Unsecured Business Loans
UNSECURED BUSINESS LOAN OVERVIEW
|Estimated Business Loan Term||2 to 36 Months|
|Rates||9% to 45%*|
|Time in Business Required||1 Year|
|Min Credit Score Require||500|
|Min Monthly Deposits Required||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 duration of funding|
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.
What Do I Need to Qualify?
Below is a list of the general requirements needed to get approved. Although in some cases there are many additional factors that may be considered, meeting these three requirements gives you a very high chance of having your application approved.
How Do I Apply?
Applying has never been easier. You can either call our toll free number 24 hours 7 days a week at
Submit your online application by clicking apply below and entering a few basic details about your business.
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
Keep Your Information Private. Apply Directly to One Source.
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
- No Collateral Required
- Only 2 Months in Business Required
- Less Documentation Than Bank Loans
- Low Credit Requirements
- Quick Funding Turnaround
- Higher Payments Compared to Other Loans
- Personal Guarantee Required
- No Monthly Payment Options
- Higher Revenue Requirements
- 1 Year in Business Minimum
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.
Unsecured Business Loan FAQ’s
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.
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.
No. There are no restrictions on how you use the money.
Yes. You may be eligible for better rates and terms by having a better credit profile. For this reason we always encourage customers to improve their credit history where they can before applying.
There is a possibility of extending the loan period, however, it depends on several factors. Speak with your loan advisor.
This depends on whether it was personal or business, and how long ago the bankruptcy was filed.
A minimum of 1 year is required for our unsecured financing.
No. We take pride in the privacy we offer, we never sell your information to anyone.
Why Choose Shield Funding
- No Collateral Required on our Unsecured Loans
- Extremely Competitive Rates & Terms
- Various Repayment Options
- 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