No Collateral Loans 189
The first step in getting an unsecured, or no collateral, business loan is to put a financial package together. Lenders will likely require you to fill out an application that will have both your business and personal finances involved. You might need things like several years of tax returns and other financial statements in order to get final approval and these documents will need to be faxed directly to the lender, so you’ll need to make sure you have access to a fax machine.
Generally no collateral loans are for smaller amounts than secured loans, so you’ll have to make due with a smaller amount, usually somewhere from $1,000 to $50,000. Clearly this amount varies a great deal and the amount you qualify for depends on a lot of different factors such as your credit or FICO score and debt to income ratio.
Companies exist to help match you up with an unsecured lender. One such company, America One Funding, works with a network of such lenders and gets commission from the lender who ends up funding your loan. Generally a company like this is very helpful as they have an extensive list of resources and can find more information in less time than you could on your own.
Credit cards can also be used for small business loans. If you have good credit, you’ll qualify for more unsecured debt, but even if you have bad credit, you’ll still qualify for some. You’ll want to keep an eye on the interest rate for cash advances, as they usually are higher, but you can open several credit cards at once and take out cash advances on all of them.
You can also get funing through people-to-people lending where investors want a return off of the loan.
Click on small business loan with bad credit for more information.