Unsecured business loan financing usually does not exceed $50,000 for startup businesses.
Unsecured business loan financing can be used for almost anything surrounding your business including the purchase of equipment, remodeling, office expansion, or marketing. With this loan your business would get approved for a line of credit that can be drawn on whenever the need arises for additional financing.
With the unsecured business loan your business is not required to use collateral to secure the loan. Another benefit of this type of financing is that you are only charged interest on the money you borrow from that line of credit.
Banks and other lenders who will look over your application for an unsecured business loan would like to see positive business credit history that shows that you will pay the loan. Since the loan is unsecured they will be more cautious about who they extend credit to.
Having your business credit scores established is the best way to ensure your application for financing gets approved. You can establish business credit scores by separating your personal credit from your business credit. This means that you would not use your social security number to obtain the loan.
If you take out small lines of credit and other bank loans that report to the Small Business Financial Exchange you will be well on your way to establishing business credit scores. Our Business Finance Coach shows you step-by-step how to properly build your scores using 1 small bank loan, 3 business credit cards, and 5 vendor lines of credit.
An unsecured business loan can prove to be an excellent source of financing for your small business.