Unsecured Business Loans
Many small business owners are interested in a loan or line of credit for their business, but either don’t have specific collateral that a bank would value (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 the bank can take the assets the business owner put up as security.
Why are LoanLynx loans different?
LoanLynx makes loan approvals to small businesses based on business fundamentals like cashflow, not based on the value of business assets. The LYNXMarx™ calculation doesn’t even take business owner assets into account. If you take a loan from LoanLynx, 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 LoanLynx and get a decision for your business in minutes.
Compare Loan Security Requirements
|Bank Loans||LoanLynx Loans||Equipment Financing|
|Specific Collateral (Hard Assets, Real Estate) + Personal Guarantee||Doesn’t require assets, Uses a General Lien + Personal Guarantee||Equipment as Collateral + Personal Guarantee|
Frequently Asked Questions on Unsecured or No Collateral Business Loans
Q: What is an unsecured business loan?
A: When most people think of an unsecured business loan, they think, “Do I need collateral?” In that sense, LoanLynx loans are unsecured, since LoanLynx 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.
Q: Why does LoanLynx not consider business assets when making funding decisions?
A: LoanLynx has a proprietary way of determining lendability through – the LYNXMarx™ technology – which focuses on the health of your business. The existence of assets doesn’t factor in our analysis of business health.