No Collateral Business Loans
26 Surprising Stats About Unsecured and No Collateral Business Loans
Why are unsecured and no collateral loans such a smart solution?
Our unsecured business loan is a great solution if you have a 550, 650 or 700 + FICO score and are looking for between $10,000 up to $2M in funding.
We lend up to 10% of your gross revenue.
This small business loan up to $2M is also a great solution if you are looking for a straightforward and quick funding solution:
- No traditional personal guarantees
- No collateral
- No assets
- Short term loans of 5 months up to 21-month terms
- Early payoff discounts
- Renewals after 50% paid back.
Why Sunwise Capital?
- Rates start as low as $1.18. (Example, for every $10,000 borrowed the flat fee interest payment is $1,800)
- The after tax write reduces your actual cost of funds
- Quick, Simple and Easy
- Minimal paperwork
- Weekly or Daily Payments
- No Prepayment Penalty
- Does not report to your personal credit report
- We do report positive payments to business credit
- Use of funds for anything that is Business related
- Funding as quick as 24 to 48 hours
- Funding Amount $10,000 up to $2 Million
Once you have established a relationship with us every time you re-borrow:
- More Money
- Better Rates
- Better Terms
- Minimum 550 FICO Score – special programs for scores 650+ and 700+
- Minimum one year in business
- Minimum $150K gross revenue
- We could pay off 1st and 2nd position loans or go behind them as a 3rd position
- Current on rent or mortgage
- Liens are OK up to $200K on a payment plan. We consider lower lien or judgment amounts without a payment plan. Case by case.
What is the difference between a Secured vs. Unsecured Business Loan?
When you “secure” business loans, in bank parlance, you are pledging or “securing” that loan with some tangible or hard asset. This promise is an asset that the bank, lender or provider of credit can sell to cover the cost of the loan in the event the borrower defaults.Not all assets are good collateral. Your home or a car or truck are your average assets. The vehicle must be free and clear. If your home has a mortgage, the bank will take a second lien position. Of course, you can use cash, but then you probably wouldn’t need the loan, right?Other pledgeable assets may include stocks or bonds. Speak to the lending institution that requires the collateral. My guess is your shoebox collection of vintage 2010 baseball cards will not qualify.The unsecured loan, therefore, does not require the posting of an asset. There is no collateralizing of the loan. No hard or tangibles assets are backing up the loan in the event of a default.The most logical question to ask yourself is “What is the difference in interest rates between the two types of loans?”
The number one question we receive daily is, “What are your rates.”
The differences between the collateralized or secured loans versus the unsecured loan are in both the rates and terms of the loans.
Unsecured loans will naturally be more expensive. Why? It’s simple. No guarantees are backing up the loans. The terms or amount of time you to pay back the loan is typically less. Why? For the same reason. The risk.
The longer the amount of time you can take to pay back a loan, the greater the risk. Look at it this way. More “bad things can happen.” In business, especially with the high failure rate, the risk is not worth the reward. The result is a shorter loan with higher rates.
The relationship between rates and terms works like this; The longer the loan, the higher the rates.
Why do they give home mortgages for 30 years? The answer is the asset. The home. Most homes build in the past century can last well beyond the thirty-year term.
On top of that, the house isn’t going anywhere. Someone will gladly buy the home in the event of a default. The result is little risk to the bank.
Why are 15-year mortgage rates less than a 30-year mortgage? Thirty years is longer than fifteen, so your rate commiserates with the additional years. Same goes for auto loans. The longer the loan, the higher the rate. Make sense?
Here is a different way of looking at your rate.
Look at your payment. Let me lay out the argument that all loans, whether it’s the home mortgage or a car loan is all about the payment. Rarely is it about the actual rate.
It’s what you can afford. Let me show you what I mean.
Let’s assume you need a car. You see a TV advertisement for a new Mercedes S550 with a monthly payment of $659 a month. You’re so excited about this offer. You think if all you must pay is $659 a month, you’ll get two cars.
You drive to your local Mercedes dealership and take out your dream car. It’s even better than you imagined. It handles incredibly well. You make that hard-left turn, and the seat’s side air bag inflates to hold you in place.
What’s the first question the salesman asks you? “What you think?
Behind your enthusiasm, you coolly tell him that you like it. He asks what color you like. You say you love the car you just drove. After some back and forth banter he dryly asks if he can get you behind the wheel today for $659 are you ready?
Trying to keep yourself from jumping out of your seat you say, “sure.” You complete the paperwork. He brings it to the back, and some fifteen minutes later he sits back down.
He begins to explain that there I this, that and the other thing on your credit report and the best he can do is a monthly payment of $1099. You tightly cross your arms across your chest and blurt out an unequivocal, “no way!”
After giving you a few minutes to cool down, he politely asks if it’s OK to get his manager involved? He wants to see if there is anything that can get the deal done for you. At this point you’re so frustrated you begrudgingly tell him “sure,” what have you got to lose.
The manager comes in and again goes through all the questions. You know the drill. Do you like the car? Do you like the color? Do you like all the features?
Finally, after about ten minutes of this back and forth he asks you if he can work on the numbers are you ready to get the car today. He’s a smooth closer.
Just as indifferent, you tell him sure, except not at $1,099. At the advertised price of $659, you’re ready to sign now.
He politely gets up and says give him a few minutes to see what he can do.
Upon return, he begins to tell you that although he’d love to put you in the car for $659, he can’t.
You ask “Why?”
He then lays out a litany of ridiculous blemishes on your credit report. You forgot that you’re just about maxed out on every credit card. You also forgot you had the three late payments four months ago as well. Plus yo have three cars in your name already.
Is it your fault that your wife and kids need cars?
You’re frustrated. You make good money and deserve that rate and price. Sensing the anger the manager says he may have a solution.
What is it?
Well, he’d love to get you into the car at $659. Given the circumstances, the best that he can do is $709.
You think to yourself that isn’t so bad. It’s a lot less than the $1,099. In fact, that’s almost $400 less. After some halfhearted haggling, you acquiesce.
Inside you are jumping for joy. You can hardly believe that you’re going to go home in that beautiful machine.
What just happened?
How did you go from $659 to $1,099 and then to $709?
Let me explain.
The original $659 price was for a 3-year lease. The $1,099 was the three-year rate based on your credit. The $709 monthly payment is the result of the manager moving the term. Instead of a 3-year lease, he’s giving you a five-year contract. Does that make sense?
Of course, it does. Why? The reason is simple. You’re not buying the rate. In fact, you’re not buying the term. What you’re buying is the monthly payment.
In your mind, you can easily afford the $709. Geez, it’s just a little bit more than the originally advertised price. The truth is that in the back of your mind, you knew deep down that you’d be shocked if you got it at the advertised price.
I hope this makes sense. This explanation I just gave you is the reason when you look at your business loan you need to think about a few critical things.
- How much money do I need?
- What will it do for my business?
- What is my ROI?
- Can I afford the payment?
Do you know the answer to all four of these questions? Can you say “Yes,” to the last one? If so, you’re ready to go.
How a No Collateral Business Loan Can Help You
Like many startups and small businesses, yours might not have many assets that you can risk losing. It doesn’t matter whether you just started your small business or simply don’t have any resources or property to spare, coming up with collateral for a business loan is tall–if not impossible–order.
Just like in the car example above, the lender is going to evaluate your business loan application. The good news is that the top alternative lenders will consider far more contributing factors other than just your personal credit score.
Your traditional banks, however, are still married to your FICO score being the predominant indicator of credit risk. On top of the credit score, the bank and traditional lenders will require additional guarantees personally which typically includes some form of collateralized assets.
It’s little wonder that small businesses are rarely successful in obtaining financing from traditional sources.
The crux of the issue is why anyone should consider offering you money? Especially if in their opinion there is a risk, no matter how small, in getting repaid.
That puts the onus on you. This responsibility means that as a business owner you must clean up both personal and business credit reports.
Regardless of who steps up to lend you money, they will look at your credit. Part of the reason is the ‘know your customer” rule. Especially after 9/11 anyone handling money is required to make sure their client is a “good, outstanding citizen.” Makes sense, right?
Naturally, you will have to give out your social security number with your business tax ID, even though there may be no personal guarantee or security posted.
The big question is, do you go with an unsecured business loan or do you go with one that requires collateral?
The answer is probably less a question of what you want versus what a lender is willing to offer.
A story might help you with your decision making.
Initially, when I needed an enormous sum of money to fund a new venture, I spoke to a non-traditional lender. I remember like it was yesterday. It was a Tuesday evening.
He asked me how much I needed. I asked for $10M. He replied that he would start with $1M. However, without taking a breath, he then asked if I was willing to put up my house as collateral.
Now he has no idea how much the house is worth. As quickly as he asked me the question, I replied with an extremely confident, “Yes.”
He proceeded to tell me that since I was unequivocal in my answer and confident in the prospects of my new venture and ability to pay him back, that he’d instruct his attorneys to draw up the paperwork in the morning.
How confident are you? Are you willing to risk it all? If you are not that confident, then you may want to rethink your approach to getting the money you need.
By the way, what I didn’t tell you is that he was charging me 45% interest.
Did You Just Say 45% Interest?
Yes, I did! What I didn’t tell you is that my ROI was 720%. Let me ask you, “Would you pay 45% interest on a loan if you knew your margins were over 700%?”
That’s why I keep insisting that you know your numbers. Inside and out. I can not stress that concept enough.
Fortunately, you have options.
Sunwise Capital offers no collateral business loans, fast loan processing, a $500 guarantee and many other perks. Learn more about our no collateral loans below.
No Collateral? Forget About That Traditional Business Loan
Nothing is worse than applying for financing for your new business only to be told that you must provide substantial collateral. How is a fledgling company expected to have those kinds of assets?
Equally frustrating is owning a small business with fluctuating revenues and being turned away because you have no assets to spare.
Avoid all this frustration by applying for a no collateral business loan from Sunwise Capital instead. By “no collateral,” we truly mean no traditional personal guarantee.
You don’t have to give us anything other than a completed one-page application and three months of your most recent business bank statements. All we ask is that you stay in your regular business and use the funds to grow that business.
Convenient No Collateral Business Loans
Our business loans aren’t just convenient because no collateral or assets are required. They’re also convenient because we have one of the most streamlined applications and approval processes around. Everything is online, and you don’t need a pre-approved reason for requesting the loan.
Most no collateral loans are approved within one business day and financed on the following working day, making this one of the fastest, easiest ways to get the financing that you need even if you have no collateral.
Flexible Loans for Small Businesses
The executive suite of the Sunwise Capital team are former small businesses owners, so we understand your needs and perspectives. You need a business loan that is customized to suit your needs, and you can get that from us.
We don’t require collateral, but we do offer several loan products, including bad credit business loans, business capital loans, short-term business loans and more.
The loans get paid on a daily, weekly or monthly basis. We have loans with terms ranging from one to five years. We also offer merchant cash advances that are uniquely flexible and convenient.
With Sunwise Capital, you can get the financing that you need for your small business in no time. Since we don’t require collateral for our loans, you don’t have to worry about scraping some together.
In fact, you, like most of our business clients probably have everything that you need right now.
Our entire application and approval process is online, so you don’t have to drive to a bank or complete a bunch of paperwork. In the unlikely event that you find the same loan with a better rate, Sunwise will beat it or pay you $500.
No Collateral Business Loans Gets Easy Cash for Your Business
As a small business owner, you’ve probably noticed that many things work against you. That’s particularly true when it comes to getting a business loan. Banks and major lenders have veritable laundry lists of requirements.
In addition to needing great personal and business credit, you must usually provide some collateral or assets. If you’d like to get a business loan that doesn’t require you to put your assets on the line,
Sunwise Capital can help.
No collateral? No problem with our business loans
The executive team at Sunwise Capital is made up of former business owners. Unlike most top small business lenders, then, we understand the pressures that small business owners face.
Chief among them is the need to provide collateral to qualify for a business loan. If you’re in a position where you need cash for any reason, however, the last thing that you want to do is risk personal or business assets. We understand, which is why we offer the easiest no collateral business loans around.
About Sunwise Capital?
We know that you have lots of options when it comes to getting cash for your business, and we’re confident that you can’t do better than us.
More than three-quarters of our clients come back to borrow again from us two to three times per year because we are in their corner.
You shouldn’t have to put assets on the line to get cash for your small business, and you don’t have to when you apply for a loan with us.
No Collateral Loans for Any Purpose
At Sunwise, we’ve eliminated most of the hurdles that prevent small business owners from getting the cash that they need. At Sunwise Capital, we don’t need you to explain the use of funds if it is for your business. This underwriting difference is just one huge difference between the big lenders and us.
If you qualify, you can use it for anything in your business. Renovate your business, invest in new equipment and technology, hire new employees or catch up on taxes and insurance bills–it’s entirely up to you.
The quickest, easiest way to get a business loan for your small business
Applying for a small business loan with Sunwise Capital couldn’t be easier. Just give us the last three months of your business bank statements and complete a one-page application.
Approvals are within 24 hours, and loans fund one business day after that. We can get you the cash quickly because we have created a streamlined, proprietary process that lets us approve you in no time–and not having to provide collateral plays a huge part in that.
Get a no collateral business loan now
If you’re online searching for small business loans, you probably need cash quickly. Avoid banks and big lenders that make you endure a long, arduous application process.
Don’t fret about putting personal or business assets on the line. With Sunwise Capital, being approved for no collateral business loans is a snap.
FIND OUT TODAY