Unsecured Business Loans
UNSECURED BUSINESS LOANS OVERVIEW
Estimated Term
12 to 36 Months
Rates
9% to 45%*
Time in Business
1 Year
Minimum Credit Score
500
Minimum Monthly Deposits
5
Min Monthly Revenues
$10,000
Min Business Loan Amount
$5,000
Max Business Loan Amount
$1,000,000
Max Number of Negative Days
4 Within a Month
*Rates depend on the duration of funding
Table of Contents
What are Unsecured Business Loans?
Our 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.
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Get an EIN business loan as fast as the same day. Shield Funding offers competitive rates and terms on all it’s funding programs. We have been assisting business owners for almost two decades and feature a five star rating.
What Will Unsecured Financing Cost You?
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.
What Documents are Needed to Apply?
Documents Required for Less Than $100,000
- Drivers License
- Bank Statements
- Proof of Ownership
- Property Lease Agreement
- Business Licenses
- Voided Check
Additional Documents for Loans More Than $100,000
- Personal Tax Returns
- Business Tax Returns
- Profit & Loss Statement
- Balance Sheet
- Business Debt Schedule (possible)
- Potential for Others
How Do Unsecured Business Loans Work?
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.
Why Would a Lender Take All the Risk?
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.
Are Unsecured Business Loans Right For You?
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.
Advantages vs. Disadvantages
Advantages
- No Collateral Required
- Only 2 Months in Business Required
- Less Documentation Than Bank Loans
- Low Credit Requirements
- Quick Funding Turnaround
Disadvantages
- No Collateral Required
- Only 2 Months in Business Required
- Less Documentation Than Bank Loans
- Low Credit Requirements
- Quick Funding Turnaround
Common Uses for Unsecured Business Loans
Unsecured financing allows business owners to invest in their business without the additional risk associated with many other funding options. Below you will find some of the ways small business owners utilize the additional capital.
Seasonal Strategies
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.
Additional Leverage
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.
Legal Expenses
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.
Emerging Technologies
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.
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Unsecured Business Loan FAQ’s
How Long Before I Receive Funding?
There have been cases where borrowers got funded within a few days after they submitted an application. It just depends on how prepared the applicant is with their documents as well as several other factors.
Is There A Possibility Of Extending My Loan?
There is a possibility of extending the loan period, however, it depends on several factors. Speak with your loan advisor.
What Is A Personal Guarantee?
It is basically stating that you did not lie on your application, and that you agree to pay back the loan according to the terms in the contract. There are many different types of personal guarantees so be sure to read what your liability may be in the case of default.
What If I Am Coming Out Of A Bankruptcy?
This depends on whether it was personal or business, and how long ago the bankruptcy was filed.
Are There Restrictions On How I Use The Funding?
No. There are no restrictions on how you use the money.
How Many Years In Business Do I Need To Qualify?
A minimum of 1 year is required for our unsecured financing.
Does Better Credit Mean Better Rates & Terms?
Why Choose Shield Funding
- No Collateral is Required on our Unsecured Loans
- Extremely Competitive Rates & Terms
- Various Repayment Option
- No Hidden Fees
- Bad Credit Unsecured
- Business Loans
- Funds Deposited Quickly
Unsecured Business Loan Review
- No Collateral Required
- Bad Credit Accepted
- Daily or Weekly Payment Options
- Quick Funding Turnaround
- Help Increase Borrowing Power
- Meet Unexpected Debt Requirements
- Great for Developing
- Business Opportunities
