Unsecured business loans do exist. Business Money Source has a funding source that is offering an unsecured loan for currently businesses in the U.S.A. only. The lending amount range is from $5,000 - $250,000.
An unsecured loan is one that you can obtain for your business without collateral to secure the debt in cause you default in your repayment of the loan. Sometimes lenders or lending intermediaries will advertise business cash advances as unsecured loans.
Business Cash Advances are really not an unsecured loan but an advance on your credit card sales. In effect, you are selling, at a discount, a portion of your future monthly credit card revenue.
Strong credit histories for both you and your business are desirable but Business Money Source offers a loan program with minimum credit score of 700. Unsecured loans are sometimes referred to as “signature loans” since you may be required to personally guarantee repayment of the debt. You will also have to meet some variation of the following criteria:
1) The business must have been in operation for a minimum amount of time, usually six months to a year or two.
2) You must have a business bank account
3) The business must maintain a specific minimum average bank account balance. This average is usually in the $2,500 – 6,000 range.
4) You business may be a “brick and mortar” or online business with customer or client base not dependent on a few large accounts.
5) Minimum credit score will depend upon the particular loan that Business Money Source will help you decide is best for your. Minimum credit will probably range from 650 to 720.
Business credit companies and private investors, rather than commercial banks, most often grant these loans. Generally, banks like collateral as security for their loans. There are exceptions to every rule. You may secure an unsecured business loan from your bank if you meet certain criteria.
For example, if you have a great relationship with a branch manager and also have a strong business with an excellent credit history then acquiring a loan may be as simple as signing on the dotted line and a handshake. However, this "old style" banking is becoming very rare in the new economy, which is all the more reason to use a Business Financial Consultant like Business Money Source to guide you to the unsecured loan that is right for you and your business.
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