Unsecured Business Loan Qualification
How do you know if your business is eligible?
- Time in Business At least one year
- Annual Revenue Annual revenue of $250,000
- Credit Score Decent FICO score
Unsecured loans are no collateral loans that don’t require collateral to get you approved for financing – making them less risky for a small business. These loans are best suited for those businesses that don’t anything to offer as collateral, however, these loans carry higher interest rates than secured business loans to accommodate the increased risk for the lenders. The loan approval is based on the creditworthiness of the borrowers.
Qualifying for unsecured loans is easy: all you need is one-year time in business, $250,000 in annual revenue and a decent credit score. After you make a loan application, we use our automated process to review your application and provide credit decisions within 24hrs.
Quick underwriting is another benefit of unsecured business loans. Generally, traditional lenders don’t underwrite loans without some form of collateral. They prefer to underwrite loans based on the value of provided assets and take liens on those assets in order to reduce their lending risk.
Get funds to grow your small business
- No Collateral Required
- Quick Loan Approval
- Quick Loan Application
- Flexible Use of Funds
- Higher Interest Rate
- Short and Inflexible Terms
- Frequent Loan Payments
- Harder to qualify with poor credit
Business credit cards are the most common type of unsecured loans. You can borrow and use money from a credit card without providing any collateral and repay it later.
You can also secure unsecured term loans as a lump sum amount to be repaid over a specific repayment schedule— typically weekly, or monthly. These term loans are a quick solution to manage cash flow issues.
Business lines of credit are a flexible funding option where you can borrow and use money from your approved credit limit and repay on a weekly or monthly basis. After the principal is paid with interest, the amount borrowed becomes available again.
Merchant cash advances are another type of unsecured funding, where you receive cash in exchange for a percentage of your business’s future revenue. They get funded quickly with little paperwork and used for unexpected situations.
A business loan with a personal guarantee is a business loan that makes the borrower (business owner) personally liable for the loan.
With receivables financing, you can obtain funding upfront in exchange for the value of your business’s outstanding invoices.
If you default on an unsecured business loan, the lender may assign your debt to a collection agency and take legal action against you to recoup some or all of the debt. Defaulting on an unsecured business loan not hurt your personal and business credit score, especially if the loan was personally guaranteed or if you’re a sole proprietorship, but also affect your ability to obtain funding in the future. If you’re unable to repay the lender or in danger of default, make sure you directly contact your lender to discuss a more convenient repayment plan.
At Merchant Advisors, we use business metrics like cash flow, time in business, credit profile, personal credit score, and many others to determine your creditworthiness. We don’t consider any particular business assets for evaluation – making it easy for small businesses to a business loan. Once you’re approved, you can get funding in as quick as 24hrs without providing any specific business asset.
Find the right funding for your business
Why Merchant Advisors?
At Merchant Advisors, we understand your unique needs and provide customized small business loans to keep your restaurant business progressing.
- Experience in the Industry
Helping small business owners since 1997
- Trusted by Small Businesses
Billions in funding to thousands of businesses nationwide
- Personalized Financing
Customized financing solutions to small business needs
- Quick Application Process
No cost, no-obligation application with funding in 24 hours
- Your Personal Loan Experts
Experienced loan experts helping you succeed
- Save Time and Money
Let’s be your helping hand so you can focus on growing your small business