Start up and new businesses can qualify for $50k to $100k in unsecured business loans.
$100,000 and $50,000 business loans can be all a small business needs to grow. Learn more about how you can get a loan for your start up or existing small business.
With a $100,000 business loan, most small businesses have enough to get off the ground. When new business owners need to make purchases to start their business, they often turn to business loans – for instance, $50k to $100k loans can help pay for such things as equipment, rent and advertising costs.
You can apply for a secured or unsecured loan. A $50,000 unsecured business loan, for example, requires no collateral. This is ideal for startup businesses. A secured loan will require you to put up something of value in case you default on the loan.
$50,000 to $100,000 unsecured business loans can be used to:
- Start your business. If you are starting out, you may have no available capital and need business loans. $50,000 to $100,000 will help you start your business.
- Expand your business. When your business is showing some signs of success, but you need more money to grow, you can get a personal business loan. $100,000 will allow you to purchase the things you need to expand.
- Improve your cash flow. Especially when you provide services, you may have a lag time between when you perform the service and when you receive payment. Loans help you through the hard times.
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What is an unsecured business loan, and is it right for my business?
Lenders provide unsecured business loans as a small business financing option for startups and other small businesses looking to get a loan without putting up collateral. When you apply for a small business loan with a bank, you sometimes must provide collateral to secure your loan. This comes in the form of extra money up front or a lien placed on various business assets. A lien is a financial term for the assets the lender "holds" until the loan is repaid. Secured business loans can limit small business flexibility, and deter startup businesses and other companies from securing loans.
Unsecured business loans don't require any collateral. Sometimes, lenders won't require collateral but will require a personal guarantee, which is a legally binding agreement with the lender that says you will pay the loan back. Unsecure business loans can be a good financing option. These types of loans are common in merchant cash advances and other types of alternative loans. Whether this type of loan is ideal for your business is dependent on your own financial situation, but keep in mind that sometimes when lenders don't require collateral they may raise rates or up application requirements to protect their investment. Generally, whether a loan is secure or unsecure resembles credit score requirements in that it's one factor to consider when reviewing a loan offer – it all depends on your own situation.
How to apply for an unsecured loan
Several alternative lenders provide small businesses with unsecured loan options. Depending on what kind of loan you need, you can likely find a lender out there who will provide it to you unsecured and with no personal guarantee. Keep in mind that, in these situations, interest rates and fees may be higher. Applying for unsecured loans usually involves reviewing a company's loan offering and filling out an application online or over the phone. The company will review your business information, as well as your credit score and other financial statements, to determine whether your business qualifies for the loan. Many unsecured loans are short-term loans that are paid back in just over a year's time. Merchant cash advances, working capital loans and some traditional small business loans are all types of unsecured loans.
When you apply for an unsecured loan with an alternative lender, you'll likely need to provide special documentation about your business's financial stability. It's important to review each company's website to determine what they require. We recommend having basic personal documents, like a government issued photo I.D., ready. Businesses should also gather recent bank statements, credit card processing information and maybe even tax returns. [Interested in Business Loans and Financing Options? Check out our top picks.]
Lenders that provide unsecured loans
It's often not difficult to get $50,000 or $100,000 business loans if you have good credit and a solid business plan. There are hundreds of lenders throughout the U.S. that can provide unsecure small business loans so you can start your business without risking any of your personal assets. If you're interested in applying for an unsecured business loan for your start up or small business, there are a few reputable companies you may want to consider:
- Fora Financial: Fora Financial provides small businesses and start ups with various unsecure small business loans. Fora's pricing model is unique because it does not require traditional interest rates. Instead, small businesses borrow and payback a fixed amount based on the financial stability of their business. There's also no additional fees or collateral required.
- Noble Funding: Noble provides unsecured small business loans, cash advances and bridge loans. Like Fora, it doesn't require any collateral or even a personal guarantee. You can expect loan terms ranging from four to 18 months, and there are no upfront or closing fees.
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