to a credit card, allowing businesses to draw on funds as needed without collateral.
Invoice factoring
A method to obtain immediate cash by selling unpaid invoices, offering a quick solution to improve cash flow.
Revenue-Based Financing
This financing option allows businesses to receive an advance on future sales, which is repaid through daily revenue.
Minimum requirements for an unsecured business loan.
*Qualification criteria, rates, and other funding terms will vary depending on the type and location of your business, and upon other factors. This is not a guarantee of funding, and it should not be relied upon as an accurate assessment of the availability or terms of the represented funding products.
How much can I qualify for?
Not sure what you need or what funding options are best for you? Use our simple calculator to get a rough idea of your options with no commitment, and apply when you’re ready.
Four simple steps to funding.
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FAQs
Find answers to some commonly asked questions about unsecured business loans.
When it comes to securing a loan, there are several options that lenders may require:
- Collateral: A tangible asset used as security for the loan.
- Blanket lien: A legal claim on all business assets in case of default.
- Personal guarantee: The borrower’s personal assets serve as collateral for the loan.
While unsecured loans do not require collateral, lenders may still take out a blanket lien on business assets or require a personal guarantee to mitigate their risk. It is essential to carefully consider these terms and evaluate the potential impact they could have on your business before accepting an unsecured loan offer.
To successfully navigate the funding process, follow these essential steps:
- Assess your needs: Identify the amount of funding required and its intended purpose.
- Check your credit score: Verify that you meet the minimum criteria set by your selected lender.
- Collect necessary documents: Including financial statements, a detailed business plan, and your most recent tax returns.
- Apply: Complete the application process and submit the required documents.
- Review offers: Compare offers from multiple lenders to determine the best fit for your business needs.
- Select lender: Once you’ve found a suitable lender, accept their offer and begin the funding process.
- Repay loan: Make regular payments as agreed upon with the lender to ensure good standing and maintain a positive credit score for future financing needs.
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