Unsecured Small Business Loan

Written by Josh Dodes
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Time was, the notion of obtaining an unsecured small business loan of any meaningful size was largely a fantasy. After all, without substantial collateral, who could hope to convince a traditional bank to provide significant sums of capital? The answer, of course, was no one. That immutable reality, however, no longer precludes savvy small business owners from obtaining the working capital that they need.

On the contrary, obtaining an unsecured small business loan is easier than ever before. The key is to avoid looking to traditional lenders, and instead to focus upon alternative lenders, particularly those whose lending structures have been specifically designed with such small businesses in mind. Technology and a radically reimagined lending model have allowed alternative lenders to eliminate collateral outright as a qualifying criterion.

The Key to Unsecured Small Business Loans

Alternative financing firms attain all the security they need to offer unsecured small business loans--from the other end of the equation. In other words, rather than requiring the security of collateral upfront, these lenders use unique transaction processing software to ensure that a portion of every credit card transaction performed by the borrower automatically goes towards loan repayment. In this manner, small businesses can both more easily qualify for and more affordably repay lending firms in exchange for quick infusions of working capital.

To be sure, you can continue to attempt to qualify for more traditional bank loans, but now that you can get the capital you need when you need it and repay it only to the extent that you can, why bother? As a small business owner, you face enough challenges on a daily basis without also putting your limited assets on the line in the service of a loan you might have trouble repaying. Think and look outside the box, and you might just find that you can finally enjoy the best of both worlds.


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