Unsecured Startup Loans – No Collateral Required

What is an unsecured startup loan?

Unsecured start-up loans are a great way for new businesses to get the money they need without having to put down any collateral or use a cosigner. Typically, an unsecured start-up loan is for those new business owners with great credit history and rating. Banks want to know that the money they are lending out will be repaid regardless of the end results of the business itself. With new businesses having such a high failure rate for the first 5 years it is risky for a lender to offer an unsecured start up loan.

Benefits of Unsecured Startup Loans

You do not need collateral. Unlike a secured loan, the bank is offering you money based on your past history as well as your promise to pay it back according to the terms and conditions.

How to get an unsecured start-up business loan

  1. Make sure your business meets the lender requirements
  2. Submit an application
  3. Negotiate the terms and conditions of the loan
  4. Sign the contract and set up a repayment schedule

Many are attracted to unsecured startup loans because no collateral is required. This allows you to get the necessary money to move forward with your business, without “putting up” an asset such as real estate.

Things to Consider

  • Higher interest rate. Since the bank is taking a bigger risk, they are going to charge you a higher rate of interest on your loan. To avoid a higher rate, opt for a secured startup loan.
  • Good personal credit and a clear history will make the application process much easier on you. Since you don’t have a history with your business (it is a startup, after all) the bank will look at your personal credit score and history. Make sure you have these details in order before you apply for a loan.
  • The money is to be used for expenses related to your business. This can include anything from purchasing equipment to marketing and advertising.

Terms and conditions

The terms and conditions of most loans vary, the lender determines the terms and conditions by the borrower’s credit history and rating as well as their lending institutions guidelines. The borrowing businesses agree to pay the borrowed money to the lender with a predetermined interest rate. The borrowing business is not required to put up any collateral, down payment or cosigner to secure the loan. Also known as an unsecured business loan. The lender allows the borrowing business a predetermined amount of time to repay the loan. Failure to repay the loan will result in legal actions by the lending institution to retrieve the money borrowed.

Kayleen M
Kayleen M
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American Business Credit exceeded my expectations! They were so helpful from the very beginning of the process to the end. Everyone I came into contact with were very professional and had valuable incite to help me with any hesitations and questions that I had. I am very impressed with the service they provided. Craig Johnson was my main advisor through this process and I would high recommend him based on his expertise, guidance, and service he provided to me as a client. Any financial needs I have in the future I will be a returning customer of American Business Credit. Thank you Craig for all your hard work.
Derek J
Derek J
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American Business Credit was extremely knowledgeable, professional, and helpful from start to finish. My loan processor Craig was extremely helpful, answering all of my questions as they arose. They delivered the exact results promised during our first call in a timely manner. Highly recommend.
Eduard A
Eduard A
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I am so glad I found ABC, every company or lender I talked to told me we needed to have revenue on our business to get a loan, well we are a start up, and need the loan to get started generating revenue. ABC was able to get us funded at great rates in a short amount of time. I definitely plan on using them again as our business grows!
Erik R
Erik R
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Amazing! Kina Jackson was sooooo helpful and made the process a breeze! We weren't sure what we could get as a start-up and needed a ton of equipment to get our business going. Kina dug deep and found us what we needed to fund our equipment needs and we can't thank her enough! Thanks again Kina and American Business Credit! Stop by the store next time you're in Vegas! - Erik Rogers, Veg-In-Out Market
Cassandra M
Cassandra M
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Kina was amazing to work with. As a new business owner and limited credit history, she really went to bat to ensure my business plan was heard by the lenders, so they felt confident in investing with me. Highly recommend!!
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