Business Credit

How to get a small business loan with no collateral


Traditional 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.

A small business may not have collateral to obtain loans but there are alternative sources like *Lending Club Business Loans, Prosper Business Loans and Kabbage that offer online funding in as little as 48 hours.

Lending Club Business Loans

*Lending Club is a peer-to-peer lending platform that 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.

Lending Club Business Loans are available in amounts up to $100,000. Fixed interest rates as low as 5.9%*. Your rate will not ever change. There are no hidden fees to worry about and you can build your business credit with a business loan. Lending Club offers unsecured loans at great rates and there is no collateral required. Lending Club Business loans are not traditional small business loans. They loans are based on your personal credit score along with other financial information and can be perfect for a start-up business.

Business owners can choose between 1-5 year terms with fixed monthly payments or pay off your loan at any time to reduce your interest costs – with no fees or penalties for prepayments. Apply online today in as little a 5 minutes without affecting your credit score. You could be funded in as little as 48 hours for a Lending Club Business Loan.

*Lending Club issues to all states except for West Virginia and Iowa

Kabbage Business Funding

Kabbage Business Funding offers non-bank working capital for businesses as quickly as possible. The typical transaction takes 5 business days or less. Kabbage is NOT a bank. Funding is based on the cash flow of your business which means personal guarantees and collateral are not required.

How Kabbage Works. Kabbage provides you with ongoing access to funds. Draw against your line as often as once a day and pay only for what you take. Cash Advances can range from $500 to $100,000. Kabbage will advance you an amount upfront and in exchange you’ll pay off every month, for six months, you pay back 1/6th of the total loan amount plus the monthly fee. You can pay early and save. Fees are 1% – 13.5% of your selected loan amount the first 2 months and 1% for each of the remaining 4 months. No early payment fees. Each draw is treated as an agreement between you and Kabbage. Draw against your line as often as once a day. Pay only for what you take.

How to Get Funding from Kabbage. Create an account in as few as 7 minutes. Link any of your business’s online services to qualify on the spot. Kabbage approves businesses by looking at real life data, not just a credit score. No paperwork, faxing, or waiting in line. After that, access your business line of credit so you can start growing your business immediately. There are no fees until you draw against your line. Apply online today.

Prosper Business Loans

Prosper offers small business loans, with no collateral, up to $35,000 and decisions can be quick and hassle free. Prosper is a peer-to-peer lender which gives lenders an opportunity to fund small business loans. The chance 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.

Loan amounts, Rates and Terms. Borrow from $2,000 up to $35,000. The Annual Percentage Rate (APR) ranges from 6.73% (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.

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.

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