Unsecured Business Loans
Many small business owners and startups are interested in a loan or line of credit for their business, but either don’t have specific collateral (such as real estate and other assets), or don’t want to put specific business critical assets at risk.
To get a standard bank loan, businesses are often required to put up specific assets such as real estate or equipment to act as collateral for the loan. In this way, the bank can significantly reduce their lending risk. This also means that if the business owner defaults on his debt that traditional lenders can take the assets the business owner put up as security.
Why are K-WAM Financial Solutions Unsecured Business Loans Different?
K-WAM Financial Solutions makes loan approvals to small businesses based on business fundamentals like cashflow, not based on the value of business assets. The K-WAM Financial Solutions Score calculation doesn’t even take business owner assets into account. If you take a loan from K-WAM, a general lien will be placed on business assets until the loan has been paid off. The business owner is also required to give a personal guarantee for the loan. In this way, business owners without assets or who are not willing to put assets up as collateral can get funding from $5,000 – $250,000 in as fast as one business day.
So if you’re a business owner that has a strong business but no specific assets or collateral, or are just not comfortable with offering collateral, consider applying with K-WAM Financial Solutions and get a decision for your business in minutes.
Compare Loan Security Requirements
Frequently Asked Questions on Unsecured or No Collateral Business Loans
What is an unsecured business loan?
When most people think of an unsecured business loan, they think, “Do I need collateral?” In that sense, K-WAM Financial Solutions loans are unsecured, since K-WAM Financial Solutions doesn’t even look at asset value in making the loan decision. However, in the true sense of the term, unsecured business loans don’t exist. If a loan is completely unsecured, it means the lender has no recourse to receive any value from a business owner’s assets in case of bankruptcy. Examples of lending types that are often actually unsecured include payday loans, corporate bonds and credit cards.
Why does K-WAM Financial Solutions not consider business assets when making funding decisions?
K-WAM Financial Solutions has a proprietary way of determining who it lends to – the K-WAM Financial Solutions technology – which focuses on the health of your business. The existence of assets doesn’t factor in our analysis of business health.