How a Unsecured Business Loan Can Increase Your Business Working Capital

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Visit our site to get a free quote for Unsecure Business Loans

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For most businesses, taking out a traditional loan from the bank is often the first thing they do when they need a quick infusion of cash into their business working capital. But many small businesses are starting to realize that getting the money this way is increasingly becoming more difficult. Banks are becoming more tight-fisted lately when it comes to approving loans and if you or your business have bad credit or you don’t have sufficient collateral, then you may be out of luck.

Luckily, you have another option, and that is to take out a Unsecured Business Loan. Technically, it’s not even a loan. You just get the money you need right at the onset of the agreement, and in return the lender gets a percentage of your sales until you pay back the cash advance and the premium. Among most lenders, this percentage is commonly pegged at 8%.

There are a number of ways in which a Unsecured Business Loan can be beneficial:

  1. Your application is much more likely to be approved. If your bank loan application was denied due to your low credit, you may be relieved to know that your credit in this case is irrelevant. What’s more important is the actual stability and performance of your business. Banks need to assess your business plans, tax returns, and your financial statements. But those who provide Unsecured Business Loans check only how long you’ve been in the business and how much you generate in monthly credit card sales. If you’ve been in business for at least 9 months, for example, and you generate at least $5000 in monthly credit card sales, you’re likely to get approved for a Unsecured Business Loan.
  2. The entire process is quick and easy. Banks can take time—weeks or even months—to process a loan. But you may need only a week to receive your Unsecured Business Loan. This can be a crucial difference, especially if your business is in dire need of additional business working capital.
  3. Your credit and collateral is protected. Unlike commercial loans, a Unsecured Business Loan won’t affect your credit rating. That’s because it’s technically not even a loan. It doesn’t get reported to the credit bureaus because it’s technically a sales transaction. You don’t even risk losing your collateral, because there’s no requirement for it.
  4. You only pay back the loan when you’re also paid by your customers. Loans in general require regular (as in monthly) payments in fixed amounts. But with Unsecured Business Loan, the rate of collection varies depending on how strong your credit card sales are for the month. This can be a boon for businesses in which the revenues are seasonal or wildly fluctuating, such as hotels.

So in the end, even if banks will not grant you a loan you need, there’s still hope. You can still save and even nurture your business by increasing your business working capital with a quick Unsecured Business Loan.  For more information about this service, check out


Fast unsecure business loan | We offer unsecured business loans upto $300k

Unsecured business loans are simpler to get than the other secured kind because your company doesn’t need to put up any collateral.
Unsecured business loans are simpler to get than the other secured kind because your company doesn’t need to put up any collateral.

Let’s take a look at the pros and cons of an unsecured business loan.

If you are creating a new company, or if you are expanding a current business, you may think about financing from a third-party, like a company loan. Let’s look at a couple kinds of business loans: unsecured loans and secured loans. A business loan that is secured is often secured by collateral, and a business loan that is unsecured has no backing in that way. Getting a business loan that is unsecured has pros and cons attached to it. Let’s take a look at them.


An Introduction to Unsecured Business Loans


Lenders that give business loans that are unsecured won’t need your company to give collateral to get the loan. However, you will still need to meet some credit and income requirements. Unsecured business loans may start at $5,000 and go all the way up to $500,000, whatever the standing of the company and the credit rating of the company. Some lenders can also offer companies a sort of unsecured line of credit. Keeping your business in good standing, and having a lot of income, will go a long way in helping you to get favorable terms for an unsecured business loan. Lenders want to see that the company is solvent, and is bringing in a lot of cash flow, and they are going to be more likely to lend to your company, and at better interest rates, if that is the case.




Unsecured business loans are simpler to get than the other secured kind because your company doesn’t need to put up any collateral. Even though lenders can take the collateral if your company defaults on a loan that is secured, a lender won’t be able to seize any your business’ property if it doesn’t pay back the loan on an unsecured loan. However, a lender can still get a court injunction to attempt to do this. If your company has a bankruptcy filing, the court may get rid of all of the unsecured loans, but it won’t usually discharged the loans that are secured.




Since unsecured loans are riskier for lenders, they will usually levy worse interest rates as opposed to business loans that are secured. That could mean that your company would pay more money over the lifetime of the loan that it may have put up for a comparable secured loan of an identical figure. Interest rates that are higher could also make the single loan payments balloon. Furthermore, business loans that are unsecured are more difficult to qualify for, and they are harder to actually make happen. If your company has a bad or blank credit record, the lender could opt to not give permission for the application you  have put in.




Going into default on any kind of business loan, and that includes an unsecured business loan, will hurt the credit rating of your business. A court may get rid of the unsecured loans in bankruptcy, it won’t discharge the loan if a creditor has before gotten a judgment on your company. Some lenders can offer loans that are partially secure.


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