It is of common knowledge that acquiring a traditional loan requires collateral. Most lenders will need a form of guarantee in case you can’t pay back the loan with the interests.
Small business owners may not always have collateral to get access to the funds they need. If they ever have an asset, they would find it a challenge to put their personal property on the line as collateral for a much need business loan. When in dire need for additional business funding, an unsecured business loan may be the best alternative. Getting an unsecured loan requires no collateral.
Lenders use collateral as a way to secure the loan in case the borrower defaults. Collateral is an asset of great value that can be used to pledge for a loan. It can be in the form of property, equipment or company shares. Usually, when the borrower defaults on the loan, the lender gets the authority to seize the collateral and sell the assets to cover the costs of the unpaid loan.
How to Qualify for an Unsecured Business Loan
Some lenders would set a strict documentation and application process in order to sift through qualified borrowers who will prove fewer chances at defaulting on a loan. Giving out unsecured loans has a higher risk of losing on the lender’s end. In order to secure their position, lenders have mandated steep prerequisites for borrowers.
Easy Loan Process at Fast Business Financial
As an alternative, Fast Business Financial offers business owners with up to $250,000 cash without collateral through our Merchant Cash Advance (MCA). It is a repayment method of taking out a small fixed percentage of your credit card transactions daily.
To qualify for the Merchant Cash Advance is quick and easy. You just need to have the following criteria:
- Operating at least one year in business,
- Having a monthly credit card transactions averaging at least $3,000
Acquiring this type of small business loan entails no hidden and upfront fees, and no fixed amount of payments. Merchant Cash Advance might be the ideal solution if you are looking for an unsecured business loan.
There are many other small business loan options if you feel that Merchant Cash Advance is not for you. These business financing can be specifically tailored to your needs. Call Fast Business Financial and explore other small business loan options that can help you achieve your business goals.
Small Business Loan Provider
When other lenders are shutting doors on your loan application, here at Fast Business Financial opens doors of business opportunities for you. We are one of the top nationwide and online direct lenders to small business owners. We offer flexibility in payment schemes. Our loan specialists will give your loan application a personalized assessment so we can provide you with a business loan tailored for you.
Our high approval rates have given funding to more than 7,500 small and medium businesses and have released to as much as $5M in working capital.