Unsecured Business Loans

Unsecured loans sound risky, but they can provide protection for your business's assets. We are here to help you understand the tradeoffs with this and many other types of financing.

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Get easy unsecured business loans at competitive interest rates only at Biz2Credit.

Capital is the life-force of any business. You need capital not required for executing your day-to-day business operations. Banks and other financial institutions are there to provide you with suitable lending assistance. Unsecured business loans are those loans wherein a borrower does not require to place any personal or business assets as collateral against the loan. It is a suitable funding option for business owners, who do not want to submit any collateral against their loans. However, firms opting to obtain unsecured loans must have a good credit history. As the lending institutions provide loan with no property or assets to recover in case of default, the interest rates on unsecured loans are comparatively higher.

Unsecured loans are provided to entrepreneurs on the basis of their financial resources. These loans are granted on 5 C's of credit viz; character, capacity, capital, collateral, and conditions. A borrower's creditworthiness is assessed on these 5 C's. Character, capacity, capital, and collateral indicate the borrower's willingness to repay the loan as well as his / her repayment ability. Conditions refer to the borrower's requirement details as well as other economic factors.

Unsecured small business loans are suitable for entrepreneurs who want to obtain collateral free funding. This loan is provided to sole proprietorship firms, partnership firms as well as private limited companies. Besides, self employed individuals and professionals can also avail this loan. Also known as installment loans, these are useful for varied business requirements viz; working capital, equipment financing, business expansion, and business promotion. Many businesses also acquire unsecured loans for increasing their fixed business assets.

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Eligibility for Unsecured Business Loans

Unsecured small business loans are provided to business owners on the basis of the criteria mentioned below:

  • 21

    Applicant age

    The applicant must be 21 years of age.

  • 65

    Maturity age

    The maximum age of applicant at the time of loan maturity should be 65 years.

  • 3-4

    Business age

    The business should be at least 3-4 years old.

  • Good

    Credit Score History

    The business should have a good credit score and sound profit history.

Documents Required for Securing Unsecured Business Loans

  • Identity proof of the applicant (Passport / Voter ID / Driving License / PAN Card.)
  • Address proof of the applicant (Ration Card / Driving License / Voter ID / Registered Rental Agreement / Passport / Trade License / Sales Tax Certificate.)
  • Date of birth proof (Driving License / PAN Card / Passport / Birth Certificate.)
  • Bank statement of last 6 months.
  • Proof of continuation (Trade license / Establishment / Sales Tax certificate.)
  • Latest income tax returns along with computation of income, balance sheets and profit and loss statements of last 2 years.
  • Other mandatory documents (Sole Proprietorship Declaration / Certificate Copies of Partnership Deed / Memorandum of Agreement / Board Resolution.)

Documents Required for Securing Unsecured Business Loans

Biz2Credit provides you free loan consultation so that you can decide whether online unsecured loan can suitably serve your business purpose or not. Our loan specialists can help you choose the right loan product for your business

Have specific financing needs not listed above?

Have specific financing needs not listed above?

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1800-3002-0653