An unsecured business loan is attractive to the borrower in the sense that the risk involved is minimal. Business owners do not need to put their properties up as collateral for the loan. Sometimes, lenders want to avert as much risk as possible, hence they will request for a personal guarantee. With a personal guarantee, the lender can seize your personal properties if you do not repay the loan. Unfortunately, one dominant feature of an unsecured business loan is the high interest rate that comes with it. Even though lenders do not like granting risky loans, there are some lenders who offer unsecured business loans without personal guarantees. Check them out.
Kabbage is a good option for business owners with poor credit scores. They fund loans as quickly as one business day. Their loans are usually short term loans with high APRs. The APR ranges from 24% to 99% and you will need to pay back in 6 to 12 months. Kabbage offers a minimum of $2,000 and a maximum of $250,000.
- FundBox is an excellent option for borrowers who have several outstanding invoices from customers. FundBox can offer you the cash to fill the gap between your cash flow while you wait for your customers to pay their invoices. They can offer you the cash as fast as the next working day and you can get up to $100,000. The APR ranges from 10.1% to 68.7%. FundBox also offers a line of credit to businesses. You can get up to $100,000 at APRs that range from 10.1% to 79.8%. The loan term is 12 weeks.
StreetShares offers three loan options for borrowers. You can opt for loan terms and you will get up to $250,000. You can also get up to $250,000 in the standard line of credit, and up to $2 million in invoice factoring. The general APR ranges from 9% to 40%, and you will be required to repay the loan in 3 to 36 months. StreetShares can fund the loan in 1 to 5 days.
There are some lenders who request for personal guarantees but they have good loan terms. Such lenders are also worth the consideration. They include the following.
OnDeck offers a business line of credit up to $100,000. You will be expected to repay weekly for 6 months. The APR ranges from 11% to 60.8%. You can get the cash by the next business day. However, you will be responsible for paying the loan if your business does not pay the loan since you will sign a personal guarantee.
This lender offers loan terms with low APRs. Their APR ranges from 9.8% to 35.7% which makes their loans just a bit more expensive than SBA loans. The loan terms are from 1 to 5 years. The loan can be funded 2 days. However, the application process can last for a week or two on rare occasions. You can access a loan amount between $5,000 to $300,000.
BlueVine specializes in a line of credit and invoice factoring. With the line of credit, you can get up to $250,000 at an APR that ranges from 15% to 78%. You will be expected to pay back within 6 to 12 months. This lender is known for their quick loan process and fast funding procedure. You can get the cash in your account as soon as the next business day. They can also offer you up to 90% of your outstanding invoices. The amount ranges from $20,000 to $5 million. You will be expected to pay back within 1 to 13 weeks. Due to this, it is recommended that you only factor the invoices of reliable customers. Customers who will pay before the repayment term ends. This will help you to avoid penalties. BlueVine can fund your request in 1 to 3 days.
When you want to apply for an unsecured loan for your business, you should consider the following factors. You should check the interest rates on the loan and the speed of funding. If you need the cash urgently, look for lending who offer same day or next day funding. You should also choose lenders whose minimum credit requirement you easily meet. That will increase your chances of getting approved for the loan. You can also consider the repayment terms. Before you proceed to sign any loan form, make sure you read the lender’s terms and conditions. You should also ask about the fees and know exactly what the lender is offering. This will help you to secure a loan option that works for you and your business. You should also remember to make proper plans towards the early repayment of the loan.