Customized financing to consolidate high-interest debt or fund major purchases or expenses.
WAYS TO USE YOUR LOAN
Tailored commercial financing that supports all your business needs to help you grow quickly.
Tailored for entrepreneurs that want to establish additional active and passive income streams.
Customized financing to consolidate high-interest debt or fund major purchases or expenses.
While various loan options are available for small enterprises, they fundamentally fall into two categories: secured and unsecured. A secured loan necessitates collateral, such as real estate, inventory, or equipment, to back it. Should you default on a secured loan, the lender has the right to seize the collateral and liquidate it to recover losses. Consequently, secured loans often offer more favorable interest rates than unsecured ones.
Conversely, an unsecured loan lacks collateral backing and relies heavily on your creditworthiness and other financial metrics to determine eligibility. Given the heightened risk for lenders, unsecured loans typically feature higher interest rates. Small business loans can be secured or unsecured, depending on the lender, the type of loan you choose, your credit score, and other factors.
As you stand on the precipice of seizing new professional opportunities and elevating your business, it is crucial to delve into the advantages and disadvantages of secured and unsecured small business loans. This exploration will equip you with the knowledge to make the most informed financial decisions for your enterprise.
Benefits
Drawbacks
Benefits
Drawbacks
BHG Financial offers secured commercial financing up to $500,0001,2, which you can use to reach your business objectives. Our lengthy repayment terms of up to 12 years1 mean you can consolidate business debt, buy equipment, make acquisitions, and expand your operations with affordable monthly payments. With access to our U.S.-based concierge service six days a week, you can rely on our dedicated team to serve your needs at every step.
It only takes seconds to view your personalized estimate using our payment estimator.
The choice between using a secured or unsecured loan depends on your financial situation, including your credit score, business income, and access to business collateral. Secured loans may make sense for borrowers willing to commit collateral to back the loan, while borrowers with exceptional credit scores may be more comfortable with the terms and interest rate of an unsecured loan.
Small Business Administration (SBA) loans may be secured or unsecured, depending on the loan program and the size of the loan. Some smaller loans under $25,000 may not require collateral, while larger loans may require the borrower to leverage their home or other assets along with a personal guarantee of repayment.
Secured and unsecured loans can both help build credit if the lender reports payments to credit bureaus. Some lenders won’t report loan payments to credit bureaus as long as they’re paid on time, but missed payments and loan defaults may be reported.
Payments on a business loan are generally not tax deductible, but some businesses may qualify to write off interest on business loans. Before writing off any expense on your taxes, it’s important to consult with a legal or tax professional.
Not all solutions, loan amounts, rates or terms are available in all states.
1 Terms subject to credit approval upon completion of an application. Loan sizes, interest rates, and loan terms vary based on the applicant's credit profile.
2 BHG Financial business loans typically range from $20,000 to $250,000; however, well-qualified borrowers may be eligible for business loans up to $500,000.
Business Loan Repayment Example: A $94,695 commercial loan with a 9-year term and an APR of 14.8% would require monthly payments of $1,591.
No application fees, commitment, or impact on personal credit to estimate your payment.
For California Residents: BHG Financial loans made or arranged pursuant to a California Financing Law license - Number 603G493.