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An unsecured business loan is very different than your traditional loan. In which you guys have to put some collateral in exchange for money to the lender. A good unsecured loan is an option that you have to make to finance your business quickly without putting out your assets. According to the National Small Business Association, every new startup gets some kind of loan during its business duration. The median small business in the USA mostly has less than a month’s worth of cash available to pay expenses as well as the repayment of the loan if there were a gap of 3 months, according to a 2016 JP Morgan Chase & Co.

An unsecured loan has different kinds of advantages over a secured loan that we are going to discuss. One of the major benefits you get with an unsecured loan is that you guys don’t have to put any assets on the line. The loan is provided to you only on a personal guarantee. Unsecured small business loans are one of the best kinds of loans, and they are very easy to get if you guys have a credit score over 600 points.

Advantages of unsecured small business loan

Speed Funding

Unlike a secured loan, an unsecured small business loan is less time-consuming. Because in these, you guys don’t have to go through typical procedures. They are solely based on your personal guarantee and the market value of your business. You won’t get this loan if one of these things is not credible. If you have everything right, then the unsecured loans can work as quick funding for your business.

Your assets are protected

As we have discussed before, you guys don’t have to put any collateral to the lender to get an unsecured loan. This means you don’t have to put your property or car to get the loan. This way, your assets are protected. Banks and other traditional lenders can take over your property in secured loans. If you missed paying any mentioned repayments, but in unsecured loans, there is no such thing. You are the sole representative of your assets.

The high amount of loans 

If you need a high amount to increase your business, then there is a chance that you can even get a larger loan. Very few lenders take that bigger risk, but it is not impossible. There is no limitation in unsecured loans like a secured loan that you will get the money that your assets are worth. You can apply for larger loans as well as unsecured business loans.

Criteria to get unsecured loans

There are a series of steps that you guys have to complete to get evaluated for your unsecured business loan. You have to look out for all these points when getting an unsecured small business loan.

  • You have to know what interest rate you are getting with the unsecured small business loans, including APR. If the interest rate is too high, you don’t have to get it to look for a better option.
  • You have to consider which lender is providing you quick unsecured loan. If some give you a loan but take too much time, then change your option. Because there are many online companies like BitX funding that can provide you with an unsecured loan quickly.
  • You have to choose the one lender who asks about minimum qualifications when giving you an unsecured loan.
  • The term of the unsecured loan should be reasonable, and there should be no hidden clause in your agreement. So, before you get your loan to try to read the term and conditions of that loan properly.
  • The unsecured loan companies have to get some kind of guarantee from you, so provide them with blanket UCC filing.

These are a few steps you guys must keep in mind when getting an unsecured small business loan for yourself.

The best-unsecured business loans are:

BitX funding: Best Overall Unsecured Business Loans for Small Businesses

BitX funding is one of the best online unsecured small business loans you can get if you have over 600 credit scores. The interest rate of this online lending platform starts from 9% only, and you can get a loan up to 500,000$. Plus, BitX funding is best for unsecured business loans up to $500,000 with credit scores as low as 500. BitXfunding Has various products like term loans and unsecured business lines of loans. If you want, you can apply for both.

BitX funding Unsecured Business Finance Rates & Fees

BitX funding’s interest rates for its line of credit start at 13.99%, and its term loan starts at 9%. Prime borrowers with strong creditworthiness and cash flows can benefit from its funding’s low starting interest rates. Similar to Loan Builder, there is no prepayment penalty, but you’re responsible for the full interest charge if you pay early (although you’ll likely receive a prepayment discount on the interest).

The BitX funding Capital term loan rates and fees are:

  • Starting interest rates: As low as 9% simple interest for term loans up to 12 months and 9.99% AIR for term loans up to 36 months (prime borrowers with a minimum of 600 credit scores can get you the potentially getting lowest rates)
  • Expected APR: ~30% to 50%
  • Origination fee: 0% to 4% of your loan amount
  • Prepayment penalty or termination fee: No prepayment penalty, but you owe the full interest charge if you repay early, with a potential prepayment discount applied
  • Additional fees: None
  • The BitX funding Capital line of credit rates and fees are:
  • Starting interest rates: As low as 13.99% APR (prime borrowers with a minimum of 600 credit scores can potentially get the lowest rates)
  • Expected APR: ~30% to 50%
  • Origination fee: You have to pay 20 $ maintenance fee.
  • Prepayment penalty or termination fee: No prepayment penalty, but you owe the full interest charge if you repay early, with a potential prepayment discount applied
  • Additional fees: None

BitX funding’s lowest starting rates are comparable to those offered by the other lenders on our list, with APRs falling in the range of 30% to 50%.

BitX funding Capital Unsecured Business Finance Terms

The unsecured business line of credit product offered by BitX funding is revolving, meaning you can re-borrow the principal on the LOC as often as you repay it. BitX funding offers two unsecured business term loan products: a shorter-term loan (three to 12 months) and a longer short-term loan (15 to 36 months).

The loan terms you can expect from BitX funding Capital for its unsecured term loan include:

  • Loan amount: $5,000 to $500,000
  • Repayment term: Three to 36 months
  • Repayment schedule: Daily or weekly
  • Collateral: Blanket UCC filing on business assets
  • Personal guarantee: Required

The loan terms you can expect from BitX funding Capital for its unsecured line of credit include:

  • Loan amount: Up to $100,000
  • Repayment term: Six months
  • Repayment schedule: Weekly
  • Collateral: Blanket UCC filing on business assets
  • Personal guarantee: Required

Of the providers on our list, BitX funding’s maximum term loan amount of $500,000 is matched only by BitX. However, the longer repayment term, of 36 months, offered by BitX funding may be more appealing to some borrowers than BitX 52-week maximum term.

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