How to Get an Unsecured Business Loan
What it is
| At a Glance | |
|---|---|
| Loan Type: | Business |
| Lender: | Bank |
| Secured: | No |
An unsecured business loan is a loan that is not secured by any collateral. Credit cards are the most common example of unsecured debt. The lender makes the loan based upon the reputation and credit report of the applicant. It is very rare to find a lender to approve an unsecured loan for a new business. They will not want to take the risk without a track record to work from.
Unsecured business loans are available for businesses to purchase furniture, raw materials, man power, and other resources before starting a new business, or for financing expansions in an established business. People interested in an unsecured business loan can receive cash anywhere from $1,000 to $25,000 with repayment periods of six months to 10 years. The interest rates will depend on the loan amount and the repayment term.
Who it's for
These loans are for small business owners who need funding for new or existing businesses, but who cannot afford to put any of their assets at risk. A good credit history and demonstration of ability to repay the loan in full are necessary to receiving an unsecured business loan.
What you need to do to apply
In order to receive an unsecured business loan, you will want to have a previous relationship with the lending institution and/or excellent personal and business credit histories. An applicant seeking funds for a new or existing business will require a business plan in order to be approved, and will have to fill out an appropriate application form.
Apply for an Unsecured Business Loan
Click here to apply for a business loan at PlanetLoan: