What is an Unsecured Business Loan?
An unsecured business loan is a monetary loan paid out to a company or consumer. Unlike traditional secured loans, unsecured business financing allows businesses to qualify without securing the loan with other assets. Unsecured lenders may make funds available in a number of different ways, including credit cards and direct advances, depending on the company’s needs.
Introducing the No-Hassle Business Funding Solution
If you need a fast infusion of working capital for your company but lack sufficient collateral to qualify for traditional lending, an unsecured business loan is the solution you need. Factor Finders has a variety of business loan programs to fit your company’s changing needs.
Qualified borrowers can borrow up to 90 percent of their gross monthly sales to revitalize their cash flow, even if their equipment or other assets are already guaranteed as collateral to other institutions. Interest rates for unsecured business financing are somewhat higher than their secured loan counterparts due to the lender’s added risk, but companies may offset that risk by applying for a longer-term loan.
It’s easy to qualify. Complete the form below to get started.
What Types of Businesses Can Qualify For Unsecured Business Loans?
Nearly any established business in any industry can qualify for unsecured business funding. The added advantage of working with Factor Finders is that we are able to secure funding for companies with poor or little business credit, either due to financial difficulty or because a business is just starting up.
Decisions for unsecured financing are based on the calculated risk that your business presents. Your credit line may increase as your credit situation improves. As a reminder, businesses with secured assets may still qualify for an unsecured business loan. Revolving lines are also available through some lenders.
Not sure what type of funding will suit your business the best? Contact us to learn more about our services. We’re happy to answer any questions you may have on unsecured lending, accounts receivable factoring, PO financing or any other funding service we provide.Get Your Free Quote
Not Your Old-Fashioned Loan
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What Are the Advantages of Unsecured Business Financing?
There are significant benefits for companies that choose to pursue this financing route. First, don’t be scared by the word “unsecured.” It simply means that your loan is not protected by any sort of collateral. Chances are, you already have unsecured loans, such as credit cards or student loans. Secured loans, such as a mortgage or car loan, may be easier to obtain, however, not everyone qualifies. Additionally, unsecured financing can be obtained in as little as 48-hours once all paperwork is submitted. Other advantages include:
- Uninterrupted business operation – Unsecured lending allows you to conduct business as usual, even if you typically wait 60 days or longer for customers to pay their outstanding invoices. Apply the funds you receive to any area of your business so you can keep delivering your product or services without interruption.
- Business growth opportunity – Business poised for expansion can use an unsecured business loan to hire new employees or invest in new space and equipment to accommodate larger sales volume without waiting for those payments to roll in.
- One-time funding – These are are ideal for borrowers looking for a single transaction rather than an ongoing line of credit.
- Unlimited funding potential – You can apply to extend your credit line as your sales increase to cover rising operating costs, or if your future needs are greater.
- Reduced risk to the business owner – In a secured business loan, the lender has the right to sell any secured assets to pay the balance of the debt in the case of default. Not so with an unsecured loan, which protects your unpledged company and personal assets should you be unable to fully repay the loan.
How Can I Apply For An Unsecured Business Loan?
It’s super easy! If you are ready to transform your business with an unsecured loan, all you need to do is fill out our short application and return it with 3-6 months of bank statements. Our lenders can offer funding decisions to ownership within hours of submitting the required paperwork, and you can have new money flowing into your account within 48-hours.
We can find financing for almost any industry, for any reason. Whether you need to buy more supplies, invest in new technology and equipment, or spend some money on promotional and marketing materials, we can help. It’s a low cost, high value solution.