Last updated on November 9th, 2017 at 11:22 am -
Hey everybody this is Tom from LenCred.
Thanks again for tuning in and checking out some of our videos.
The next video today, the next question today, comes from Eric.
Eric asks, What are unsecured small business loans?
Eric that this is a great question, an unsecured small business loan is pretty simple, unsecured means that you borrow money without pledging collateral. So it means you can get a loan without needing to pledge your precious collateral.
Of course a small business loan you know is a loan that you pay back to a lender over an agreed upon time frame, with agreed upon terms. So if you were to get an unsecured small business loan, it means you would get a business loan. Normally you would personally guarantee that loan, so you are gonna normally with most lenders personally guarantee that you will repay that loan, and you would be able to get that without collateral. Now a lot of times if lenders offer a small business loan without any collateral there is a good chance you will pay a little bit higher rate for that if you pledge some collateral.
A lot of times you do not have the collateral to pledge or we do not want to pledge it because we do not want to put it at risk. So remember if you are looking to start, build, or grow a business there are some unsecured loan options out there. Sometimes they are personal loans. Sometimes they are business loans, which allows you to help avoid pledging collateral if you do not want to pledge it or if you do not have it to pledge. That is a great question Eric! Thanks for tuning in and for asking the questions. we wish you all the best with your businesses today!