A quick funding process that offers unsecured business loans to business owners.
Last Updated on January 23, 2025
Shield Funding TeamOur unsecured business funding option was created to help small business owners that do not have collateral such as property, business equipment, or any other asset that they can put up to borrow money for their existing business. This type of loan is structured for business owners that do not meet traditional collateral requirements for a bank business loan or for individuals that simply do not want to risk assets against a small business loan.
The credit requirements are also very low so they are ideal for clients looking for unsecured business loans with bad credit. This type of funding has a very quick turnaround and can be utilized to purchase additional inventory, add new employees, launch a marketing campaign, or any type of business initiative.
What Do I Need to Qualify?
Below is a list of the general requirements to get approved for business funding with our basic program.
How Do I Apply?
Applying has never been easier. You can either call our toll free number 24 hours 7 days a week at:
OR
This is a short term small business loan that you can use for any type of expense. You can use it to cover seasonal swings in business, pay a new employee, or open an entirely new location. Whatever you need for your business, these simple term business loans will help you get it.
We offer up to $1,000,000 in funds for business owners. And with interest rates of 5–45%, you can get a better deal than you would with some traditional lenders. As long as you’ve been in business for four months, earn $10,000 or more per month, and have a credit score of 500 or more, you can qualify for one of these loans.
Our terms range from 12–36 months, so you can get the amount and terms that work for you.
A business line of credit is a lot like a credit card—you get a maximum amount of credit and can spend any amount below that repeatedly (as long as you pay it back in between withdrawals). That makes lines of credit great for day-to-day purchases like inventory, decor, or marketing. Because bar inventory usually has high turnover, you’ll be making a lot of inventory purchases. So a financing option like this can be a big help.
Since it’s always available once you’ve been approved, it’s also a big help for weathering unexpected costs. Your keg cooling system might break, for example—and you need to get it fixed as fast as possible. Or you could come across an opportunity to take part in a local event that requires some upfront cash. Again, since you’ve already been approved, you’ll have the funds on hand to take advantage.
Interest rates are relatively low—usually in the 5–10% range. And because you can get up to $250,000 of revolving credit, you can use it to build up some momentum when you grow your business. We work with borrowers who have a credit score of 650 or higher, have been in business for six months or more, and have monthly revenue of at least $10,000 for business lines of credit. We also require at least five monthly deposits.
Businesses have a lot of day-to-day expenses, and that’s what working capital funding is for. Whether it’s covering payroll, stocking your inventory, or taking advantage of a marketing or advertising opportunity, these loans help you with the more mundane expenses of running a business.
Like our term loans, you can get up to $1,000,000 in working capital. You still get the option of terms between 12 and 36 months and interest rates from 9–45%. You’ll need to have two months in business, and at least $10,000 in monthly revenue to qualify. You’ll also need a credit score of 650 or better.
If you meet these qualifications, you can get the funding you need to cover any expense you might come across, from an emergency repair to making sure your stock is full of inventory.
Apply for Short Term Business Loans!
Work with a direct lender and get a short term business loan as fast as the same day. Shield Funding offers competitive rates and terms on all it’s funding programs. Apply now with a trusted lender that has been helping business owners secure working capital for two decades.
PNC Bank offers unsecured small business loans from $20,000 to $100,000, ideal for businesses that need funding without collateral. These loans have fixed interest rates, 1% lower than PNC’s standard rates at approval, making them a cost-effective option. To qualify, you’ll need a PNC business checking account and must set up automatic payments. The application process is quick, so you can receive funds with minimal delay. While no collateral is required, strong credit and financial stability are important for approval. These loans are perfect for covering short-term expenses or supporting growth when you don’t have assets to give.
Bank of America offers the Business Advantage Credit Line, an unsecured business line of credit starting at $10,000, designed to help small businesses manage cash flow without requiring collateral. To qualify, businesses typically need at least two years of operation under current ownership, annual revenues of $100,000 or more, and a personal credit score above 700. This revolving line of credit features interest rates starting at 9.00%, with no interest charged until funds are drawn. Monthly payments are based on the outstanding balance, and the line undergoes annual renewal.
Our unsecured business loans are a fast business loan solution where a small business owner is given a specific amount of money for a set period of time and the cost is determined upfront. The payback total, which includes the amount borrowed and the factor rate fee, as well as any additional costs, will be paid back through daily or weekly debits from the business owner’s bank account. There are no monthly payment options with unsecured financing. The duration of the loan will be between two months and thirty six months depending on the information provided in the application process.
There are a couple of reasons lenders are willing to offer unsecured business loans. First, although the loan is unsecured, there are often times that the borrower will sign a personal guarantee. In the case of default the borrower is still held liable. There are also higher rates with unsecured business loans when compared to secured business loans. Borrowers are willing to pay a little more because they do not have to put up their house or any other asset to fund their business. The combination of a personal guarantee and a premium gives lenders the incentive to assume all of the risk of default.
The cost of an unsecured business loan depends on your factor rate and length of time you have the loan. An example of this type of loan package would be a loan of $20,000 for 6 months at a factor rate of 1.25. That would make the cost of borrowing in this scenario $5,000, so your total pay back amount on 20K would be $25,000. Your payments would vary depending on whether you have daily or weekly payments. Use the calculator below to give you an example of total cost scenarios for borrowing and the payments you can expect to make on a daily or weekly basis.
Our unsecured business loans are a good option if you require immediate business funding for your business and you do not have collateral. It is also a great funding solution for small business owners with bad credit because it only requires a minimum FICO score of 500. However, with this financing option you have to be willing to pay a premium, therefore, the project you undertake or the additional revenue you project should factor in the higher cost for the loan for it to make sense.
There are many small business opportunities that develop throughout the year because of the day, week, month, or season. A lot of small businesses cannot take advantage of these opportunities because they do not have the capital to expand their operation. Some examples of these opportunities are the consumer rush for a holiday, or the changing of seasons that brings an additional business. With unsecured financing you can put the additional resources in place to handle these rushes and not have to turn customers away.
Unsecured capital allows business owners the possibility of increasing the amount of money they can raise simply because there is no collateral required. A small business owner can double the amount of borrowing power by getting an unsecured loan and then using their assets against a collateralized loan with another funding source.
There are a variety of reasons that a business can face mounting legal expenses. The costs are usually very high and there is generally no immediate revenue. This type of unexpected costs can run a company into the ground at an inopportune time. With unsecured financing you can avert disaster and keep your company operating so that it may overcome short term legal obstacles.
Sometimes a new technology comes out and being able to take advantage of that type of scenario can be the difference between success and failure. A good example of this is the blockchain. Every day a new business is tying their company in some way to this technology and their company is experiencing immediate growth. Unsecured business funding can put your company in the position to take advantage of emerging technologies.
A secured business loan requires collateral, such as property or equipment, to back the loan. An unsecured business loan does not require collateral, which reduces risk for the borrower but often results in higher interest rates since the lender takes on more risk.
It can be challenging for a new business to qualify for an unsecured loan, as lenders often prioritize businesses with established revenue and credit history. However, some lenders may still approve startups with strong personal credit scores and a solid business plan.
Repayment terms for unsecured business loans are often shorter than secured loans, typically ranging from 6 months to 5 years. This depends on the loan amount and the lender’s policies.
Some unsecured loans may include prepayment penalties if you repay the loan earlier than scheduled. However, this depends on the lender, so it’s important to review the loan terms carefully before applying.
Yes, repaying an unsecured business loan on time can improve your business credit score. It demonstrates financial responsibility and can help you qualify for larger or more affordable financing in the future.
Even though unsecured loans don’t require collateral, many lenders require a personal guarantee. This means the business owner is personally liable for repaying the loan if the business cannot. This reduces the lender’s risk while allowing borrowers to access funding without using business assets as collateral.
