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An ACH Loan Could Be The Perfect Funding Solution for Your Business

ACH Cash Advance or ACH Loan for Your Bar or Restaurant

Deciding if an ACH Loan is right for your business:

Applying for funding for your business can be quite daunting. Do you go the traditional bank loan route or work with an alternative lender? ACH Loans make Funding Quick and Easy

Well, traditional bank  financing can be quite tedious, tiresome, and unfortunately, not always the best solution.

Alternative lenders like Excel Capital Management can offer better funding products depending on your business’ needs such as an ACH Business Loan. Let’s take a closer look at how ACH  Loans work and how one could benefit your business.

What Are ACH Business Loans?

money exchange | Excel Capital Management To start, the primary purpose of an ACH Business Loan is to service the working capital needs of small to medium-sized business owners. They are a popular funding solution for businesses that do not accept credit cards or want a set repayment schedule.

Whether you need the working capital obtained through an ACH Business Loan for inventory purchases, new hires, employee training, additional office space, or almost anything else for your business, this funding solution can be extremely beneficial.

Unlike traditional business loans, funds from  ACH Business Loans are disbursed in as little as one business day after being approved for funding.

Additionally, this funding product does not require a minimum credit score to qualify, which means many up and coming businesses or businesses experiencing a rough financial period. Having collateral is not necessary to qualify, so business owners who have poor credit or lack business history can still apply for this great funding solution.

Lenders use the ACH (automated clearing house) system provided by many banks to set up automatic recurring payments to collect payments. This is the main set up for Unsecured Business Loans.

Payments are usually remitted via daily or weekly ACH’s and provide micropayments instead of one large payment due at the end of every month.  This ACH loan process reduces the risk for many higher-risk industries such as restaurants, car dealerships and trucking. Allowing alternative lenders to provide restaurant business loans, Cardealer funding and truck financing when most other traditional banks would not consider funding.

What Can an ACH Loan Be Used For?

cash 3 | Excel Capital Management

The great thing about ACH Loans is that they are a funding solution that can be used for businesses in all industries and for virtually anything as long as it pertains to the business itself. Here are some common uses of working capital acquired through an ACH Business Loan:

Business Permits & Licenses – Depending on your industry and state of operation, your business may be obligated to obtain and display certain permits and licenses. Renewing these documents can be costly, but are necessary since not having the proper documentation at any point of operation can cause major legal issues in the future.

Office Space & Business Locations – Maybe you need an office space or facility in order to properly operate. Business capital can be used to acquire new space or to improve and expand an existing location.

Inventory Purchases – Business capital acquired through an ACH Business Loan can be used for bulk inventory purchases so there is never a shortage of goods and products. Often times, purchasing inventory in bulk has it’s benefits and is much cheaper than individual purchases.

Marketing & Advertising –  Website development, paid ads, and social media marketing is a big job, and hiring a team of professionals can be pricey. Having enough business capital in order to cover these expenses can help tremendously.

Research & Development – Constantly developing your products, goods, and services is essential for staying ahead of the competition in your industry. Additionally, doing the proper market research and analyzing your target audience and consumers is key to knowing what your customers want. Business capital can certainly be used to help fund this process.

Product Manufacturing – Similar to research and development, product manufacturing may be a constant need depending on your industry and business capital may be needed during slow periods or when business is so great, that you must quickly meet the demand.

Employee Hiring & Training – Consider using the capital obtained through an ACH Business Loan to hire additional employees or to train existing staff on new business operations.

How are ACH Business Loans Paid Back?

The process of collecting payments on an ACH Business Loan is typically done through the Automated Clearing House (ACH) withholding method with fixed daily, weekly, or monthly payments. Lenders are able to withdraw a predetermined amount from you business’ bank account. The less common, but just as efficient, method is through a lockbox agreement. This process is a little more involved as all of a business’ daily credit and debit sales are deposited into a lockbox account with the lender withdrawing a predetermined repayment amount.

Deciding if an ACH Business Loan is Right for You

paperwork 2 | Excel Capital Management

Many business owners feel ashamed when it comes to applying for some sort of financing, but not to worry. Almost all successful businesses have reached out for additional working capital at one point or another. In fact, many businesses that are doing incredibly well obtain additional working capital through a business loan for continued growth and expansion. Here are a few steps to take in order to decide if an ACH Business Loan is right for you.

Identify Your Business’ Needs – First things first, why does your business need a loan in the first place? Sit down with your core staff members, financial advisors, or simply yourself to determine your business’ needs and how a quick business loan could help. Do you need to purchase inventory, hire additional staff, catch up on bills? Having a plan of execution once the loan is acquired is essential for success, as well as a plan for paying the loan back.

Do the Due Diligence – You may hear the phrase, “do the due diligence” a lot when researching quick business loans. In simpler terms, this means doing the necessary research before applying and accepting an offer with a lender. There are thousands of lenders and brokers out there – traditional and alternative. Don’t take everything at face value. Learn as much as you can about each lender you are interested in, compare pricing, read reviews, ask questions, and follow your gut if something just doesn’t seem right. You have the right to protect yourself and your business. The last thing you want to do is put your business in more of a financial bind or have setbacks. Research and knowledge is key. Do your due diligence.

Choose the Best Quick Business Loan Option – Maybe you did this when identifying why your business needs a quick business loan, but it’s a good idea to confirm again the type of loan product your business truly needs. Could your business benefit from an SBA Loan, Term Loan, Startup Loan, or something else? Speak with your chosen lender to go over all of your options and get a better understanding of how everything works.

Find Out What’s Needed To Qualify and Apply – All lenders have different business loan qualification guidelines. Depending on your business’ financial standing the amount of money you are looking to obtain, the documentation needed to be presented with an approval will vary. It is a good idea to at least have your last six months of business bank and credit card processing statements available, as well as additional financial documents like P&L and Balance Sheets and tax returns easily accessible.

What is the Application Process for an Ach Loan Like?

loan application | Excel Capital Management

Typically, most lenders that offer ACH Loans require minimal paperwork in order to present your business with an offer and approval. As mentioned, your business’ bank account can even be funded in as little as three business days! Here is a list of items to have ready when applying:

    • Completed application provided by your chosen lender
    • Four months of recent business bank statements
    • Four months of recent credit card processing statements (if your business accepts credit cards)
    • Clear copies of identification for all business owners
  • Voided check for the business bank account that is to be funded

*additional documentation may be requested prior to funding*

How An ACH Loan Can Help Your Restaurant or Bar:

While it is a trendy and thriving industry, owning and operating a bar or restaurant isn’t so simple. The business is constantly growing, changing, and will forever be one of the most competitive. These issues on top of the fact that business owners of all kinds will inevitably run into some financial hurdles overtime can be overwhelming to think about. So what do you do when your bar or restaurant is in need of working capital to fix cash flow issues? What do you do when the traditional big banks decline your business loan application? There are options. Introducing the ACH Cash Advance and ACH Loan or Unsecured Business loan.

As mentioned, all business owners will be in need of working capital at some point over their business’ lifetime. Whether additional funds are needed to fix your bar or restaurant’s cash flow issues during a slow period, train new wait staff, hire more bartenders, purchase inventory, or repair kitchen appliances, A quick Business loan can help.  Two popular reasons many bar and restaurant owners reach out for capital is due to the turnaround of employees and the fact that their business may be cyclical.

For instance, employees in the bar and restaurant industry do not tend to stay at a job very long due to constantly looking for additional or better work opportunities. It’s a fast paced industry that many work in on the side to make extra cash. The causes many issues for business owners who can’t compete with other bars or restaurants that pay better. Additional capital could help you to give deserving employees a raise or promotion. Similarly, many bars and restaurant are cyclical, meaning they are open 2 to 4 days per week. Thus, generating enough revenue to pay rent for the business and cover expenses and payroll can be tough.

To acquire working capital from a traditional bank via a business loan is no easy task. BIg banks require lengthy applications, lots of paperwork, and tend to take a few weeks for processing and an approval or decline. Not to mention, due to the unsteady industry, an approval can be even more difficult to receive. (Check out our recent blog, “Why Business Loans Declined For 3 Reasons” for more on that).

Luckily, alternative financing is available, and the most popular financing solutions tend to be the Merchant Cash Advance or ACH Loan. The primary purpose of a Merchant Cash Advance or ACH  Loan is to service the financial needs of small to medium sized business owners. Unlike traditional business loans, funds from a cash advance or ACH Bank Loan disburse in as little as three to four business days. They do not require a minimum credit score to qualify, therefore, many rising businesses or businesses that run into a rough patch over the years opt to use this financing solution.

Another benefit is that Merchant Cash Advances or ACH Bank Loans do not require any collateral to qualify, so business owners who have little to no collateral (or poor credit or limited business history) to offer can rest assured that nothing will be taken from them. Finally, since ACH Cash Advances and ACH Bank Loans do not necessarily have fixed payments, business owners who run into financial troubles over time do not carry the burden of large monthly payments, balloon payments and do not accrue over time (since they are classified as a purchase of future sales at a discount).

When it comes to paying back your ACH  Cash Advance or ACH Loan, there are two common collection processes. With a Merchant Cash Advance, payments come from a set percentage of credit and debit sales. With  ACH Loans (this financing product is typical for businesses that do not accept credit cards or want a set repayment schedule) the collection process is done through the Automated Clearing House (ACH) process. collection process is through the Automated Clearing House withholding method with fixed daily, weekly or monthly payments. This method allows the lender to withdraw a predetermined amount from your business bank account. Lastly, a lesser common method of collection is through a lockbox agreement. With this method, all of a business’s daily credit and debit sales are deposited into a lockbox account, in which the agreed upon repayment amount is removed by the lender.

Best Unsecured Business Loans: Options, Rates, and How to Qualify For 2024

Unsecured Business Funding: At a Glance

Looking for capital? An unsecured business loan may be just what you need. 

When it comes to acquiring a business loan from a traditional bank, many business owners find themselves in a sticky situation due to:

  • Heavy approval requirements, and
  • Long time frames to obtain that funding

Unsecured business funding was created to help overcome these common issues with traditional business loans and make quick, small business funding possible.

Read on to learn more about your unsecured business loan options as well as everything there is to know about how they work, how to qualify, and which options are best for you. 

Apply for an unsecured business loan from Excel Capital

With no personal guarantees or collateral required as well as funding (and approval) in as little as 24 hours, an unsecured small business loan with Excel Capital can give your business the funds it needs to move forward.

Complete our online application and see how much you can be approved for: Apply Now


Types of Unsecured Business Loans: 5 Options

types of unsecured business loans

When it comes to unsecured business funding, you have four major options.

Excel offers competitive rates and lightning fast approval times on each unsecured option, offering both flexibility and convenience.

Here are the four main unsecured business funding options:

1. Split Funding (AKA Merchant Cash Advance)

merchant cash advance

Complete our short application to apply for a merchant cash advance: Get Started

In split funding, or a merchant cash advance, the lender applies a split to your receivables until the funding is paid in full.

The specifics of the split or percentage held back of your Visa, Master Card, or other credit card processor volume is based on the contract that is agreed upon prior to getting funded.

That agreement is generally underwritten based on your credit card processing volume coupled with your gross monthly revenue deposited into your business bank account.

All merchant cash advances utilize your future credit card sales to calculate the repayment pace of the advance and there are 3 ways to provide this type of unsecured business funding.

Click below to learn about each type of merchant cash advance:

1. Merchant Cash Advance: A Direct Split with Your Credit Card Process Provider

This is the most seamless type of merchant cash advance.

In a merchant cash advance, you utilize one of our friendly credit card processors to divert the agreed-upon percentage to us and applied to the outstanding balance whilst you receive the remainder of the credit card processing sales directly in your existing bank account like you normally did before receiving the business funding.

This split happens every time you batch out your terminal and you receive no delay in deposits and you repay at the pace of your business. This requires your process allow us to place as split on your credit cards sales.

The beauty of a direct split is that it gives a funding option to business owners who have a high amount of NSF’s (non-sufficient funds) or overdrafts or have a very volatile sales cycle.

2. Lockbox Funding: A Separate Account with Automatic ACH

This method is utilized when a business does not use one of our friendly credit processors and does not want to switch their existing merchant processing provider to facilitate the funding.

A lockbox is good because many merchant processors have early termination fee’s and this avoids paying them to get split funding. How a lockbox works is a bit more complex than a direct split on your credit card processor. We set up a lockbox account also known as a bridge account or you. This bridge account is an actual bank account where you receive online login credentials and a bank letter.

This account is solely used for splitting your credit batches between the funding institution and your business account. Once a batch is received into that account it is designed to automatically ACH the specified percentage to the corresponding accounts.

Due to the process associated with this type of funding, there is typically a 24–48-hour delay in the time it takes the money from your batch to hit your business bank account.

In order to set up a lockbox you need to follow these 3 steps:

  • Sign the lockbox form provided on the funding agreement authorizing the lockbox account
  • Receive the bank letter created upon receipt of the lockbox form.
  • Call your credit card provider and tell them you want to switch where your credit card processing activity is being deposited.

Usually, they can do this over the phone, online or will ask you to complete and sign a bank change form and have it return to them via email or fax which will require you to attach the copy of the bank letter to the executed bank change form.

This can take up to 48 hours depending on your credit card processor.

3. Variable ACH: A Manual Repayment Method

This method is used to collect payments when a business owner does not work with a “friendly” merchant processor and does not want to incur the 24–48-hour delay in deposits. The way this works is pretty straightforward.

Our collections department logs into your merchant processing portal on a daily basis to see what the last batch was and then collects the specified percentage via ACH from the business bank account. This type of split funding requires access to your merchant processing online account at all times or else it would constitute a default.

When a deal is in underwriting it will be determined if this option is available based on a formula that is heavily weighted on the average ledger balance in the bank account. Unlike direct split, if a business has many overdrafts in the account they will be declined for a variable ACH but can still get approved for a direct split or lockbox method.

What’s Needed to Qualify for Split Funding?

  • You must accept credit cards with a minimum of $5,000 per month in credit card sales.
  • You must be in business for at least 3 months
  • You must be a US citizen or have Visa

What Paperwork is Needed to Qualify for Revenue Based Factoring?

  • A signed and complete application
  • Four months of recent business credit card processing statements
  • Four months of recent bank statements

All varieties of split funding are derivatives of unsecured business loans since they are not technically loans and advances of future sales at a discount.


2. Revenue Based Factoring

revenue based factoring

Complete our short application to apply for an unsecured business loan:Get Started

This type of funding was created through the need for unsecured loans and other funding products for businesses that do not accept credit cards.

Prior to 2008, there was no solution to this problem and all unsecured products (other than split funding) were based on credit card sales. Due to the high funding demands for businesses that don’t accept credit cards, revenue-based factoring was created and ACH loans were born.

The way this type of funding is structured is more based on overall revenue or cash flow. According to the contracts most institutions purchase a set percentage of all your future sales which you as a business owner then sell at a discount.

This percentage of future sales is then estimated over the course of an anticipated term, generally three to 24 months. This future revenue is then collected in a variety of payment options generally on a daily, weekly, bi-weekly or even monthly repayments.

In most instances, it will be daily or weekly and for better-qualified clients, it will be bi-weekly or Monthly. Within the language of the contracts, you have the right to adjust the payments based on your revenue. So if you have a drop in revenue you are allowed to reduce the payment obligations.

This type of funding is usually approved in 24 hours and can fund same day if the stipulations (see the list of items that may be needed) are met. According to the contract, it follows the same rule of thumb as split funding or a merchant cash advance.

A lien may be placed against your future receivables but most institutions do not require any personal guarantee or collateral and are considered unsecured business loans.

Revenue-based factoring will usually subordinate behind any other pre-existing funding you may have and will usually be the last creditor to collect in the case of a bankruptcy or liquidation.

What’s Needed to Qualify for Revenue Based Factoring?

  • You must accept credit cards with a minimum of $5,000 per month in credit card sales.
  • You must be in business for at least 3 months
  • You must be a US citizen or have Visa
  • A signed and complete application
  • Four months of recent business credit card processing statements
  • Four months of recent bank statements

What Paperwork is Needed to Qualify for Revenue Based Factoring?

  • A signed and complete application
  • Four months of recent business credit card processing statements
  • Four months of recent bank statements
  • Financial statements may be required from time to time.

3. Unsecured Business Line of Credit

unsecured business line of credit

Complete our short application to apply for an unsecured business line of credit:Get Started

An unsecured business line of credit revolves based on your outstanding invoices and receivables.

Unsecured business lines of credit are not technically unsecured business loans but a line of credit which were designed knowing that many merchants want to have the ability to prepay and draw down on capital as they desire instead of being obliged to take a full funding amount and have to repay it based on the receivables.

The way these products work is, they take into consideration what invoices and receivables a business has outstanding along with the cash flow and revenue to determine a sustainable business line of credit.

The process is relatively straightforward with approvals being issued in about 48 hours. In order to see if your company is eligible for an unsecured line of credit, you have to submit the same application and bank statements as listed with spilt funding and revenue base factoring, but you also must meet the criteria below.

What’s Needed To Qualify for Unsecured Lines of Credit?

  • You must have a business bank account
  • You must be a US citizen
  • Generally, you must maintain an average ledger balance of $1,000 in your business bank account
  • 50k + in Yearly Revenue
  • 1+ years in business
  • Can not be a non profit
  • 540+ FICO
  • Can not have more than 3 Negative days a month in your bank account

What Paperwork is Needed to Qualify for Revenue Based Factoring?

  • A signed and complete application
  • Six months of recent business credit card processing statements (if you accept them at your business)
  • Six months of recent bank statements
  • Financial statements may be required from time to time.

4. Short Term Loans

short-term loan

Complete our short application to apply for a short-term loan: Get Started

These types of unsecured small business loans are created to help business owners fill immediate, short-term needs or cash flow issues. This type of funding is structured as a loan with predetermined payment schedules and amounts. With this type of funding its very important to review the contract as the language varies from institution to institution.

Many bigger lenders may require a personal guarantee that can include assets. While some other lenders may include a limited personal guarantee that allows the lending institution to go after personal assets in cases where fraud is committed.

In many cases, it is very hard to prove fraud but in a business where the service is money the lenders use this language as a way to protect themselves against potential fraud.

What’s Needed to Qualify for a Short Term Business Loan?

  • Completed Application
  • 4 months of most recent bank statements
  • 4 months of most recent processing statements
  • Minimum of 2 months in business
  • Minimum of $7,500 in monthly revenue
  • Funding over $75,000 may require additional documentation

What Paperwork is Needed to Qualify for a Short Term Business Loan?

  • Most recent business tax return
  • P&L
  • Balance Sheet

This type of loan doesn’t require a lot of paperwork, funds quickly, and can be used for almost any business purpose. Short-term loans are perfect for purchasing inventory, filling gaps between accounts payable and receivable, as well as any emergency repair or maintenance expenses that may pop up. These loan products generally have repayment terms of 3 to 24 months.

As the alternative lending space is developing and expanding new unsecured business loans are constantly being created. This does not encompass all unsecured business finance products but covers a majority of what we see being utilized by small business owners as well as Excel Capital’s most popular unsecured business funding options.


Why Unsecured Business Funding?

Most banks will only approve you for a loan if your business is at least two years old, the loan is secured with collateral, and you can show positive cash flow and profit on your tax return.

The problem? Most business owners (over 70% in our experience) under 2 years in business show a loss due to startup costs and investments.

Not to mention, your business needs to have great to excellent credit.

This can be problematic for new businesses who have yet to establish themselves (and even seasoned business owners during difficult times).

Many business owners have one or more of the below issues:

  • They haven’t been in business long enough
  • No collateral to offer
  • Low credit scores

So, what do you do? That’s where unsecured business loans can be invaluable.

How Do Unsecured Business Loans Work?

secured vs unsecured business loans

Unsecured business loan amounts typically range anywhere from $10,000 to $2,000,000 depending on the cash flow of the business being underwritten.

They don’t require you to put down any form of collateral. Hence, making them unsecured for the lender. However, you still need to meet certain basic requirements.

The amount of the loan is dependent upon your:

  • Business’ credit score
  • Average monthly bank balance, and
  • Annual revenue

Unsecured business loans will typically range between 75% to 150% of your last 3 months average gross monthly sales. That means if you deposited $100,000.00 on average for the past 3 months, your business can qualify for $75,000.00 to $150,000.00. Terms typically range between 6 and 18 months.

Keep in mind that if a cash amount is not approved, you as a business owner may instead be offered a line of (unsecured) credit.

In addition, while secured business loans require collateral, such as your house, car, 401k, inventory or account receivables, unsecured loans only require you to pledge limited collateral such as your future sales that only apply to your business.

In fact, funding contracts explicitly state that if you stop having receivables and you go out of business, you’re not entitled to pay back the business loan.

This is one of the primary benefits of an unsecured small business loan. If your business hits a rough patch and you has trouble making payments, or default on the loan, there’s no collateral to lose.

In fact, we’ve found this process to be largely ineffective for ourselves as a lender as well.

It’s our goal to work with you, not against you. So, if you do struggle to make loan payments, we’ll help find you a solution to correct the problem, improve your working capital, and get current once again.

Unsecured Business Loans: Pros and Cons

So far, we’ve touched on some of the benefits of unsecured business loans. Now, let’s cover both the pros and cons of this powerful financing vehicle. 

There is no perfect type of loan for all businesses, and as we discussed earlier there are several different types of unsecured business loans. However, there are some overarching qualities to all unsecured business loans, pros and cons, that you should be aware of. 

Here are the pros and cons of unsecured business loans. 

Pro: Funding is fast and simple

The approval process for traditional bank loans is notoriously long and difficult. When all is said and done, it can take well over a month from start of application to finally get an approval, and longer still to get funded. 

With unsecured business loans, the process is quite the opposite. Assuming your documents are all in order, you can not only be approved within 24 hours, you can also receive the funds in your bank account within another 24 hours. 

That’s a total of 48 hours, lightning-fast compared to the traditional bank lending process. 

Pro: Loan amounts are large

Secured business loans amounts are typically tied to the collateral you use to secure the loan. That means you’ll rarely receive a loan for greater than the value of the asset. 

With unsecured business loans, that’s not necessarily the case. You can be approved for much more than you would have been approved for with a traditional bank loan in some cases. 

Pro: No hard collateral

One of the greatest benefits of unsecured business loans is the fact that they don’t require the kind of hard collateral that traditional bank loans require.

It’s important to keep in mind that a kind of soft collateral may still be required, typically in the form of a promise of future business earnings in the case that you default on your loan. 

However, you’re not required to pay this back in the case that you go out of business, so it doesn’t function the same way that hard asset-based collateral does. 

Con: Higher interest rates

There are several pros to unsecured business loans, and they can be used for virtually any business purpose. However, like all business funding vehicles, they have their downsides as well.

With unsecured business loans, that really comes down to their higher interest rates.

Lenders need some sort of way to ensure they can get their loan back. To that end, they use things like collateral, personal guarantees, and interest. 

Because unsecured business loans don’t have collateral, lenders need another way to make sure they can at least make their loan amount back.


Unsecured Business Loan Rates and Payment Terms

Unsecured business loans rates are distinctly different when compared to traditional bank loans.

Clearly, the lack of a personal guarantee or collateral is a huge upside, however, as you might imagine, this upside comes with some downsides.

The unsecured business loan rates and terms can be up to 18 months with payments being due either monthly, weekly, or daily depending on the loan terms.

In addition, unsecured business loan rates vary depending on risk. They can be as low as 14% on unsecured business loans but they can also go much higher as well. A big upside to this, however, is that we can get you approved even if you have a bad credit score and have delinquent or even maxed out tradelines.


How to Qualify for an Unsecured Business Loan

how to qualify for an unsecured business loan

Requiring both 2 years of business history and a stellar credit rating, traditional bank loans are out of reach for many business owners.

However, if you find yourself in that boat, an unsecured business loan may just be the perfect solution to your funding needs.

According to the Mission Asset Fund, business loans are declined most often due to “having no credit history or a low credit score.”

Despite this, banks still prioritize credit scores and use an outdated credit-first model for approving (or denying) you for a business loan of any kind.

Rather than dwelling on factors that truthfully have little to do with the state of your business now, we like to focus on the present by looking at the business’ current conditions.

With Excel Capital, there’s no minimum credit score required to qualify for one of our unsecured loans.

When determining if your business is right for an unsecured business loan, our underwriters analyze a variety of metrics such as big data, historical risk models, and trade line distribution to determine its unique growth potential instead of just looking at your credit score.

Having said that, before we can qualify you for a loan, there are 2 qualifications that you must meet:

  1. Records showing at least $10,000 of monthly gross revenue
  2. Proof that you’ve been in business for at least six months

Get an Unsecured Business Loan from Excel Capital

A whopping 82 percent of small businesses fail from running out of cash. Is your business in danger of running out of cash flow?

Until recently with the introduction of unsecured business finance, obtaining unsecured business loans was a long, cumbersome process that required trails of paperwork and inconvenienced your day-to-day business operations.

So, we decided to fix that by creating an expedited process to allow small business owners to get through the application process as quickly as possible so you can get back to focusing on what matters– your business.

With Excel Capital, getting the cash your business needs to maintain growth– or simply get through a rough season– has never been easier.

You’ll get an approval decision from us in less than 24 hours and, pending approval, funds will be deposited within your account in as early as 24 hours as well.

Imagine what a surge of cash could do for your business, from providing the funds you need to purchase much-needed equipment to paying off past-due vendors, and virtually anything else in between.

Complete our online application and see how much you can be approved for: Apply Now

Frequently Asked Questions (FAQ)

What can you use an unsecured business loan for?

An unsecured business loan can be used for a variety of purposes, from paying for payroll, emergency expenses, supplies to prep for a seasonal surge, and more. 

Do banks provide unsecured business loans?

Banks don’t typically provide unsecured business funding of any kind. To obtain a loan from a bank, you’ll generally need a credit score of 680+ as well as something to guarantee or “secure” the loan via collateral such as a business vehicle or cash reserve. 

What happens if you default on an unsecured business loan?

If you default on your loan, a late payment fee may be charged and your interest rate may increase, depending on your agreement. 

However, with no hard collateral requirements, your property and other hard assets such as vehicles or cash savings can’t be taken. That’s one of the major benefits of an unsecured business loan. 

Alternatively, with a traditional bank loan, collateral such as business property is required to secure the loan. That means if you default on your loan the property can be seized to collect on the defaulted debt. 

What is the interest rate on an unsecured business loan?

With no collateral requirements on unsecured business loans, interest rates tend to be higher compared to traditional bank loans. 

Unsecured business loans can go as low as 14% but can be higher, all depending the level of risk factors involved, with terms up to 18 months. 

Can I get a business loan without a personal guarantee?

Yes, you can obtain an unsecured business loan without a personal guarantee. It all depends on your agreement. Depending on your terms, a personal guarantee may or may not be required. 

Can I qualify for a business loan?

Anyone can be approved for an unsecured business loan provided their business is in good standing and they meet the basic credit requirements (500+ score). 

With Excel, you can be approved for an unsecured business loan even with bad credit, as we take a more balanced approach to determining your eligibility for funding by reviewing your entire business’ health. 

What credit score is needed for an unsecured business loan?

Traditional bank loans require very high credit requirements (680+) and have a long and tiresome approval process. 

However, just a 500 minimum credit score is required for our unsecured business loans, making them far easier to be approved for than a traditional loan.