Interest Rate: 10%+
Time to funding: 1 day - 2 weeks
2+ years in business
550 credit score
$8k+ gross monthly revenue
Taken together, Secured & Unsecured Loans would technically describe the entire universe of loans one could get. Any loan must be secured or unsecured.
To get a Secured Loan, business owners must post some form of collateral - such as a portion of its Accounts Receivable, equipment inventory or real estate. The loan agreement would give the lender the right to seize this collateral if he or she cannot make the necessary repayments.
With Unsecured Loans, no specific collateral is provided. To qualify, business owners instead must have a strong personal credit history and several years of business operating history with strong revenues. Because of the lack of collateral, interest rates for Unsecured Loans are often higher.