Does OnDeck Offer Unsecured Business Loans? #simple #business #plan
#unsecured business loans
Does OnDeck Offer Unsecured Business Loans?
OnDeck loans are secured by a general lien on business assets but are not dependent upon the value of specific assets, unlike traditional bank loans
Interested in financing for your business? Get a true loan decision in minutes with OnDeck.
Many small business owners are interested in a loan or line of credit for their business, but don’t have enough specific collateral that a bank may require, such as real estate, inventory or other hard assets.
Banks generally underwrite loans based on the value of specific assets and take liens on those specific assets. In this way, the bank can significantly reduce its lending risk. This process can be difficult for business owners whose assets are not valued highly by a bank or whose assets are difficult to value or sell.
Why are OnDeck loans different?
OnDeck makes loan approvals to small businesses based on business fundamentals like cash flow, not based on the value of business assets. OnDeck has a proprietary way of determining who it lends to – the OnDeck Score® – which focuses on the overall health of your business. The existence of specific hard assets doesn’t factor in our analysis of business health. When a small business takes a term loan from OnDeck, a general lien is placed on the business’s assets until the loan has been paid off (OnDeck lines of credit are unsecured). The business owner is also required to give a personal guarantee for the loan, but there is no lien on the owner’s personal assets. In this way, business owners can get funding from $5,000 – $250,000 in as fast as one business day without needing a specific amount of real estate, inventory or other hard assets and without needing to have their specific assets appraised and valued.
So if you’re a business owner that has a strong business but you’re not sure about the value of your specific assets or collateral, consider applying with OnDeck and you could get a decision for your business in minutes.
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