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Comparison

Secured vs unsecured: what you pledge changes what you pay.

Almost every business funding conversation eventually reaches this fork. The trade is straightforward: pledge an asset and the cost falls, or keep the asset and accept tighter underwriting.

✓ Checking what you qualify for does not affect your credit score.

LowerSecured cost
FasterUnsecured speed
650FICO either way
UCCUsually filed

Side by side

Backed bySecured: a specific asset such as equipment, property or receivables. Unsecured: no specific asset.
CostSecured: lower, because the lender's downside is covered. Unsecured: higher.
SpeedSecured: slower, the asset must be valued. Unsecured: same-day decision.
Amount availableSecured: can exceed the unsecured ceiling where the asset supports it. Unsecured: capped by revenue — our term loan is limited to 15% of annual revenue.
Personal guaranteeCommonly required either way.
UCC filingUsually filed either way, which is not the same as pledging a specific asset.
If you defaultSecured: the pledged asset is at risk. Unsecured: the lender pursues the guarantee.

The short answer: Unsecured is the right default for working capital under $350,000 because speed matters and the cost gap is smaller than most people expect. Secured earns its complexity when the asset is the thing being financed — equipment, vehicles, property.

The distinction people miss: UCC filings

A UCC-1 filing is a public notice that a funder has an interest in your business assets. It is filed on most business funding, including products described as unsecured, and it is not the same as pledging a specific asset as collateral.

It matters because an existing UCC filing is visible to the next funder you approach, and it affects what they will offer. This is one of the first things underwriting checks.

Our products are unsecured and carry a personal guarantee with at least 50% ownership required. See the full requirements →

How it works

1. Apply in minutes

A short application. No impact to your credit score to see what you qualify for.

2. Same-day decision

We review revenue, time in business and bank activity — not just a credit score.

3. Review your terms

You see the amount, the term and the total cost before you sign anything.

4. Funded next business day

Money in your account, typically the next business day after signing.

Common questions

Do I need collateral for a business loan?

Not for our products. Both the line of credit and the term loan are unsecured, with a personal guarantee.

Is a personal guarantee the same as collateral?

No. A guarantee makes you personally responsible for the debt; collateral pledges a specific asset the lender can seize.

Will a UCC filing hurt me?

It does not damage your credit, but it is visible to other funders and affects what they will offer.

Is secured always cheaper?

Usually, but not always by much on smaller amounts — and it is slower.

What ownership is required?

At least 50%. No sole proprietorships and no non-profits.

See what you qualify for

Same-day decision. Applying takes a few minutes and will not affect your credit score.

Apply Now →