Unsecured Business Loans
Need a business loan without collateral or a personal guarantee? Business Finance Source™ offers unsecured business loans up to $850,000
Funding Amounts
$10,000 to $850,000
Funding Time
24 hours
Interest Rate
Starting at 8.95%
Repayment Terms
1-5 year
Unsecured Small Business Loans For Small Businesses Across The USA
Are you tired of being told by US lenders that you can only secure business financing if you provide collateral or a personal guarantee? Look no further! Business Finance Source™ is here to provide the funding you need, without asking for collateral or a personal guarantee. With our unsecured business loans, you could secure up to $850,000 by tomorrow.
At Business Finance Source™ our simple application process makes it easy to apply, and our quick instant decision ensures that you’ll know if you’re pre-approved instantly. Plus, with funding available in as little as 24 hours, you can get the cash you need to take your business to the next level right away. Don’t wait any longer to get the financing you need – apply with Business Finance Source™ today.
The Easier Path to a Loan That Does Not Require Collateral
Get the funding you need to reach your business goals without worrying about having to provide collateral. Poor credit accepted. Minimal paperwork.
Fast Funding
Get pre-approved in 60 seconds and receive final approval and funding in as little as 24 hours
Minimal Paperwork
Just upload your last 3 months of business bank account statements.
No Collateral Required
All of our business lending products are unsecured.
Poor Credit Accepted
We can still fund your business even if you have poor credit.
How To Get a Unsecured Business Loan From Business Finance Source™
Loan Application Process
1
Apply Online
Our platform evaluates your loan application and gives you an initial decision in 60 seconds.
2
Upload Bank Statements
Once you’re pre-approved, upload the last 3 months of your bank statements to get final approval.
3
Get Funded
After final loan approval, get the funds deposited into your bank account in as little as 24 hours.
Eligibility Requirements
At Business Source, you must meet the following minimum requirements to qualify for unsecured business financing:
Be in business for 6 months or more
Provide 3 Months Bank Statements
Have an active Business Bank Account
Business must make +$7,500 per month
Who can apply?
You can apply for finance with Business Finance Source if you’re a US citizen or resident over the age of 18 years of age.
Unsecured Business Loans Explained
What Is It?
Lenders often ask for assets such as real estate, inventory, and equipment to secure a loan
An unsecured business loan is a business loan that does not require the business owner to provide collateral or a personal guarantee to repay a business loan.
How Does It Work?
Unsecured business loans that do not require collateral or a personal guarantee have higher interest rates than secured loans. To qualify for an unsecured loan, a small business owner should have a strong personal credit score to demonstrate their ability to repay the loan. These loans are often offered as short-term financing options to minimize the lender’s risk and are typically available from online lenders rather than traditional banks.
Interest Rates
Banks and traditional lending institutions charge interest rates between 10% and 15% for unsecured business loans. Online lenders and alternative lenders charge an interest rate between 10% and 50% for funding without collateral. The interest rate that will be charged will depend on the credit score and financial health of the business.
Repayment Terms
Repayment Period: Unsecured loans are considered medium-term lending and have a repayment period ranging from 2 to 7 years.
Repayment Frequency: The most common repayment schedule for unsecured financing is monthly payments.
Repayment Amount: Business owners must pay back the loan amount and interest. Some brokers and lenders may also charge origination fees and closing fees. It is important to ask about all fees before committing to an unsecured loan to avoid any hidden costs.
Unsecured Business Loan Calculator
This calculator helps you estimate the cost of taking out an unsecured business loan.
Find out more about our business loan calculators.
What Can It Be Used For?
Unsecured business loans are commonly used to finance medium-term business expenses or purchases, such as expanding or opening a new location, renovating or upgrading your current location, purchasing inventory or equipment, hiring new employees or providing employee training, and providing working capital.
Interest Rates For Different Types Of Unsecured Financing
| Unsecured Financing Type | Interest Rate Ranges | Our Interest Rate |
|---|---|---|
| Business Lines of Credit | 10% to 40% | 5% upwards |
| Merchant Cash Advances | 1.1 to 1.4 factor rate | 1.15 upwards |
| Business Equipment Loans | 7% to 20% | Starting at 8.95% |
| Unsecured Business Loans | 7% to 45% | Starting at 8.95% |
Benefits and Drawbacks
Benefits
- Allows businesses to quickly access funds when needed
- Can be used to finance any type of business expense, including operational costs and business items
- No collateral is required, so businesses do not have to put up any assets as security
- Lenders cannot seize business assets if the business is struggling to repay the loan
Drawbacks
- Qualification may be difficult for businesses with poor credit, limited financial history, or insufficient cash flow
- Interest rates will be higher than secured loans, as the lack of collateral makes the loan a higher risk for the lender
- Repayment terms are usually shorter, typically within 12-36 months
FAQs
Some banks offer business loans without requiring collateral. Instead, they may ask for a personal guarantee or a co-signer as security. The amount that can be borrowed through these unsecured loans typically ranges from $1,000 to $100,000. For larger loan amounts, collateral will generally be required.
Having a co-signer with a strong credit history to guarantee your loan can increase your chances of getting approved for an unsecured business loan.
It is possible to obtain a business loan without a personal guarantee from alternative lenders such as online lenders. However, the interest rate on these loans will be higher because the lender is taking on a higher level of risk by not requiring a personal guarantee.
If you default on an unsecured business loan, the lender will consider the debt to be in default and may turn the loan over to a collections agency to recover the debt. The lender may also initiate legal proceedings to recover the debt.
Apply For Unsecured Business Loans Now
Borrow between $5,000 and $850,000. The application process is 100% online, with an initial decision in just 60 seconds and applying won’t your credit score.