Best Unsecured Business Loans for Small Businesses

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Best Unsecured Business Loans for Small Businesses
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What are unsecured business loans?
Unsecured business loans are a form of financing
that dont require you to put up personal or
business collateral, such as business equipment,
inventory, a vehicle, or real estate, to get
approved for funding. Secured business loans, by
contrast, require you to pledge assets that your
lender can take and sell if you fail to make loan
payments as contractually obligated by your
business lending company.
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How do unsecured business loans work?
Unsecured business loans function like other
business financing options. You typically submit
a business plan, financial statements, tax
returns, and other documents to prospective
business lenders to determine your
creditworthiness. The loan application process
will vary depending on the loan type and lender.
The application and underwriting processes are
more rigorous with traditional banks than online
lenders.
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Pros and cons of unsecured business loans
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The pros to the best unsecured business loans
include

• Applications can usually be processed quickly.
• Funding is also relatively fast.
• You can get financing even if your business
  doesnt have valuable physical assets to put up
  as collateral, which is often the case for
  startups and other new businesses.

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The negatives of unsecured business loans include

• They usually come with higher annual percentage
  rates (APRs) than loans backed by collateral.
• You may have to get funding from less reputable
  providers than traditional financial institutions.

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Unsecured business loan options

• Business credit cards A bank or credit card
  provider issues an approved credit limit not
  backed by collateral. Interest rates on business
  credit cards can be relatively high. Make it a
  point to pay off your business cards quickly so
  interest doesnt add up and hurt your business
  credit score.

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• Signature loans If you have a good relationship
  with your local bank or credit union, you may be
  able to get approved for this type of unsecured,
  no-collateral business loan option. Its based on
  a good faith assessment of the borrowers
  creditworthiness and their promise to repay the
  money. These types of unsecured term loans can be
  used for almost any purpose but are typically for
  relatively small amounts

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• Business line of credit This small business
  financing option provides a set amount of money
  companies can borrow against on an as-needed
  basis. It only needs to be paid back when the
  cash is used. Business credit lines are usually
  used to cover unexpected and recurring seasonal
  expenses. They come with relatively easy
  eligibility requirements compared with other
  funding options.

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Why Choose Biz2Credit?

• Trusted partner for franchise funding
• Biz2Credit was founded in 2007 and has provided
  more than 10 billion in loans.
• Dedicated support team
• Tailored financing solutions

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