How it works

An unsecured business loan provides funds without needing collateral, like your house or car. Your creditworthiness alone backs the loan. Lenders can't take your assets if you can't pay, but you must still meet credit and income criteria. Often, business directors must give a personal guarantee.

Personal guarantee

Financial institutions know small businesses' success often reflects the owner's financial stability. That's why lenders might check your personal credit or ask for a personal guarantee, which is your pledge to pay back a loan if your business can't. Failing to repay after signing a personal guarantee can damage your credit score.

Who suits unsecured loans
• Businesses that need funds quickly and want fast approval times
• Businesses with less-than-perfect credit history
• Businesses that are willing to pay slightly higher rates to access the fund more easily
• Businesses without valuable assets

Key features:

• Loan amount from $5k to $1m

• Up to 36 months

• No collateral required