Authored by Phil Cohen
An unsecured business loan is a no-hassle solution to business funding. Even if you do not have enough assets to qualify for a traditional secured loan, you can still qualify for unsecured business financing. Funding for an unsecured business loan may come in the form of credit cards or direct advances, depending on the unique needs of your business. This blog provides answers for some of the most frequently asked questions regarding unsecured business loans.
What Makes Unsecured Business Loans Different?
The main difference between a secured business loan and an unsecured business loan is that an unsecured loan is not backed by collateral. Where a secured business loan would require collateral, such as cash or your equipment, an unsecured loan allows the borrower to secure the loan without other assets. Interest rates can be higher for unsecured loans, but that can be offset by applying for a longer-term loan. If you need working capital, but do not have enough collateral for a secured loan, an unsecured loan may be right for you. Factor Finders has many different business loan programs to align with the needs of your company.
Why Choose an Unsecured Business Loan?
The term “unsecured” can seem daunting, but it is actually in reference to your loan not being backed by any sort of collateral. Student loans and credit cards are forms of unsecured loans, so there is a good chance you have already have experience with unsecured loans. Secured loans are easier to obtain, but not everyone can quality. Not only are unsecured loans more accessible, but financing can be obtained in as little as 48 hours after the paperwork is submitted. With an unsecured business loan, you can use the funds to continue your day-to-day production or grow your business, even if you are waiting on customers to pay their outstanding invoices. Unsecured loans are one-time funding instead of an ongoing line of credit and there is unlimited funding potential as your sales increase.
Reach Out to Factor Finders
Factor Finders can connect you with a lender for an unsecured business loan. Contact us today for more information. We will be in touch within minutes to start matching you with a lender.