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Key takeaways. Secured business loans require collateral to back the loan. Unsecured business loans typically require a personal guarantee, while secured loans may have lower interest rates and ...
Secured loans require collateral, such as business equipment or real estate, and come with more flexible terms and lower interest rates. Unsecured loans do not require collateral but often require ...
Loan type. Description. Unsecured business loans. These loans don’t get secured by collateral. They may come with higher rates or shorter repayment terms and might even require a personal guarantee.
On the other hand, secured business lines of credit may have much lower credit limits than unsecured business loans or lines of credit. For example, some banks might limit a secured line of credit ...
A commercial and industrial loan (C&I loan) is a loan to a business rather than a loan to an individual consumer. These short-term loans may have an interest rate based on the SOFR rate or prime rate and are secured by collateral owned by the business requesting the loan.
A secured line of credit can have more flexible requirements and lower interest, but an unsecured line doesn’t require collateral, making it appealing to businesses with little to no assets ...
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