Unsecured business loans do not require a borrower to pledge collateral in terms of equipment, property, receivables, or inventory. The amount of money a business qualifies for will be based on credit profile and cash flow. These types of loans are available for good credit and challenged credit profiles. These loans are given to trusted individuals and businesses that have a good credit score which means, it is solely given on the basis of credit worthiness.
Unsecured business loans can be used to cover a shortfall, for acquiring property, buying equipment or a quick expansion. Most lenders do not ask for a collateral, but there will almost always be a requirement for the borrower to provide a personal guarantee which allows the lender recourse to the borrower’s personal assets in the unlikely event of a default. Despite this limitation, unsecured business loans still provide a comparatively low risk way for a business to build its working capital.
Priority Lending can Help with Unsecured Loans
Priority Lending can help you get approved for unsecured loans even if your credit is not perfect. Once you have put up a request with us, we take your file to the right one or two lenders, based on your credit profile. Once approved, we will run through the proposals with you, explaining the terms and conditions, in order to help you make the right decision for your business.