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Small Business Resources > What is an Unsecured Small Business Loan?

What is an Unsecured Small Business Loan?

Definition of: Unsecured Small Business Loan

An Unsecured Small Business Loan is an advance of funds that does not require that the borrower put up any collateral (their own property or assets) in order to assure that the loan will be repaid. Instead the small business loan is based mainly on the credit history of the applicant. Sometimes these loans are also known as 'signature loans' because the bank has nothing but your credit history and signature. Plus your personal assets cannot be repossessed, a great advantage to this kind of loan.

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