When a business is in need of cash for any reason, such as to cover unexpected expenses or grow and expand the business, an unsecured business loan is one way that the business can pay for those costs. This type of unsecured loan has the same basic features as a secured business loan. The main difference between unsecured business loans and other loans lies in the qualifying factors.
For a secured business loan, the business owner is required to put up some collateral in order to secure the loan. As a result of the collateral requirement, interest rates on secured business loans are usually lower than the unsecured loans. The business owner is also required to submit a detailed business plan along with the application for the secured business loan.
These requirements are completely different for unsecured business loans. In fact, the business owner is not required to submit a detailed business plan for the unsecured loan. However, the business does need to have been established for at least two years. Additionally, nothing is required for collateral, but that does mean that the interest rate will be higher for the unsecured loan. Repayment terms are usually similar to those of other loans.
Applying for a unsecured loan is just as easy as a secured loan, especially since you can get preapproval right here on the Unsecured Business Loan website. Loans are available in amounts as low as $50,000. To ensure a successful loan application, it is beneficial if the business owner has a minimum credit score of 680 and no negative entries on the credit report.
To apply for funding for your small business, use the form on the right to begin the application process.