Small business loans, including unsecured options.
Many small business loans today are based mostly on your business's cash flow: the money moving through your bank account each month. Some of these loans are unsecured, meaning you do not pledge a specific asset such as real estate or equipment to get them. Here is how they work, what they cost and what to watch for.
Full Port Financial is not a lender. Financing is provided by third-party funding partners.
See which small business loans may fit
No fee, and checking your options won't affect your credit. Full Port Financial is not a lender.
- Tell us the basics. Under a minute here, then a few more questions on our secure application.
- An advisor reviews it. They tell you which funding partners may fit, or tell you straight if none do.
- You choose. Partners see an anonymous summary only if you approve them by name.
- Rather talk? 1-800-MYMONEY. A real person answers.
What small business loans are
A small business loan gives you a lump sum that you repay, plus interest and fees, on a set schedule. Cash-flow lenders look closely at your recent bank statements, your monthly revenue and how much of that revenue already goes to other debt. Because they rely on your cash flow instead of collateral, they can often review a file faster and accept a wider range of businesses than a bank, usually at a higher cost.
Unsecured does not mean unconditional. Most unsecured business loans still ask owners to sign a personal guarantee, and many lenders file a general lien (a UCC-1 filing) on business assets. Read the agreement for both before you sign. A loan is also different from revenue-based financing, sometimes called a merchant cash advance, which is a purchase of future sales and not a loan.
Full Port Financial is not a lender. We help you understand which kind of financing may fit, explain the real cost of each offer in plain terms and, with your permission, connect you with funding partners that make these loans.
Often used for
- Businesses without real estate or equipment to pledge
- Covering payroll or inventory ahead of a busy season
- Taking on a new contract or order
- Hiring, marketing or opening a new location
- Refinancing more expensive short-term financing
- Owners who need a decision sooner than a bank can give one
This guide explains how small business loans generally work. It is not an offer. Our funding partners may offer this product, but Full Port Financial may not have a partner for every product in every state, and any terms come from the funding partner.
The terms that matter
Fixed payments on a set schedule. Cash-flow lenders often collect weekly or daily from your business account; banks usually collect monthly.
Interest plus any origination or other fees. Compare offers by APR and total repayment, not by the payment amount or a factor rate alone.
Unsecured loans do not require a specific asset, but most require a personal guarantee, and many include a general lien on business assets.
Ask whether paying early saves you interest or whether the full amount is due either way. It varies by lender.
What funding partners usually look at
Every funding partner sets its own requirements. These are the factors that come up most often.
- Steady monthly revenue deposited into a business bank account
- Time in business, since most lenders want several months to a few years of history
- How much of your cash flow already goes to other loans or advances
- Few overdrafts or negative-balance days on recent statements
- Personal and business credit history
- No open bankruptcy and no unresolved tax liens
What to have ready
You don't need these to make the first call. Having them ready later speeds things up.
- Your last 3 months of business bank statements
- A driver's license or passport
- A voided business check or bank letter
- Proof of ownership: your Schedule K-1 or IRS EIN letter
- If a partner asks: a year-to-date profit and loss statement
- If a partner asks: your most recent business tax return
Understanding what it really costs
Cash-flow loans usually cost more than bank or SBA loans, because the lender takes more risk and moves faster. Ask every lender for the APR, the total amount you will repay, every fee and the payment schedule in writing. In some states, lenders must give you a written disclosure of these terms before you sign; ask for it either way.
A weekly or daily payment can look small and still add up to a high cost. Multiply the payment by the number of payments to see the total, and make sure your cash flow can carry it in a slow month.
From first call to an offer, if a partner approves.
Tell us about your business
Your industry, your revenue and what the money is for. A few minutes on the phone with a funding advisor.
Compare your options
See options from funding partners that fit your profile, side by side, with your advisor walking you through them.
Choose and sign
If a partner approves, choose the offer that works for you and sign the funding partner's own agreement.
Questions, answered.
What is an unsecured business loan?
A loan that does not require you to pledge a specific asset, such as real estate or equipment, as collateral. The lender relies mainly on your business's cash flow and credit. Most still require a personal guarantee from owners, and many file a general lien on business assets.
What does a personal guarantee mean?
You agree to repay the loan personally if the business cannot. If the business defaults, the lender can pursue you for the balance. Read the guarantee carefully and ask questions before you sign.
Is a merchant cash advance the same as a loan?
No. A merchant cash advance, or revenue-based financing, is a purchase of a share of your future sales. It is structured and regulated differently from a loan and can cost more. We will always tell you which one an offer is.
How much revenue do I need?
Each funding partner sets its own minimum. Lenders that base decisions on cash flow generally want steady monthly deposits and several months of history. Call and we will tell you honestly what may fit.
Will checking my options affect my credit?
Talking with Full Port Financial does not affect your credit, because we do not pull credit reports. A funding partner may review your credit later as part of its own review, with your permission.
Does Full Port Financial charge a fee?
No. Full Port Financial does not charge applicants a fee to apply or to talk with an advisor. When a funding partner funds a business we introduced, the partner may pay us a commission.
Related guides
Talk it through before you decide.
Tell us about your business and what the money is for. An advisor will walk you through the options that may fit, with no pressure and no obligation.