How to get a small business loan with no collateral

no collateral business loanTraditional small business loans can translate into a long, drawn out, often cumbersome process. Small business owners are often required to provide business plans in addition to collateral to secure a business loan.

New small business owners as well as established business owners can benefit from a business loan with no collateral because you do not have to provide the documentation a bank requires to consider a small business loan.

A new business can especially benefit from a no collateral loan because they do not have a solid history of profit. Prosper offers small business loans, with no collateral, up to $25,000 and decisions can be quick and hassle free.

Prosper Business Loans

Prosper is a peer-to-peer lender which gives lenders an opportunity to fund small business loans. The opportunity for funding is greater because there are many investors as well as individual institutions competing to offer you a loan.

Whether the loan comes from several lenders, who can offer amounts as little as $25.00 or from one lending institution, Prosper handles the administration process and packages the loan offers into one loan for the borrower to repay.

For smaller businesses and new entrepreneurs this can be perfect as the loan criteria do not require a certain length of time you have been in business and your business has the potential to get several lenders competing to offer you a loan.

Why a Prosper Business Loan?

Peer-to-peer lending gives investors an opportunity to fund small business loans. The lending model is based on people helping other people. Borrowers can even write a personal note to lenders about their business and how the funds will help their business. A personal note may provide a potential lender greater insight to help make a decision to loan you money.

Prosper offers unsecured loans at great rates and there is no collateral required. Prosper loans are not traditional small business loans. The loans are based on your personal credit score along with other financial information and can be perfect for a start-up business.

Loan amounts, Rates and Terms

Borrow from $2,000 up to $25,000. The Annual Percentage Rate (APR) ranges from 6.59% (AA) to 35.84% (E). Prosper assigns a grade AA to E according to your credit score. The better your credit score the better the APR. The rates are fixed and typically carry a 3-year term.

There are no penalties for paying the loan off early. Proper handles all the paperwork making it simple for borrowers and lenders to quickly wrap up the loan process and cut-out the overhead traditional banks must deal with.

How to Get a Prosper Business Loan

Create a listing on Prosper and request a loan amount from $2,000 to $25,000. The entire process is simple and easy. Prosper will run your personal credit report and display a summary of your credit history.

You have the option of writing a note to introduce yourself and tell potential lenders about your business and how you plan to use the loan. By personalizing your loan, you give lenders the opportunity to make more informed choices.

There may be Prosper lenders who are specifically targeting start-ups looking for a business loan. With Prosper many lenders can compete to offer you a loan. Get on the way to obtaining a no collateral business loan. Create a business loan listing today.

Swift Capital Business Funding

Swift Capital Business Funding offers non-bank working capital for businesses as quickly as possible. The typical transaction takes 5 business days or less. Swift Capital is NOT a bank. They specialize in solutions for businesses with less than perfect credit. This is not a traditional bank loan. Funding is based on the cash flow of your business which means personal guarantees and collateral are not required.

How Swift Capital Works

Swift Capital will advance you an amount upfront and in exchange you’ll pay off the advance over a period of 6-12 months, through an agreed upon percentage of your daily sales. The amount you qualify for is based on your business history. Cash Advances can range from $5,000 to $100,000.

You actually have two options for repayment: (1) You can either repay your advance through an agreed upon percentage of your daily credit card sales; or (2) Through an agreed upon daily debit from your bank account based upon your estimated sales. If your business sales fluctuate, your daily repayment amount changes with with your business as the repayment amount is based on a percentage of your daily sales and is not a fixed amount.

How to Get Funding from Swift Capital

NO personal guarantee or collateral required. Less than perfect credit welcome to apply. Cash Advances can range from $5,000 to $100,000. Swift Capital has provided over $250 million in funding to over 10,000 businesses. Apply online today.

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