An unsecured business loan is a type of finance that does not require you to provide security. Unsecured business loans are an excellent option for businesses that don’t have enough assets to offer as collateral or companies that prefer not to provide security. Unsecured loans for business are processed quicker than secured as there are no assets to evaluate, meaning an easier application process.
- If you need to cover a short-term expense, loan amount could also be important.
- So, you can adjust your tenure according to your cash flow cycles and repay your EMIs comfortably.
- The lenders on our panel will perform a soft and or hard credit check on your application for fraud and affordability purposes.
Our Collateral-free Business Loans are assessed based on cash-flow potential thereby allowing businesses to execute their growth plans without delays. Unlock cash tied up in outstanding invoices to help you manage your cash flow more effectively. Shaun is the founder of Money.com.au and is determined to help people pay as little as possible for financial products. If this is the case, you’ll need to provide additional documentation to the lender so they can assess your application. If you wish to borrow more than $100,000, your lender will require additional documentation to assess your application. In fact, 38 per cent of borrowers own a business operating for less than three years, according to a report by Australian lender, Prospa.
Documentation Required for Unsecured Business Loan
You won’t risk losing your collateral since you aren’t providing any. Our Bankers and Relationship Managers provide guidance throughout the entire process. Our representative will call you once you’ve applied for loan processing assistance. The Recovery Loan Scheme, administered by the British Business Bank, is offered alongside Merchant Money’s existing suite of tailored products. This means we adhere to their codes of practice and are uncompromising, in our principles and practice ethical and responsible lending at all times.
However, items can ultimately be seized by the lender if they’re included in the personal guarantee that every lender must sign to obtain an unsecured business loan. The main downside of loans with no security is that the interest rates on repayments are often high compared to secured loans. This reflects the level of risk the lender is undertaking by loaning the money without any security.