How Can I Get Business Loans Without Collateral?

KCF Admin

8 years ago

How Can I Get Business Loans Without Collateral?

Startups and small businesses often experience a tough time putting up collateral for business loans. That is why business loans without collateral were created by different lenders. But don’t mistake business loans without collateral as free money. Or think that they will be easy to acquire. In fact, a traditional loan from a bank that does not require collateral is actually much harder to get. That is due to the higher risk on the lenders end.

But how can you get traditional business loans without collateral?

A bank is going to have the same requirements for you that they have for a loan that has collateral; expect the stakes are much higher.

You will be expected to have:

Perfect credit for both your business and your personal life.
- If your credit history, on either the business end or your individual credit score, has red flags, the bank may find cause to deny you.
A well-defined business model and plan to grow your business.
- A bank wants to see that you are in your business for the long haul. They are looking for signs that there is future business potential in your business for them. These opportunities are more for them to continue to grow their relationship with you from a loan standpoint; as well as, a deposit perspective.
- When considering business loans without collateral, this plan has to be extremely well thought out.
- Not only will the regular business plan be required but also a detailed plan about how you plan to use the funding that is given to you.

Because of the increased risk in this type of loan product, fewer banks are giving out no collateral loans. But that doesn’t mean you can’t get the funding you need from an alternative source. Alternative lenders are popping up in all aspects of banking. These companies are offering products that allow their clients to borrow money or be advanced funds without holding collateral against the funding source.

So what is an option for business loans without collateral from a non-traditional source?

A merchant cash advance is a product that gives businesses the flexibility they need to grow their business. The benefits of a merchant cash advance provided by eBusiness include:

We can get you access to the funding you need fast!
- In just three days we can have the funds you need directly deposited into your bank account. We would love to make this faster; however, the current state of the banking industry requires a three-day pending period.
Our application process is simple and easy to understand.
- You aren’t going to find the fine print you find in a bank loan that is confusing and no one understands.
We are never going to ask for collateral to hold against your funding.
Our payback period is simple to understand.
- We will take a fixed daily percentage of your credit card sales until the total amount has been paid back.
We allow you to use the funds the way you need to grow your business.
- We will never ask you for a plan of how you plan to spend every dollar we give you.
We have very simple requirements to meet:
- Your business must have been operational for over six months.
- You must be doing at least $10,000 a month in revenue!

At eBusiness, we have a track record of successful funding. We accept over 90% of the businesses that apply for a merchant cash advance through us and meet our minimum requirements. Compare that to a bank which only accepts 25% of those who apply! Don’t wait to start growing your business, apply with us today!