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Comparing SBA Loans With Unsecured Small Business Loans

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Most business owners know that they can apply for financing through the Small Business Administration (SBA). Fewer business owners know that there are alternative financing options which may be available to them.
Let’s take a look… 

comparing sba loans and unsecured business loans

SBA Loans vs. Unsecured Small Business Loans

The SBA has an affiliation with the government and a long history of guaranteeing loans. This alone leads many business owners to utilize their service.
However, as with any business decision, it is important to understand who you are doing business with.

The SBA is NOT a Lender

The SBA’s role is to guarantee a loan that is underwritten by a bank.
The SBA needs to funnel loan applications to the bank and the bank needs to approve loans for the SBA. This means that the customers interest are not always put first in their pursuit to do business.
In fact, a recent Coleman Report shows that 1 in 10 recipients of an SBA loan defaults.


Because business was done between the SBA and the bank even though the terms of the loan were not in the customer’s best interest. The bank now owns the customer’s business, home, car, etc. 

Don’t Be Fooled By That Prime Rate+

So why are business owners attracted to SBA loans? The answer may be that it has been instilled as the acceptable practice.
That and the low interest rate.
Don’t be fooled by a low rate though, once the numerous fees are added in, the cost of the loan is substantially higher. 
Also, the approval process for an SBA loan typically takes upwards of 6 months–during which time the business can be missing out on revenue opportunities. 
Unsecured financing is a newer option. The first benefit can be seen right in the name…. 

Choose “UNSECURED” for These 3 Benefits

  1. Faster, Easier Approval: You don’t need to be a rock star to apply for unsecured financing. In fact, here’s what you DON’T need to qualify for an unsecured business loan or an unsecured business line of credit:
  2. Protect Your Personal and Business Assets: With an unsecured small business loan–or even an unsecured business line of credit, there is no risk of losing your business, home, or car. Whew! That’s one worry no business owner needs!
  3. 24 Hour Approval: The second benefit is how quickly unsecured small business loans may be approved. Most loans are approved within 24 hours allowing business to continue and revenue to come in. Unsecured, fast approval; why doesn’t every business owner use this option? Many are scared off because the APR is higher than a traditional SBA loan. However, refer back a few paragraphs and you will see that the cost of loans are truly in the same ballpark.
  4. Less Time, and Much Less Paperwork: SBA loans require massive amounts of forms to be completed and documentation to be supplied. This is time that the business owner could be working his business and earning income.Conversely, unsecured financing requires a 1-page digital application and only 3 – 6 months of business bank statements.This can be quickly completed and the business owner is back to work!

Choose National’s Hybridge SBA Loan: 4 Benefits

  1. Larger Offers, & Prime Rate+: With a guarantee from the federal government, you know that SBA loans are going to come with some of the most exciting and beneficial terms for small business owners:
    • Loan Amount: $50k – $5Mill
    • Loan Terms: 10 – 25 Years
    • Time to Fund: NBC’s expedited processing can get clients SBA funds as soon as 45 days after applying!
    • Rate: Prime Rate+
  2. Funds as Soon as 24 Hours: Unlike normal SBA loans, NBC’s Hybridge SBA Loans come with a capital injection included in as little as 24 hours after applying, so business owners can take advantage of growth opportunities immediately, and gain working capital that “bridges” the funding gap between applying for and receiving their expedited SBA loan.
  3. Easier Approval: Normally, something as small as a tax lien or outstanding taxes proves SBA qualification impossible for SBA customers. However, with the Hybridge SBA bridge loan, customers can use their immediate capital to become financeable ASAP. All you need to qualify is:
    • 2+ Years Time in Business
    • 685+ FICO
    • $10K in Monthly Gross Sales
  4. Faster, Simpler Process: With the extreme amount of paperwork and sluggish processing normally involved, commonly SBA Loans can take up to 6+ months to complete funding. Fortunately, SBA loans obtained through NBC’s Hybridge SBA Loan program complete funding nearly 4x as fast–get SBA funds as soon as 45 days! (See: How Does the Hybridge SBA Loan Work?)

Apply for an SBA Loan or Unsecured Small Business Loan

If you are in need of financing for your business, call (877) 482-3008 to consult with a Business Financing Advisor, or fill out our simple 1-minute application online here to get the funding you need in as little as 24 hours. 
Learn more about unsecured financing and unsecured small business loans and how it can benefit you!

Last Updated on July 27, 2018

National Business Capital is the top FinTech marketplace offering small business loans and financing. Harnessing the power of leading technology and smart people, we’ve streamlined the application process to secure over $1 Billion in financing for business owners nationwide.

Our Business Financing Experts work within our 75+ Lender platform to match you with the right option. Easily access the best low-interest SBA loans, short and long-term loans, business lines of credit and equipment financing all in one place.

We strengthen local communities one small business loan at a time. For every deal we fund, we donate 10 meals to Feeding America!

About the Author, Joe Camberato

Joseph Camberato, CEO of National Business Capital, developed a passion for business at a young age. Joe started his company in 2007 in his spare bedroom and has grown to secure over $1 Billion dollars in financing for small business owners nationwide. National’s team has an amazing culture and has been name the #1 Top Workplace on Long Island 3 years in a row and counting. Joe is a trusted financial expert who’s published more than 2,000 articles in the last 3 years. His articles have generated over 5 million page views and has been featured on blogs such as Google News, Yahoo, CNBC, Forbes Magazine, etc. His passion has also inspired him to build the "GrowByJoe” YouTube channel where he shares his insights into small business trends and tips for growth. Joe also holds a seat on Forbes Finance Council and is an active member of the Young Presidents' Organization (YPO), a global leadership community.





Disclaimer: The information and insights in this article are provided for informational purposes only, and do not constitute financial, legal, tax, business or personal advise from National Business Capital and the author. Do no rely on this information as advice and please consult with your financial advisor, accountant and/or attorney before making any decisions. If you rely solely in this information it is at your own risk. The information is true and accurate to the best of our knowledge, but there maybe errors, omissions, or mistakes.