Unsecured Business Loans
Almost every business needs quick, unsecured small business loans at some point. It’s tough for small businesses to maintain constant cash flow, expand, or invest in necessary upgrades when financing is inaccessible. Peer to peer lending meets this small business funding need with terms that work for real companies. Here are some examples of some of the best P2P business lenders.
Loan Types: P2P LendingAvailability: USA, Small businessesSecurities: UnsecuredLoan amount: $15,000 – $300,000Interest: 5.9% to 25.9%Overall Rating: Superb 4.0 / 5.0 About Lending Club Lending Club originated much of the business model that has become Peer-to-peer lending in the United States. Founded in 2006, the company became the first business of its kind to register its loans as securities with the SEC. At the end of 2014, Lending Club became the year’s biggest tech IPO, and has lent more than $7 Billion
Loan Types: Invoice Factoring, Line of Credit Availability: USA (SMEs with Unpaid Invoices (B2B Only), Or SME’s Requiring Line of Credit) Securities: Against Unpaid Invoices, Or Unsecured Line of Credit Loan amount: $5,000 – $50,000 Interest: APR: 30% to 50% Overall Rating: Quick and Smooth 3.8 / 5.0 About BlueVine BlueVine is an American answer to the ecommerce line of credit movement led by British companies. Based in Palo Alto, California, the company exists to help businesses finance the sometimes 30 to
Loan Types: B2B Loans Against Unpaid Invoices, Line of Credit Availability: USA (Merchants with Unpaid Invoices or Those Looking for a Flexible Credit Line) Securities: Unsecured Loan amount: $10,000 – $100,000 Interest: Varies: by product. 4.66% to 79.8%. Overall Rating: Most Effective 4.9 / 5.0 About FundBox FundBox is one of a group of US B2B lenders in business to help companies maintain cash flow while awaiting outstanding payments. Unpaid invoices are a problem for small businesses who may wait
Loan Types: Small Business Loans Availability: USA (Only Established/Strong Businesses with FICO Score 500+) Securities: Unsecured – Personal Guarantee Loan amount: $5,000 to $250,000 ($20,000 For Revolting Credit Lines) Interest: APR: 20% and up. Line of Credit Interest: 30% to 36% Overall Rating: High Reliable & Efficient 4.6 / 5.0 About OnDeck Founded in 2006, OnDeck has supplied business loans to thousands of small-to-medium sized US companies. It is one of 2 public companies of its kind (ONDK: NYSE), which also
Loan Types: Small B2B Loans Availability: UK Securities: Unsecured Loan amount: £1,000 – £50,000 Interest: 4% – 14%, 1 month – 6 months Overall Rating: Quick! 3.9 / 5.0 About iWoca Originally geared toward small web merchants, iWoca has expanded its lending platform to meet the needs of nearly all UK businesses. Since its founding in 2012, iWoca has become established in the UK ecommerce market. iWoca balances convenience, security, and service, quickly gaining ground in a growing financial market. Sole
Loan Types: P2P Lending Availability: UK Securities: Unsecured Loan amount: £1,000 – £25,000 Interest: 7.2% to 16.7% Overall Rating: Experienced 4.1 / 5.0 About Zopa Founded way back in 2005, Zopa was ostensibly the UK’s first P2P lender. Today, the company is among the world’s largest. Based in London, Zopa is backed by Benchmark and Wellington Partners. It is that rarest of P2P lenders: a company available to people without lots of money, that doesn’t have sky-high rates and dubious
Loan Types: B2B Business Lending Availability: UK and USA Securities: Unsecured Loan amount: UK – £1,000 to £40,000; US – $2000 to $100,000 Interest: US – 1 to 13.5% fees for the first two months, 1% thereafter; UK – 68% representative APR, 2%-11% fees for the first month, 4% thereafter Overall Rating: Mediocre 2.4 / 5.0 About Kabbage Kabbage has been expanding out of Atlanta, Georgia since 2009, lending money primarily to web merchants. They were an early American lender to
Loan Types: Merchant Cash Advance Availability: UK (Accepting Payments By Card) Securities: Against Invoices Loan amount: £2,500 – £300,000 Interest: Not Fixed, High Overall Rating: Helpful 3.7 / 5.0 About Liberis Liberis is a strong lender with a simple business model. They quickly approve and finance business operations for many reasons. Businesses pay them back by giving them a portion of daily credit card sales. On days where they make less, they contribute is less, until the balance is paid. Businesses
Lenders on this list approve loans within 3 days, offer several types of unsecured financing, and are regulated to be providing such loans to small businesses.
Why Unsecured SMB Financing?
Online companies offering unsecured small business loans are a vital option in today’s world for many reasons. Many businesses are denied financing due to poor credit, stifling growth. Others have financing available through traditional lending institutions, but the lengthy process and demands of applying don’t allow them the money when they need it.
The above lenders have a much more efficient method of establishing credit worthiness, often based on a merchant’s business health and selling history, not a simple credit score. Proprietors who have been denied a loan through traditional lenders will find these methods fast, easy, and surprisingly affordable.
Which businesses use unsecured business loans as a financing solution?
The list of businesses that have benefited from Peer to peer business financing is enormous, and ever growing. Some lenders work with only web merchants. Others provide loans to brick-and-mortar institutions: restaurants, salons, markets, etc. Today, if your business makes money, you can find a lender in this burgeoning ecommerce market.
What Should a New Borrower Know?
The unsecured small business loan market is evolving quickly. Emerging on a broad scale around 2010 with lenders like ZOPA, billions of pounds have been lent to more than a million businesses industry-wide. P2P business lending adapts to meet the needs of broad and niche groups, like invoice borrowing and even large development loans. New users should look for trusted companies, clear terms, and ample user feedback from independent sources. For users like Elliott62 on ReviewCentre, services like Zopa beat all other providers. SalGal53 cautions against high interest rates, in an otherwise glowing testimonial.