Fast Cash, No Collateral: 5 Ways to Get an Unsecured Business Loan
Short-term unsecured business loans are increasingly popular among startup business owners. Traditional lenders and banks offer these loans without requiring any collateral. It is essential to understand why you need the loan, its overall cost, and the application process before you apply. BitX is an online marketplace that provides unsecured loans within 24 hours, ranging from $10K to $500K, with various loan types. BitX funding only requires a credit score of 500 or more to apply for the loan. The application process is simple and takes only ten minutes, with approval notifications sent within 24 hours.
While the process of obtaining online loans is easy, there are five essential things to consider when getting a short-term unsecured business loan. These considerations are related to your credibility in paying off the loan, which is critical when you require a loan urgently.
Quick Way to Get Funding
Unsecured loans are a quick way to finance your business, and it is a great way to obtain short-term capital loans, which require daily and weekly payments. The best-unsecured business loan companies are those that accept your loan application as soon as possible, with an average time ranging between 1 and 3 days. BitX is an excellent online platform that offers longer funding times and better overall rates for small business loans.
When obtaining an unsecured loan, it is important to note that interest rates can range from 9% to over 20%, depending on the agreement with the lender. The final APR of your loan is determined by adding interest rate charges, origination fees, and the repayment period. The interest rate for unsecured loans is higher than that of secured loans but lower than that of a merchant cash advance, which can exceed 20%. The expected APR of the unsecured loan varies between 9 to over 20%, depending on the financing of your use, your credit score, and your business sale.
Fast unsecured business loans
Usually, the credit score to get a short-term unsecured business loan from any online company is more, BitX funding requires 500 or more credit scores. A 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 get a funding application acceptance notification within 24 hours.
Even if the procedure of getting online loans is very easy, there are still 5 things that you must keep in mind while getting a short-term unsecured business loan for your business. All these things are related to your credibility in 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. The 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 and 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 the 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 a short-term unsecured business loan, the lender doesn’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 papers, and in case you don’t pay your loan back, the lender can still go after your property through legal means. Your UCC lien covers 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%+ depending 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 200+.
- The expected APR of the unsecured loan varies from 9 to 100+ depending upon the financing of your use, your 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 and 5 years.
- You can make your repayment plan according to days, weeks, or months.
- You can get a loan between $10,000 and $500,000.
The criteria to meet the qualification for a short-term 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 500 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 a short-term unsecured business loan from any online company is more, BUT BitX funding requires 600 or more credit scores. A 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 get a funding application acceptance notification within 24 hours.
There are various documents that you guys need 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 a short-term Unsecured Business Loan
After completing all the aforementioned steps for obtaining an unsecured business loan, the final procedure is to apply for it. You can choose between traditional loan lenders or online lenders based on your preference. Generally, traditional lenders take longer to process, whereas online lenders are more easily convinced to provide a loan. With BitX, applying for an unsecured business loan can be completed in just 20 minutes through their online application. You can obtain up to $500,000 in an unsecured loan for your business, with interest rates starting at 9%.
These five easy steps can be used to acquire an unsecured business loan from both traditional and online lenders. However, given the growth of online lending in recent years, it is recommended to consider BitX Funding as your first choice. Call now at 203-763-1430, email at [email protected], or Apply Now!