Unsecured Small Business Loans

You Already Qualify For an Unsecured Small Business Loan Even Without
Above Average Credit

Unsecured small business loans are monetary loans that do not require collateral or guarantee.  In other words, they are not secured against the borrower's assets.


The benefit of small business loans lies in the fact that if the borrower defaults on the loan, then his or her personal possessions like his or her house or his or her property will not be seized to repay the loan.

Who are the people who require, and are approved for, unsecured business loans? 

These type of loans are usually required by small business owners 

unsecured small biz loansand owners of start-ups in order to establish or expand their company. 

Unfortunately, such individuals are not treated favorably by banks and other financial institutions because they do not have prior business experience or credit. 

Banks and other financial institutions find it very easy to turn them away.

In order to assure such individuals of the required cash flow, the SBA acts as a guarantor to offer them unsecured small business loans.

Uses of unsecured loans:

These small business loans can be used for almost anything related to the establishment and the development of a business, including the purchase of equipment, remodeling, office expansion, or marketing.  But there is  greater risk for the  funders.

With a small business loan that has no collateral, the business-owner will obtain access to a line of credit that can be utilized whenever the need arises for additional financing. 

The interest rates applicable to the unsecured small business loan may vary with each individual lender and borrower.

Another benefit of the collateral-free small business loan is that the business owner is only charged interest on the money he or she borrows from the approved line of credit.

The financial lenders associated with SBA are currently approving unsecured small business loans for small business-owners under the Community Express Loan Program.

The features of the Community Express Loan Program are summarized as:

  • Lenders of anywhere from $5,000 and $50,000 
  • very little paperwork
  • applications dealt with in two days
  • interest rates averaging around 7.75%, 
  • if approved, funds wired directly to your business account within 2 weeks.

The major disadvantage of this program is that the number of loans that can be granted are limited because the U.S. Congress has capped the number of approved loans at 10%.

Obama’s stimulus bill, however, has added to the efficacy of the program by allowing the SBA to guarantee up to 90% of the loans made by private lenders under their program.

Generally speaking, small biz loans that are unsecured are more difficult to obtain. 

Banks and other financial institutions will want to ensure that the businessWill you repay the loan? owner is capable of repaying the loan. 

With that aim in mind, they will look for positive business credit history. 

Of course it will only  increase the chances of approval for the loan, if your personal credit score, as the business owner, is an above average credit score.

Secure an expert business coach from our directory of coaches to learn how to establish and improve your business credit scores by separating your personal credit from your business credit.  

Your personal executive coach will show you how, by taking out small lines of credit and other bank loans that report to the Small Business Financial Exchange you will be well on your way towards establishing the kind of business credit score that will impress a potential lender.

From Unsecured Small Business Loans to Gov. Small Biz Loans

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