There are several ways to obtain commercial business funding, and the first step is determining whether secured or unsecured financing is the right option for your business.
Secured Business Financing
Secured business financing is an option if you have assets that can be used as collateral. Businesses may qualify for a secured SBA loan or line of credit if the assets offered meet SBA requirements and are considered acceptable collateral.
Common assets used for secured financing include residential real estate, commercial property, and business equipment. Some banks and finance companies may also accept alternative forms of collateral, such as automobiles, artwork, or stocks, depending on their internal lending policies and the loan amount requested.
Unsecured Business Financing
Another option for small business funding is an unsecured business loan. Unlike secured loans, this type of financing does not require collateral. Instead, lenders evaluate the creditworthiness of the primary guarantor.
To qualify for an unsecured business loan:
1. The primary guarantor typically must have a strong personal credit score
2. The guarantor should own at least 81% of the business
3. The business generally must be operating for a minimum of two years
In some cases, banks and finance companies may offer no-documentation (no-doc) funding options. Availability depends on factors such as the type of business, financial profile, and the state in which the company operates.
For more information about our products, call us at 1-888-294-2584 and ask to speak to one of our loan specialists
