An unsecured business loan is a type of loan that does not require collateral. Unsecured business loans are a more flexible option and do not require you to secure them with anything except your signature. This type of loan is often preferred as it requires less paperwork.
There are some important points that differentiate secured loans from unsecured loans. Obviously, the requirement of collateral is a major difference. Typically, when you need to borrow money, lenders want you to provide them with something of value that they could seize if you do not keep up your end of the loan agreement. This is called collateral, and it secures the loan.
Keep in mind, secured loans come at a cost: risking a valuable business asset. In many cases, you have more freedom with unsecured loans and can use the funding for the areas your business needs it most.
|Collateral required||No collateral is needed|
|No advantage to prepay||No prepayment penalties|
|Best for equipment financing, equipment leasing and vehicle loans||Best for upcoming jobs, payroll, materials or working capital|
Fee will vary and can be as low as 5.9%. Express Capital has the lowest loan costs in the industry, combined with a fast qualification process. We can get you approved and funded within the same business day. We base the cost on these criteria:
While secured loans generally are a requirement for traditional banks, you can get a good rate on an unsecured loan if your recent credit history is in good standing.
Costs are directly linked to your term of the loan — Express Capital only wants to make sure you are using your loan to help your business.
No Collateral Required
Borrow from $5 - $150k
Simple Application Process
No Prepayment Penalties
Direct Lender, No Broker Fees
A+ Rating with BBB
Your Business needs to be at least a year old.
Have a minimum annual revenue of $90,000,
or $7,500 per month over the last three months.