What is an Unsecured Business Loan?
As many small business owners have discovered the hard way, in order to get, sometimes you have to give. This is especially true when it comes to obtaining loans. Oftentimes lenders will require owners to pledge collateral against a loan. However, this isn’t always a viable option for business owners, which is why an unsecured business loan may be the ideal alternative. Unsecured business loans is lending without collateral.
Traditional lenders might require you to put your home or some other type of asset on the line in order to qualify for funding, but an unsecured business loan does away with this requirement.
Lenders use secured loans as a way to cover their bases in case the borrower defaults. This way, even if a business owner is unable to pay back their loan, the lender has some recourse in the form of selling whatever asset has been pledged to cover the costs.
Unfortunately for business owners, they may not always have the collateral necessary to access the cash they need. However, even if an owner does have assets that can be used to secure a business loan, they may not want to put personal property on the line for a business matter.
Qualifying for an Unsecured Business Loan
Some lenders make it quite difficult to qualify for an unsecured business loan. Because they are taking on more risk, they will have much more stringent qualifying standards intended to show them a borrower has a low chance of defaulting on their loan.
As an option, our merchant cash advance provides business owners with up to $250,000 cash without collateral. We can do this thanks to our special repayment method of taking a small fixed percentage of your daily credit card sales transactions.
Qualifying for this type of financing is easy. The simple criteria you must meet are at least one year in business and monthly credit card transactions averaging at least $3,000. With no fixed payments, hidden fees or upfront costs, a merchant cash advance could be the ideal solution if you’re seeking unsecured business financing.
If a cash advance for your business isn’t the right solution, we have many other business financing options available that can be tailored to your needs.
Contact National Funding today to explore how our loan options can help you meet your goals.
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Small Business Loans
When Banks say no .... National Funding says YES!
National Funding is a direct lender, which means there’s no middleman. We offer the flexibility to create small business loans with terms that meet your specific needs as a borrower. Our high approval rates mean that we can say ‘yes’ when traditional lenders say no. You’ll get a dedicated Loan Specialist who has specific knowledge about your industry and will provide you one-on-one personalized service.
There is no obligation to get started, and no need for collateral or a down payment. Click or call and receive a quick decision and funding in as little as 24 hours.1
Loans from $5,000 to $500,000
No collateral required
Easy, no cost, no obligation application
True to our mission, we encourage you to read the following policies and learn how they affect you as a client.
(1) 24 hours:
Fast approvals and 24 hour funding subject to receipt of required documentation, underwriting guidelines, and processing time by your bank. Funds are deposited into your business checking account as soon as the next business day after approval and acceptance of terms.
(2) Early payoff discounts:
National Funding offers special opportunities for its customers to terminate contracts early and receive a discount in the process. Equipment Finance customers who pay off the total remaining balance early, at any point during the contract, will automatically receive a 6% discount off the total remaining balance. Working Capital customers who pay off the total remaining balance in full within the first 100 days of the contract will automatically receive a 7% discount off the total remaining balance. We do not currently offer a discount on our lease contracts. Customers must pay off the balance in full, be current, and in good standing to take advantage of the discount within the time parameters.
(3) Automatic payments:
Loan payments are withdrawn via Automatic Clearing House (ACH) Monday through Friday excluding bank holidays.
(4) Wide variety of payment options:
- Equipment Financing: payments are remitted monthly with terms of 2-5 years
- Working Capital Loan: payments can be remitted daily or weekly with terms of 4 months up to 24 months
(5) Huge potential tax savings:
Section 179 tax deduction is a lucrative and important tax break that has been made permanent across the board, under the Protecting America from Tax Hikes Act (PATH Act). In most cases, the IRS allows your equipment lease or loan payments to be 100% tax deductible! You can secure the equipment, tools, and technology that you need, while also taking advantage of significant tax deductions — up to $500,000. Consult your tax professional for more details.
(6) Guaranteed lowest payment:
Pursuant to the terms and conditions specified in these Rules and Restrictions of the Guaranteed Lowest Payment, National Funding guarantees to provide the lowest payment on equipment leased through National Funding, for lease terms from 24 to 60 months, or to pay $1000 towards qualifying executed leases. Lease payment comparisons must be based on a lease in excess of $10,000, for approved equipment, and with the same terms and conditions as those offered by National Funding within seven days that the National Funding terms are issued. To be eligible, customers must provide a competitive lease quote without contingencies, and vendor invoice, and in the name of the lessee within seven calendar days of the date National Funding issues its terms. Guarantee only valid on competitive equipment leases. Equipment finance agreements do not qualify.
In the event that the monthly lease payment amount from the competing lease company or bank is lower than the monthly payment that is being offered by National Funding for the same equipment and pursuant to the same terms, National Funding will verify the validity and accuracy of the competing leasing company’s or bank’s payment options, terms and the vendor quote. National Funding has the option, in its sole discretion, to either beat the competing leasing company’s or bank’s monthly payment rate, or pay $1000 to the lessee. The lessee must provide National Funding with the competing company’s or bank’s signed lease agreement with payment terms/options, and take delivery of the equipment. Payments will be made within 30 days, and lessee is responsible for any taxes.
The Guaranteed Lowest Payment is available to both new and established customers of National Funding. This offer is valid for new lease applications only. The Guaranteed Lowest Payment is not retroactive — a previously funded equipment lease with National Funding is not eligible for the Guaranteed Lowest Payment. Only non-contingent offers of lease terms and payment are eligible. Offers made to lessee that include subsidization by manufacturers and/or vendors will not be considered in comparing competing offers.
The Guaranteed Lowest Payment may be discontinued at any time without notice.
To participate in the Guaranteed Lowest Payment program, if you have a lease agreement and vendor quote which you believe will qualify for the program, contact your National Funding Lease Manager.
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