Unsecured Business Term Loans
Monthly Payments for any credit score
If you need a business loan but don’t have any form of collateral or security to put up, an unsecured business loan is what you need.
An unsecured business loan is especially true for startups and businesses operating well but doesn’t have any assets to offer as collateral, which acts as a barrier for them to qualify for loans.
Thankfully, a few lenders and funding companies do not require any collateral or security to provide financing for your company. They can make a sensible choice for many businesses.
Simply put, an unsecured business loan is from a lender that does not need security from a company or its owner. The applicant’s creditworthiness is the only factor considered in the decision.
Except for funding through credit cards, it is uncommon for a loan to be entirely unsecured.
What Is an Unsecured Business Loan?
There are situations when you don’t have any security to offer, or you’re just seeking no collateral and a lower-risk loan.
Both funding companies and banks offer unsecured loans, also known as signature loans. These loans provide for short-term business expenses like:
- Hiring employees
- Meeting unforeseen costs
- Improving cash flows
- Purchasing equipment
- Business growth
- Marketing campaigns
However, if your business doesn’t have a good credit score, it might be challenging to qualify for an unsecured loan.
Since more and more businesses are built on intangible assets, banks and funding companies have had to become more flexible in offering unsecured loans. Several industries like consulting companies, software businesses, and online marketing agencies likely don’t have any collateral to offer in exchange for loans. But what these financers do ask enterprises for is a personal guarantee.
What Is a Personal Guarantee?
Since the financer trusts you to return their money without keeping any collateral, they require a personal guarantee from the CEO or chairman of the business. While it is a big commitment, the company prefers this agreement since it significantly reduces the loan risk.
In unfortunate circumstances where businesses cannot repay the unsecured loan, the CEO or chairman, whoever has provided a personal guarantee, is responsible for repayment.
Capital 1 Funding is a better alternative to bank loans, because minimal documentation is required and approval is quicker.
With an unsecured business term loan from Capital 1 Funding you can access up to $250,000 in working capital for any business purpose. Banks typically have very strict requirements, require extensive paperwork, and can take weeks (or sometimes even months) to approve. With Capital 1 Funding, we make business lending simple.
What Type Of Business Can Qualify For An Unsecured Loan?
Small Business Owners, Entrepreneurs, Startups, Sole traders, Limited Liability Partnerships, and Limited Companies are just a few types of businesses that can qualify for an unsecured loan. Depending on the lender, different eligibility criteria will have other points regarding qualification. As was noted earlier, guarantees might be necessary, and you’ll need to meet the lender’s requirements for the minimum yearly turnover.
Since no collateral is involved in business loans, the entire procedure becomes more straightforward and risk-free, which is the primary benefit of unsecured loans.
For Small Business Owners and Entrepreneurs, Capital 1 Funding offers business term loans with monthly payments and flexible requirements.
Let our unsecured business loans help your business grow. Whether you’re looking to expand, purchase inventory, hire more employees, or refinance existing debt, a Capital 1 Funding business term loan is an excellent solution.
Our term loan program is eligible for any business, with early payment discounts.
Within a few minutes, you can be pre-approved and gain access to your funds in as little as 48 hours!