What is an unsecured business loan?
Unsecured business loans don’t require any security from you or your business. Getting this type of financing, and how much, depends on your business’s monthly revenue and industry.
Unsecured business loans aren’t secured by any type of property, so they carry a bigger risk for finance lenders. They naturally have higher interest rates than secured loans. But they can also offer bigger loan amounts and more flexibility.
If you were taking out a normal business loan through a bank, you would need to offer security – a business or personal asset you could borrow against. Simply means if you couldn’t pay the loan back, the bank could take your asset instead of payment to recoup its loan advanced.
Unsecured business loans can range from $5,000 to more than $300,000 depending on the size of your business and its annual turnover & importantly for higher loan amounts your credit rating ( score).
When enquiring about an unsecured business loan here are the vital things to look out for:
1. Interest rates disclosed – with no surprises
Your new business loan pricing is one of the most decisive factors to consider as many lenders could charge more than most businesses can afford to repay.
Lenders who don’t disclose their rates or give you pricing you can’t understand should be ignored.
Look for a simple, transparent agreement which clearly shows the interest rate that applies to your loan balance, your daily/weekly repayment and standard fees applicable with your loan facility.
2. An approval policy that fits your business cash flow
Work with a fast approval policy which can review your business data and give you a decision in quick-time.
Dealing with an online loan provider who uses smart technology to make decisions allows for fast approval funding process which means you won’t waste time waiting for a decision or cleared funds.
We have made the process for unsecured business loan simple and fast. Apply for an unsecured business loan in minutes, without painful paperwork or waiting in queues. Get approved and start growing your business today.