What is an Unsecured Small Business Loan?
Perhaps when you see unsecured, you will be curious or worry why it calls unsecured small business loans? Actually, unsecured small business loan is an advance of funds that does not require the borrower put up any collateral (their own property or assets) in order to assure that the loan will be repaid. Instead this unsecured small business loan is mainly based on the lender’s personal credit history. Sometimes these loans are also known as ‘signature loans’ because the bank has nothing but your credit history and signature. A great advantage is your personal assets cannot be repossessed. Unlike business loans secured by collateral, unsecured business loans are approved based on credit rating and financial history. If your business suffers from poor credit and/or limited financial history you should consider a business cash advance as an alternative to an unsecured business loan. Most entrepreneurs that develop small businesses struggle in starting stages creating a less than perfect
