How to Get Unsecured Business Funding

How to Get Unsecured Business Funding

  • January 17, 2022
  • Written by : Elizabeth Beall

Don’t let the word “unsecured” scare you off. Business owners often mistake unsecured business funding to be unreliable or lack security, transparency, or honesty because of the name.

Fortunately, it is quite the opposite and has helped thousands of business owners make quick decisions, pay operating expenses, purchase equipment, and more, in a short amount of time.

To understand how to get unsecured business funding, it’s important to know what unsecured business funding is and whether or not you should apply, first.

What is an unsecured business loan?

According to the Small Business Administration, an unsecured business loan or line of credit is “issued and supported by the owner’s creditworthiness, rather than by any form of collateral.”

This means that collateral, such as real estate, large work equipment, or even unpaid invoices, does not need to be used as asset-backed financing, and you, the business owner, do not have to risk using valuable assets to secure funding.

What are some examples of unsecured business loans?

  • Equipment financing: new equipment used as collateral to avoid leveraging your own assets
  • Merchant cash advance: business owners receive a lump sum of accounts receivable

Should you apply for an unsecured business loan?

If you are in need of fast working capital and an even faster repayment term, then unsecured business funding is most likely the better choice for your business.

On the other hand, if you are hoping to invest, or take large risks or opportunities such as expansion, then secured funding is probably the best option for you. It is more often chosen for long-term purposes.

How to get unsecured business funding

If after now having gathered more information, you would like to apply for an unsecured business loan, we would be honored to have you choose us as your trusted, reliable financial team.

To apply, you’ll need three months of business bank statements and three minutes of your time to complete our 3-minute application.

We look forward to meeting you soon!

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