An unsecured business loan is a term of loans that are getting wildly popular nowadays. Banks and other traditional lenders provide these kinds of loans to startup business owners without taking any collateral. One thing that you need to consider when getting a loan is to know why you need that loan, what will be its overall cost and what the process to submit its application is. There are many online loans providing companies like BitX an online marketplace that provides you the unsecured loans within 24 hours. BitX Funding provides loans starting at $10K and as high as $500K in multiple loan types.
Even if the procedure of getting online loans is very easy still there are 5 things that you must keep in mind while getting an unsecured loan for your business. All these things related to your credibility of paying off the loan and they matter a lot when you are trying to get the loan on an urgent basis.
- Identify Why You Need Funding
This will not be wrong if we declare unsecured loans a quick way to finance your business. It is a great short-term capital loan type that will help you finance your business and you have to pay daily and weekly payments for it. Best unsecured business loan companies are those which accept your loan application as soon as possible. The average time of a good unsecured loan provided company varies between 1 to 3 days. So, when it’s a good time to take an unsecured loan the answer to this question is when your business needs it the most. If you search carefully online there are multiple small business loans online platforms like BitX which provide longer funding time and best overall rates.
What an Unsecured Business Loan Is
Whenever you get a loan from the bank or other traditional loaning companies, they get collateral from you which can be your property or any other valuable possession that you have. But in the case of unsecured business loan lender don’t demand any collateral it just focuses on your Uniform Commercial Code (UCC) lien and a personal guarantee. This means that you get your business loan only on your credibility and previous credit score. During this borrowing still, you have to sign some paper and in case you don’t pay your loan back the lender can still go after your property through legal means. You UCC lien cover all the business assets and your receivable bank accounts.
- Unsecured Business Loan Costs & Terms
One thing that you should keep in mind when getting an unsecured loan is that its interest rates vary from 9% to 100%+ depends upon your agreement with the lender. The final APR of your loan will be determined after adding interest rate charges, origination fee and a total time of repayment from your side. This loan interest rate is way higher than a secured loan but still less than a merchant cash advance. An MCA can exceed to over 200+.
- Expected APR of the unsecured loan vary from 9 to 100+ depends upon the financing of your use, credit score, and your business sale.
- The rate of your customer retention also affects your APR rate.
- The time span of repayment varies between 1 to 5 years.
- You can make your repayment plan according to days, week or months.
- You can get loan between 10,000$ to 500,000$.
- Minimum Qualifications
The criteria to meet the qualification for an unsecured business loan will differ according to your market reputation. The general idea is that more financing has a lower qualification rate when it comes to unsecured loans. These are the following qualifications that you have to meet to get an unsecured business loan.
- You should have a minimum of 600 and higher. (check your credit score)
- Your annual revenue should be more than 100,000$.
- Your business should have completed one year or more.
Usually, the credit score to get an unsecured business loan from any online company is more BUT BitX funding requires 600 or more credit scores. The person with that much credit score is very much accessible to get a loan. The BitX funding application form only takes 10 minutes and you will be getting funding application acceptation notification within 24 hours.
- Required Documentation
There are various documents that you guys while applying for an online unsecured business loan. These documents include tax papers, financial statements, and a one-year business plan. These are the standard documents that you guys have to attach to your application for the approval of your loan. BitX funding has minimal requirements to approve your online loan. To get the online loan you have to provide
- EIN (Employer information number)
- TIN (Taxpayer identification number)
- The social number of the business owner for security
- Chart of the annual gross revenue of a minimum of 1 year.
- Your bank statements
- ID copy
- Apply for Unsecured Business Loan
Once you have completed all the above-mentioned steps for an unsecured business loan now the last procedure is to apply for it. It is up to you what you prefer traditional loan lenders or online lenders. Usually, the traditional lender takes more time, but online lenders are easier to convince in getting a loan. It will take just 20 minutes of your time to fill out the online application for unsecured business loans BitX. You can get up to 500,000$ unsecured loan for your business with interest rates that starts from 9%.
These are 5 easy steps to get your unsecured business loan. These steps work on both traditional and online lenders but keeping in mind the growth of the online lending market in the last few years. Online loaning companies like it should be your first choice.