Unsecured Business Loans

See if a business line of credit up to $100,000 is right for your business.

What's your desired credit limit?

$26,000
What repayment term works for you?
How often do you want to make payments?

Weekly Payment Amount*:

$424.00 Apply Now

See if you qualify in minutes!

*This business loan calculator assumes a monthly interest rate of 3.3%. Your interest rate & credit limit may vary based on your application information.

What Are Unsecured Business Loans?

In a nutshell, unsecured business loans are commercial loans designed for businesses that don’t require any collateral for the loan. These loans can be attractive for businesses that don’t have much to offer in the way of collateral, although the interest rates are usually higher than secured business loans to make up for the increased risk the lenders take on without collateral.

Pros and Cons of Unsecured Business Loans

Pros

  • No Collateral Required

    Not having to put down collateral is a primary benefit of unsecured business loans.

  • Quick Approval

    With unsecured business loans, you don’t need to wait for an appraisal of the assets you’d be using for collateral. That is the case for secured loans, which can make the process take a while.

  • Easy Loan Application

    With less paperwork to complete (e.g. the appraisal), the application process for unsecured business loans is often much simpler.

  • Flexible Use of Funds

    Unsecured loans don’t have as many rules and limitations on what you can use the borrowed money for as secured loans do.

Cons

  • Higher Interest Rate

    Unsecured business loans typically come with higher interest rates than secured loans as the lender takes on more risk without collateral.

  • Short and Inflexible Terms

    The repayment period for secured loans can be several years, whereas the repayment periods for typical unsecured business loans are shorter.

  • Frequent Loan Payments

    Short-term unsecured business loans may require weekly payments on your loan. This may be difficult if your revenue tends to fluctuate.

6 Types of Unsecured Business Funding

unsecured loans - credit cards

Business Credit Cards

Small business credit cards are essentially unsecured loans. Business owners and authorized parties can borrow money from credit card companies and repay at a later date without having to secure the credit with collateral.

unsecured loans - term loans

Business Term Loans

Business term loans are loans of a specific amount agreed upon by the lender and borrower. They come with very specific repayment schedules, usually paid out weekly, monthly or bi-monthly.

unsecured loans - business loans

Business Loan With Personal Guarantee

These are like general business loans, the difference being that the business owner (or individual who takes out the loan) is the responsible party instead of the business. So while the business is the official borrower, the individual is responsible for paying off the loan rather than the business.

unsecured loans - MCA

Merchant Cash Advance

Merchant cash advances are cash advances that are approved and funded in just a matter of days and require very little paperwork. Instead of paying back in regularly scheduled payments, businesses pay back the lender via a percentage of their daily credit card sales.

unsecured loans - invoice financing

Receivables Financing

Receivables financing, often known as invoice factoring or accounts receivables financing, lets businesses receive money up front in exchange for the value of the business’s invoices that are due in the future.

unsecured loans - LOC

Business Line of Credit

A business line of credit is one of the most flexible types of unsecured business loans you can find. Once approved for a certain amount, you can borrow what you need (up to your limit) and repay on a weekly or monthly repayment schedule. As you repay, the amount you can borrow becomes available again.

What Does Headway Capital Offer?

Headway Capital believes small businesses can achieve great things with the right tools and resources. That’s why we offer a True Line of Credit, which is an unsecured business line of credit with no hidden fees.

Credit Line

Up to $100,000

Repayment Term

12, 18 or 24 months

Payment Frequency

Weekly or Monthly

Headway Capital is rated 8.6 out of 10 based on 130 reviews on Trustpilot

Minimum Qualifications

Applying for a Headway Capital line of credit is quick and easy. To be eligible, you just have to meet the minimum qualifications:


Time in Business

In business at least one year

Annual Revenue

Annual revenue of at least $50,000

Business Location

Located in a state we operate in.
See if we serve your state!

If your business is eligible and you need an unsecured business line of credit you can rely on, go ahead and see if you qualify with Headway Capital today!