When you are a small business owner in need of an influx of cash but are unable or hesitant to put up collateral, an unsecured business loan may be your best option. These loans are a type of financing in which the lender analyzes certain factors about you and your business and decides that they are willing to fund you the money without property as a backup in case you default. In short, the lender deems your financial history to be strong enough to justify taking a risk and loaning you the money. But the greater the risk, the higher your interest rates are likely to be since the company funding your loan does not have any security if you don’t pay.Small business owners are often considered the bottom of the barrel when it comes to being potential borrowers, especially if their credit is sub-par. This is because of the volatility involved in owning your own business. Statistically, 30% of new businesses will fail in the first year, 50% within five years, and 66% within ten. But a lot of these failures happen because a business needs working capital to overcome a hurdle, such as a slow season or crucial renovations on their property, and can’t get the necessary financing.That’s where AdvancePoint Capital steps in. Unlike traditional bank loans or complicated, drawn-out SBA loans, our lenders take an alternative approach to financing. When a bank would tell you no, we have multiple options available to work with you until there’s a “yes”.
AdvancePoint Capital is an online lender that offers benefits and features such as:
- Fast approval
- Consideration of your request regardless of your credit
- Flexible repayment options
- A simple application process
- Reasonable, competitive terms
- Speedy access to funds
What Is an Unsecured Business Loan?
Getting a loan as a small business owner is usually simple if you have some collateral to put up in case you default. But this isn’t always possible for many of these business owners.
Even if it is possible because the business owner has personal assets, they often don’t feel comfortable mixing their personal property into their businesses. So when their back is up against a wall, they end up closing their doors rather than making personal guarantees.
Luckily, it is not always necessary to choose between these two extreme avenues. It just takes the right financial institution to look at your business from a different perspective and take a chance by offering you an alternative in the form of unsecured loans.
In an unsecured loan, no collateral requirements are necessary. Instead, the lenders often up the criteria required to qualify for the financing requested; for instance, requiring a minimum credit score and annual revenue.
These commercial loans are usually exactly what the small business owner needs when they don’t want to use collateral as a backup. Even with the higher interest rates involved to compensate lenders for the increased risk of unsecured business loans, this financing option is still a good option to help you reach your goals, get through hard times, and move toward success.
At AdvancePoint Capital, we can help you get the loan amounts necessary to give you the working capital required for your next step.
How Do I Get an Unsecured Business Loan?
Getting the appropriate funding option for your business is not only a big step, but it’s also a significant growth turning point that can push a company forward. With that being said, you need to make sure that your efforts to obtain your business loan aren’t wasted. Understanding unsecured loans require some initial inquires and steps in order to increase your chances of successful funding.
- Understand the ins and outs of the application process
- Take a deep dive into the different lenders and determine the best unsecured loan for your business
- Secure all pre-qualification information and make sure you’re meeting the stated requirements
- Get all of your application documentation and material in order and ready
After you’ve filled out an application, there are certain qualifications that a lender may look at to determine if you’re qualified. Lenders will look at your time in business, annual revenue, and personal credit score along with your business credit profile. While a high credit score will certainly help your chances, unsecured business loans can be obtained with less than optimal credit from the right lender. That’s where AdvancePoint Capital can help. We offer loans for businesses like yours to help fund your endeavors so that you don’t need to put up collateral to obtain capital.
Can I Get a Business Loan Without a Personal Guarantee?
A personal guarantee is a legal promise that an individual makes to provide payment for any and all credit that is issued to their business from a financial institution. It basically states that if their business is unable to complete payment and repay their debts, the individual is held personally responsible for full-filling the requirements set by the lender. Business loans all come with their own set of risks. Unsecured business loans are no different, in fact, their risks are even higher because there is no collateral at hand. Therefore, personal guarantees are much more popular with business loans of this nature.
Most lenders need to make sure that you’re able to make payments and pay back the funding they provide, so most will require some form of personal guarantee. However, there are some stipulations, like high revenues and established business credit scores, that will grant certain unsecured loans to business owners.
A strong and robust enough business can help mitigate the risk a lender may be taking on by providing strong sales performances as a rationale for lending. By using your own assets, you can get obtain unsecured business loans with no personal guarantee, however, it may not be as big as a secured business loan.
What Is the Interest Rate on an Unsecured Business Loan?
The interest rates on unsecured business loans can range depending on the lender, time in business, annual revenue and loan amounts. Unfortunately, there’s not a one size fits all approach for determining the interest rate on an unsecured loan. Because collateral is such a popular method of securing a business loan, without it — interest rates will be higher. Collateral refers to a specific asset or a set of assets that provide security to the lender in the case of unpaid payments. With traditional loan options, financial institutions will require assets equal to or greater than the value of the loan. Because unsecured loan options don’t require these assets — you will see increases in interest rates.
Depending on the factors we mentioned before such as time in business and annual revenue — you can expect these interest rates to vary fairly greatly with varying term limits and payment options. Before filling out an application, it’s a smart move to have an idea of what type of payment plan you’ll be on and how much interest you’re willing to pay. Because interest rates can be reliant on so many business factors, the best way to determine which type of unsecured business loans fit your business and how much your interest rate will be is to contact us and receive a quick quote!
All Credit Scores Are Considered
For many lenders, unsecured loans have a level of risk only mitigated by accepting borrowers with pristine credit. Small business owners often have credit issues because of the ups and downs that come with running a business.
Because the lenders at AdvancePoint Capital understand the big picture, we look at more than just your credit scores. This helps us to be able to approve more small businesses for loans – the same small businesses that banks and SBA loans would turn down.
Credit score ranges are typically similar regardless of the bureau used to pull your score. Most lenders require a score in the very good to exceptional range, which would look as follows:
- 800 – 850 – Exceptional
- 740 – 799 – Very Good
- 670 – 739 – Good
- 580 – 669 – Fair
- 300 – 579 – Very Poor
No matter where your personal score falls in this breakdown, our knowledgeable agents are available 24 hours a day to work with you and find a solution for your needs. All you need to do is reach out, complete the simple, one-page online loan application, and let our agents work with you to see which financing products we have that will help you. Flexible terms, simple solutions — that’s AdvancePoint Capital.
Fast and Easy Financing
Unsecured business loans at AdvancePoint Capital typically range from $10,000 to $500,000 and are based on a combination of factors, including your business’s annual revenue, monthly gross sales, any business assets you may have, your personal credit score, and your business’s credit score. This multitude of variables ensures that if you are lacking in one or two of these areas, the others can help boost your chances of approval.
Unlike traditional bank loans that take weeks or months to be approved for, our agents will normally have an answer for you within just a few business hours. Once you have qualified for your loan and the paperwork has been completed, you can have access to your funds in as little as one business day!
If an unsecured business loan just isn’t in the cards for you, we don’t give up there. Our lenders offer alternative financing solutions in the form of merchant cash advances, business lines of credit, invoice factoring, and more. We want you to be successful!
Flexible Term Options
Our unsecured business financing solutions are flexible term loans that are paid back in monthly payments, giving you the cash advance you need when you need it the most.
Not all businesses require a lump-sum loan, though. Our agents will listen to your goals and let you know if you may be financially better off with another alternative lending solution, such as:
- Small business loans for financing from $10,000 to $500,000, with terms up to 36 months and fixed auto repayments from your business bank account.
- Business lines of credit for flexible business working capital up to $100,000, repaid over 12 months, giving you flexible cash flow when you need it.
- Invoice factoring for small or large credit lines up to $2.5 million, depending on receivables due in up to 90 days so you can free up cash that is trapped in invoices.
- Business cash advances from $10,000 to $500,000 with no term limits, repaid in a flexible repayment strategy using a percentage of your future sales.
- Medical practice financing for loans up to $1 million and longer term options up to 7 years repaid in monthly payments.
- Equipment leasing for small or large purchases from $500 to $150,000. Decisions for leases under $10,000 are made in seconds and terms are up to 60 months.
Start With This Online Form
When you are ready to see if you qualify, it’s a simple, quick process. There are no upfront fees involved. Just fill out this one-page online form and our agents will contact you, or you can contact them, to find a business financing solution on terms that work for you.
AdvancePoint Capital offers unsecured business loans to qualified businesses. All credit is considered. Enjoy flexible loan options for your financing needs. From the comfort of your own home or office, we are an online lender with simple online application forms to push your business forward.
The fast, convenient and straightforward way to get the money you need for your business – now! Get your Quote Today by filling out our simple form.