Unsecured Loans: No Longer A Dream For Startups

Perhaps the biggest challenge facing startups is getting reliable financing. Banks are employing more restrictive requirements, these days. Unless businesses have impeccably high credit ratings, and strong financials, it is nearly impossible to get a loan. On top of that, most banks require some form of collateral to access their funding programs. Fortunately, startups can now get access to unsecured loans without collateral.

How These Unsecured Loans Work

Recently, unsecured loans have been made available to businesses that are under two years old. Unlike bank loans, which are focused on credit ratings and previous borrowing history, these unsecured loans focus more on overall profitability. New businesses and niche startups can get access to both unsecured loans and lines of credit. For small businesses, these amounts usually start at $25,000 and scale up, depending on the size of the operation, industry, and income potential. However, if newer businesses have an established sales record of at least $1 million, the unsecured loans and lines of credit are might higher.

Zero Upfront Collateral

When getting a loan from a bank, one of the stipulations is that collateral is put on the line in case the business defaults. Equipment, real estate, vehicles – in some cases the business owners house – can be put up against the bank loan. On the other hand, commercial programs for unsecured loans do not require upfront collateral. The whole point of offering unsecured loans to new businesses is to provide the flexibility they need. Most entrepreneurs fail due to inadequate funding, but small businesses with access to loans have a chance to thrive and grow successfully. This is why many business owners are stepping out fro the red tape of bank loans and shirting toward commercial unsecured loans.

Get The Money You Startup Needs

At Vantage Commercial Capital, we have the financial resources to provide unsecured loans and lines of credit to startups and small businesses. We understand the challenges facing entrepreneurs when it comes to getting the funding they need from traditional lenders. We also know that startups and small businesses are growing in number, and are the driving force of our economy. For these reasons, we offer a number of financial solutions with the flexibility that entrepreneurs desire. Whether you need working capital, new equipment, commercial real estate, or that boost to carve out a larger market share – we can help. Call our offices at 913-543-4242 and speak with one of our team members today.