(888) 313-4352 M–F 9AM-7PM (EST)

Business Loans

Get pre-qualified for up to $1M

It’s free and won’t affect your credit score

Working Capital Loans
A working capital loan is a loan that is taken to finance a company's everyday operations.
Learn More
Inventory Loans
If you manage products and maintain a large inventory, having cash at hand is a must.
Learn More
Expansion Loans
Financial growth and internal business expansion go hand and hand.
Learn More
Equipment Loans
An equipment loan can be used to purchase new or used equipment.
Learn More

What is an unsecured loan?

A business may require a loan for a number of reasons. Whether you’re looking to expand your business or purchase additional inventory and equipment, quick access to a business loan can help stimulate business growth and keep a company thriving.

An unsecured loan, sometimes referred to as a signature loan or a merchant loan, is a special type of financing available to business that is different from traditional lending. Instead of requiring collateral to obtain financing, unsecured lending uses several other factors to judge the eligibility of a loan applicant. These could include things such as your credit score and sales records from the business. This type of financing may be advisable for small business owners who do not want to risk their personal collateral in order to obtain the financing they need. Since the loan requirements differ from traditional bank loans, the interest rates and speed of approval can be much different. Often times these merchant loans are reviewed and approved in a very short time frame, making them ideal for anyone who is in need of immediate capital.

Secured vs. Unsecured Loans

The main difference between an unsecured and a secured loan is the collateral required. There are pros and cons to all lending options that business owners should consider in order to come to an informed financial decision for their business.

Secured Loans

Secured Loans often come from banks or traditional lending sources. They are the most common type of financial borrowing available. Secured loans, backed by an asset such as a house or piece of property, give the lender the ability to repossess collateral should the borrower default on their loan. The type of collateral required can vary and the lender and borrower must come to agreeable terms in order to move forward with the lending process.

Loan processes vary between different secured lending services. The standard procedure usually involves the loan amount, asset negotiation and loan repayment terms. Repayment terms are often much more generous in both time and interest rate because the loan is backed by collateral in the event of default. Secured loans, backed by an asset such as a house or piece of property, give the lender the ability to repossess collateral should the borrower default on their loan.

Unsecured Loans

Secured Loans often come from banks or traditional lending sources. They are the most common type of financial borrowing available. Secured loans, backed by an asset such as a house or piece of property, give the lender the ability to repossess collateral should the borrower default on their loan. The type of collateral required can vary and the lender and borrower must come to agreeable terms in order to move forward with the lending process.

Loan processes vary between different secured lending services. The standard procedure usually involves the loan amount, asset negotiation and loan repayment terms. Repayment terms are often much more generous in both time and interest rate because the loan is backed by collateral in the event of default. Secured loans, backed by an asset such as a house or piece of property, give the lender the ability to repossess collateral should the borrower default on their loan.

Why SnapCap?

SnapCap prides itself on our ability to listen and understand your unique business needs. SnapCap is an open and honest source for businesses to request and receive the most competitive short-term loan options available online today.

SnapCap was created to challenge the way credit and loan decisions are being made today. Lending to new and established businesses have been challenged in recent years by a growing number of technology driven companies. These technologies have become more broadly available to a new breed of private lenders, making fast and accurate credit decisions possible in hours instead of weeks. The small business credit market in the U.S. is estimated at over 100 billion annually, necessitating the need for competition, rate transparency, honesty, and integrity.

Get pre-qualified for up to $1M

It’s free and won’t affect your credit score