How to Get a Loan Without Collateral

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Wednesday, May 24th, 2017

Like many business owners, you may be facing a relatively short-term expense such as emergency facility repairs or a higher-than-expected tax bill, or you may be focused on a longer-term investment, such as expanding, upgrading, purchasing new equipment, and so on. In these common situations, a business loan can be a great option to keep your operation strong and successful. However, you may be unwilling or unable to secure your loan with collateral. For example:

  • You may not want to pledge your personal and/or business assets.
  • You may not have enough personal and/or business assets to meet your lender’s collateral requirements.
  • You’re aware that lenders who demand collateral often undervalue assets in order to further reduce their risk exposure. For example, the industrial equipment that you and every other credible expert in the marketplace knows is worth $75,000 is likely to be valued at $50,000 by a collateral-demanding lender.  

If any of the above applies to you, then you should cross “conventional bank loans” off your list since banks always require collateral in order to get a loan. Along with near flawless credit and 24+ months of business credit history, these requirements can be difficult to meet.

Fortunately, you can pursue an option that has benefitted numerous small and mid-sized business across the country: apply for a business loan without collateral from the National Business Capital, and get approval within 24 hours. We find you the best loan deal whether you have impaired credit, a past-discharged bankruptcy or no collateral.

Part of what National Business Capital stands for is transparency (as our testimonials from satisfied clients verify!). Therefore, in light of the above you may be asking a sensible and important question: why do we offer loans without collateral in the first place?

The answer is simple: we don’t believe — and our stability, growth and success confirms — that collateral is necessary to make a funding relationship work. Our team is focused on what a business is doing today and where it’s headed tomorrow. Collateral isn’t part of the picture, because frankly, it’s irrelevant.    

Further, why do banks insist on collateral? The first reason is that they can! They make more than enough profit from their other lines of business, such as commercial and residential mortgages, to offset the drop in applications caused by their collateral requirement. The second reason is that underwriting a small business loan costs banks about as much as underwriting a loan for a large enterprise. As such, demanding collateral is a way for banks to claim they offer small business loans, but make it exceedingly difficult to obtain one.

Learn More

Getting a loan without collateral is easier and faster than you think, and keeps your personal and businesses assets where they belong: safely and securely with you.
To learn more, contact that National Business Capital team today. Our team will provide you with transparent, objective information so that you can make an informed decision. We partner with clients to help them advance on their business journey and if you decide to make us part of your success, we’d be honored to help you, too. Start by filling out our two-minute application, and we’ll help you find a loan option that’s right for your business. 

Also, be sure to check out our FREE eBook on how to get business funding when banks say no:

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