Getting business loans can be hard, especially for small and medium-scale businesses in the United States. One major reason for that is COLLATERAL.
Want to start a business? Need a larger marketing budget? Or more money to operate? The first thing that comes to mind is business loans, but without business assets like real estate, savings, or equipment to secure a loan, your options are very limited.
Even unsecured business loans and lines of credit still have caveats. And there really is no such thing in the US as a non-collateralized loan. If you don’t have assets, you might have to put your business on the line or work with your credit score to borrow funds.
This is why I wrote this article. There is a solution to getting non-collateralized business loans without crazy high fees or short terms. Here it is for the best unsecured business loans in the USA.
How Businesses and Freelancers can get the best business loans without collateral
You can get an unsecured business loan from several platforms, but one of the most promising is Resource Network. You can get a crypto-based business loan and free marketing as easy as setting up an account on a social network on the platform.
Resource Network provides uncollateralized credit of up to $50,000 for businesses needs that include:
- Web development
- Legal and accounting
- Remote healthcare
What is Resource Network?
Resource Network is a blockchain-enabled platform that serves small businesses and freelancers with fair credit and free marketing. The platform bridges the gap between businesses and business loans in a system where getting one is hellish for businesses that don’t already have assets to put down.
Resource Network works on the idea that registered businesses and self-employed persons in the US can get credit without collateralizing their assets, whether crypto assets or otherwise. On the platform, you leverage your seller reputation like on marketplaces and sites like Upwork, Amazon, Fiverr, and eBay to get interest-free loans.
It works similarly to setting up a seller account on Airbnb; you get credit opportunities based on how well you set up your profile. Your need for a loan does not affect your cash flow or current assets, and it comes with additional marketing to other businesses and users on the network.
Resource Network works for businesses, freelancers, and digital nomads, which is why it’s one of the best options for a loan.
The best part is that they don’t take an interest, unlike traditional banks or even lending on crypto platforms. Resource Network makes money from the transaction fees on its platform and, as such, does not need to charge interest on credit. To sign up, click here.
Getting uncollateralized credit is a two-step process that includes:
- Signing up on Resource
- Applying for credit (approval usually happens on the same day)
The caveat with getting credit from Resource Network is where you spend the money. Although you can spend the money on any of the needs you applied to spend it on; you can only use your credit on the Resource Network.
That means, if you took the loan for marketing, you have to purchase marketing services from other merchants on the network. The same applies if you took the loan for web development, legal services, and so on.
As a result, Resource can charge zero percent on interest while keeping the network active and business-friendly. Also, there are a ton of businesses registered on the platform, so it isn’t difficult to find expert services to handle your business needs.
You pay back your credit line by selling your products or services for R$.
One of the most difficult aspects of business is making sales and becoming profitable. A challenge in this area is finding customers to buy from you. Hiring a marketing agency costs a lot. To save money, many small business owners would take digital marketing courses to handle their marketing. Still, there are other business activities that take a lot of time, leaving little to nothing for marketing.
The brains behind Resource understood this. In addition to providing credit to businesses and freelancers, Resource Network provides free marketing through its marketplace.
To benefit from that, you would have to set up a “seller” account on the platform like you would on Amazon or Shopify, but easier; upload your products and the price in Resource Dollar, and start selling.
Resource Network does a lot of marketing on its own, which brings in more users that can come across your product on the platform. Those people can turn into converting customers that return.
What does the platform get in return? Just a little transaction fee for processing sales. So, you don’t pay if there are no sales. It’s a win-win.
I have shown you several benefits above, and here are some of the highlights:
- Zero-interest loans
- No collateral required
- Secure network on the Celo Blockchain
- Free marketing to attract potential clients
- A community ready to purchase from you
- Easy to access services from other businesses to ease your operations and growth
The interest rates of a business loan in the United States range from 5.50% to 99%, depending on the loan provider and available/approved collateral. Speaking of, collaterals are required 9.9 times out of 10.
The other option for Americans without collateral is a line of credit. That has an average interest rate of 9% – 24%. However, a line of credit might need to be secured by some equity, upfront charges, application fees that may range as high as $400, maintenance fees, and transaction fees.
With Resource, you avoid those shenanigans and can get a credit of up to $50,000 for your business needs without an application fee, maintenance fee, and interest. That makes it easy to access unsecured, uncollateralized loans at the click of a few buttons.
Furthermore, banks do not provide free marketing :man-shrugging:
|Interest rates that can be high||No interest charged|
|Interest, maintenance fees, translation fees, application fees, just so many fees||Small transaction fees when a sale is made|
|No marketing||Free marketing|
However, crypto loans need crypto collateral that can sometimes be as high as 80% of the loan value, not to mention interest rates. Although they are usually smaller than bank rates, they can still be a burden for small businesses.
On Resource Network, it costs zero interest rate and zero collateral to get a loan. You still get the benefit of no credit check with the best ease of credit access. Furthermore, your limit is not based on collateral but the satisfaction of your customers – replying to inquiries quickly, making sales, and getting great reviews.
|Crypto Loan Apps||Resource Network|
|Charges interest||No interest charged|
|No marketing||Free marketing|
Marketing and sales are not always easy, but possible when done right. You’re offered a platform on Resource. To leverage it to the fullest, ensure you do the following:
- Craft a convincing “store”
On Resource, you get a storefront to upload product and service details. Ensure that your product description is convincing and that you follow the best copywriting tactics to sell your product/service. Show the problem and how your product solves it; show the aftermath of using your product, i.e., what customers should expect. Sell and sell.
- Be Truthful
Several businesses die because of the lack of truth. If your product does not provide an outcome, do not market it as providing that outcome. If you do, you will end up with unsatisfied customers, which leads to you being unable to sell more products or get approved for more and bigger credit.
- Plan how you will use the funds and profit
Before you apply for a line of credit, plan how you will use the funds. Ensure that every item a part of the fund is sectioned to is relevant to your business needs.
In addition, plan how to grow your business further with the profit you make in Resource Network; you can create a sales forecast to predict how much you could make and make plans on how to use that fund, whether to grow the business or for other things.
Unsecured business loans are loans that do not require collateral. As a result, they are tougher to qualify for and carry higher interest rates than loans secured with collateral. Unsecured loans include term loans, lines of credit, invoice financing, and merchant cash advances.
Getting a line of credit may involve checking your credit score, history, and other criteria. Crypto loans help bridge the gap, but not so much because you still need collateral, and that’s where Resource Network comes in. Learn more here.
Unsecured business loans work like regular business loans, though the criteria may differ, depending on the lender. If you meet the eligibility criteria, you might be able to get the loan.
The popular options for the best-unsecured business loans in the US are banks and credit unions, but you’re more likely not to be able to find an unsecured business loan in such places. Other lenders such as technology firms and companies that leverage blockchain are easier to access and qualify for.
Yes. Small businesses that don’t have collateral can leverage unsecured financing. On Resource Network, you wouldn’t have to bother with building interests or losing your collateral. Rather, you get an enabling community of potential customers to help you grow revenue through service and product sales.
Furthermore, it is easy to obtain, approvals are quick, loan limits are based on customer satisfaction and not a credit score, no collateral, and no hidden fees.
Unsecured loans and credit aren’t easy to get despite not requesting collateral. Resource Network knocks providing unsecured credit out of the park. Only two steps and a few minutes can get you the money you need. Sign up to try it out.
If you have concerns or questions about it, reach out to me in the comments or through the contact form. You can also sign up for a consulting session to discuss what’s best for you, your business, and your finances crypto-wise.