Unsecured business lending is an ideal solution for businesses needing fast funding without risking their assets. These loans offer fixed monthly payments over a certain period of time and typically come with low fees.
Finding the ideal unsecured business loan depends on your individual needs and budget. Before making a decision, take into account your personal credit score and debt-to-income ratio; speak with one of our bankers about which borrowing option works best for you.
No Collateral Required
Entrepreneurs understand how difficult it can be to secure funding for their company’s needs. Whether they need to buy equipment, hire more employees or cover other ongoing costs, finding the financing necessary for success can seem impossible.
Unsecured business loans can be an ideal solution for startups or those without valuable assets, though they tend to be more challenging to acquire and often come with higher interest rates than secured alternatives.
To reduce this risk, lenders assess borrowers’ financial history and trading activities to assess their capacity to repay a loan. This evaluation typically involves conducting a personal credit check.
Faster Funding Process
Businesses that struggle to secure traditional loans due to lack of business history, low credit score or insufficient assets may find unsecured business lending an alternative solution. This type of funding provides fast access to capital without needing collateral – something which can take time and pose risks for lenders.
Faster funding processes for unsecured business loans can be a significant advantage to businesses that require extra funds to stay current on expenses or make growth investments. Lenders specializing in fast funding prioritize speed and disbursement so cash is disbursed quickly after approval.
Fast business financing options exist, such as SBA loans, term loans, lines of credit and equipment financing. Funding speeds differ based on lender, loan type and borrower qualifications so be sure to shop around for a solution that fits within your timeline and budget. Furthermore, compare interest rates and fees so you’re getting the most value for your money.
No Credit Checks
When it comes to unsecured business lending, some lenders don’t require credit checks at all. Instead, they use alternative methods like your employment history or bank account balance as criteria for determining eligibility.
No credit check loans can be an ideal solution for small businesses with bad or no credit. Plus, these loans have the potential to build your business credit if you make timely payments.
However, failure to pay your loan off on time can have a negative impact on your credit score. Thus, these loans may not be suitable for every business owner.
Other options for invoice financing include Square, PayPal Working Capital and Payability. These companies provide quick and effortless funding for ecommerce sellers, payment processors and other businesses with invoices.
Low Credit Requirements
If your business requires cash but you don’t want to use personal assets as collateral, unsecured financing is an ideal solution. Unsecured funding is available from various sources such as traditional banks and credit unions.
Traditional banks typically require borrowers to have good or excellent credit in order to be approved for loans. However, many online lenders may provide small business loans even to those with lower credit scores.
These lenders typically charge higher interest rates and require frequent (daily or weekly) repayments than traditional bank loans. Furthermore, they often charge late fees and check processing fees.
SmartBiz is an online marketplace that connects businesses to 75+ lenders for funding. The application process is straightforward and speedy, meaning borrowers may get funded quickly. The only downside to it is the 2% referral fee and packaging fee if approved; however, for those needing a speedy way to apply for an SBA loan, SmartBiz may be worth considering as an investment.