Unsecured business funding has a clear advantage when compared with secured business loans which place your assets at risk of getting repossessed if the business fails to make payments. On the other hand, secured business loans do have benefits of their own.
That makes unsecured business loans great for new businesses, and for business owners who do not have property or valuable equipment to put up as security. Unsecured business funding is a practical financial solution for companies in all different industries and across many different stages of development.
Unsecured business loans come in two general categories:
1. Unsecured Term Loans - payments are made until the total amount is paid back
2. Unsecured Lines of Credit - allow funds to be withdrawn and repaid repeatedly
Depending on your business’s needs and Lending Score there are many different types of unsecured business loans available at your disposal.
The terms vary from around 1 year to up to 5 years. Some you can pay back monthly, others weekly, bi-weekly and even daily.
The loan amount and the interest rates will also vary again depending on your LendingScore™ - which includes funding factors such as your monthly revenue, business financials, credit score, business age and more. The better your score, the better rates and terms you can get.
Bottom line: Unsecured business loans vary depending on many factors - they are a wide financing category. To see what rates you can qualify for and check your LendingScore™ free of charge.
Who is better suited to apply for an unsecured small business loan?
In truth, an unsecured business loan can be used by many business types but they may be better suited to the following:
✔ Businesses without assets to use as security
✔ Businesses that need to get financing quickly
✔ Businesses with poor credit scores (350+ FICO score minimum)
✔ Businesses that can afford to pay slightly higher interest rates
✔ Businesses less than two years old
In short, they vary! But at Become we can help business owners with a credit score as low as 350 (FICO) here’s how...
Become is proud to partner with dozens of top lenders (in both the US and Australia) to not only offer easy and fast unsecured business loans, but to also increase the chances of getting approved for unsecured business funding (and business loans in general!). Above and beyond those perks, it also works to provide business owners with funding solutions which are tailored to their financial profiles and needs.
What allows Become to match borrowers with the most optimal loan is that those loan providers all offer different products and services. This means that the terms and conditions (as well as unsecured business loan rates) will vary. Unsecured small business loans offered by the lenders in our network require FICO credit scores that can range as low as 350!
In other words, those with a tarnished credit history can still gain access to the funding they need but just keep in mind, those businesses with a stronger credit history will be offered more competitive interest rates as they will be seen as less risky. At the end of the day, interest rates reflect the risk that the lender is taking.