Unsecured Business Funding in Canada
A financial funder takes many things into account when reviewing a business funding application — including what collateral will be required.
With SharpShooter’s unsecured business funding, small businesses who don’t want to put their valuables at risk — or don’t have valuables to use as collateral — can qualify for funding. We base small business’s qualifications for funding on their overall business health.
Unsecured business financing is not backed by collateral, making it fundamentally different than most traditional long-term business funding programs. Since assets do not back this funding, it does not place any liens on a business.
SharpShooter unsecured business funding are an attractive option for businesses looking to mitigate some of their financial risks.
What You Need to Know About Unsecured Business Funding:
What is an Unsecured Business Funding?
Unsecured funding provides less risk and better flexibility for small businesses. Quite simply, unsecured business funding are small business funding that aren’t backed by collateral. Small businesses tend to lean towards this option because many don’t have valuable assets just yet.
Collateral is an asset — like real estate or an entire business itself. As a result, a funder can assume legal ownership of an asset if a borrower is unable to repay their funding.
Secured funding aren’t unique to business funding. Most mortgages are considered secured funding since the funder usually has the right to assume ownership of a house if an owner fails to make regular payments.
Common examples of unsecured funding you may come across are credit cards and student fundings. Businesses opt for these funding when they don’t have assets to leverage or require their assets to continue with day to day operations.
How Does SharpShooter’s Unsecured Funding Work?
Standard business funding requires security in the form of collateral or another offset. This, of course, means risk. If you cannot meet the terms of the funding agreement, you lose your collateral. Unsecured funding is not like this.
SharpShooter will work closely with you to assess your business needs and identify the right funding package for you. Then, we will assess your future transactions and the receipts you can expect to draw from.
These projected incoming earnings will be used to outline a flexible repayment schedule that suits your business. If you need funding in a hurry but are wary of the potential risk of a traditional funding provider, SharpShooter is the funding team you want to work with.
When to Use Unsecured Funding:
There is no warning when a sudden cash shortage may strike, and there is no telling the damage that such a thing might do to a business.
At best, you’ll end up frustrated and behind. At worst, you could lose serious ground on your competitors. Unsecured funding provides the quick infusion of cash you need to get an edge over the competition without delay or risk.
There are certain instances when unsecured funding will be the best choice for your business:
You Don’t Have Assets: A lot of small businesses don’t have assets to use as collateral, which can make it challenging to attain financing through an institution. This is when unsecured business funding come in handy.
You’re in a Bind: Sometimes you need funding to pay timely fees like rent or payroll and don’t have the time for a lengthy approval process. In this case, you’ll want to opt for unsecured business funding from SharpShooter — we provide fast approval rates and funding.
You have Good Credit: If you have good credit but don’t want to deal with the wait and strict requirements involved with obtaining funding from an institution, unsecured business funding are a great option for you. We base our financing on your ability to pay off the funding, not your assets.
You Need Money for a Specific Purpose: When you have a specific purpose (i.e to meet payroll, meet office rent) you have a set idea of how much money you need. With unsecured business funding, you can take funding of that amount and make sure you can pay it back based on the profit you are expecting.
What’s the Difference Between an Unsecured & Secured Business Funding?
The main difference between an unsecured and secured business funding is the need for collateral. As mentioned, secured business funding usually require some sort of collateral (any substantial asset) to be leveraged in the case that you can’t pay back the funding.
For example, your office space may be collateral so that it can be seized in the case of unsatisfactory repayment.
With unsecured funding, collateral doesn’t need to be presented. This makes it the best choice for small businesses who either don’t have these assets or just can’t afford to put them on the line for financing.
Secured funding typically are a lot more limiting and provide a set amount to be spent on an approved aspect of your business. Unsecured funding does not come with these limitations. It allows businesses to decide how much or little funding they require, and where to spend it to get their business back on track.
The Benefits of Getting Unsecured Business Funding
Unsecured business funding are an attractive option for small business owners who need a quick infusion of cash to pay off outstanding expenses, cover financial gaps and move onto the next project.
There are many different types of small business financing programs available today. That said, unsecured business funding are appealing to small business owners for various reasons:
Considering the fact that these funding don’t require you to present collateral, they are a lot easier to obtain than other funding. You are far more likely to qualify for this funding than other types of funding like long-term financing.
Since it is a lot easier to be approved for this funding, you get your approval a whole lot faster. It’s also worth mentioning that unsecured funding requires a shorter application process as less paperwork is needed.
- Less Risk
This is an option for funding that doesn’t ask you to risk your valuable assets.
- More Leeway
Sometimes businesses who opt for secured funding get stuck owing back large amounts of money. With an unsecured option, you avoid getting trapped in lengthy repayment terms. This solution provides businesses with funding that is realistic for them to repay in a short period of time.
Unlike secured funding, this funding option has no terms, fixed amounts or timelines. This means you won’t be limited by a strict repayment schedule or set funds that you can only use on specific aspects of your business.
Getting Funding with Bad Credit:
It can be challenging to get unsecured business funding with bad credit. After all, when it comes to unsecured funding, credit is all that a funder has to base their decision on.
That said, a lot of small businesses deal with bad credit due to their limited credit history. Regardless of good personal credit, bad credit can make it challenging to attain funding.
Fortunately, there are options for obtaining financing even with bad credit:
Provide Assets: While unsecured business funding don’t utilize collateral, in some cases it can be worth your while to leverage assets. You can use future credit, unpaid customer invoices or debit card transactions so that collateral is based more on your ability to pay back the funding, rather than your holdings.
Accept Smaller Funding: If you opt for smaller financing options that you can pay back in a shorter period of time, it is easier to get approval. This will help you build up your credit in the long run.
Use Cash: Sometimes small businesses have a steady cash flow, but poor credit. In this case, you can opt to put down a cash payment to show your ability to pay off your financing.
Alternative funder VS. Big Banks
Banks are known to be selective and time-consuming when it comes to business funding. For this reason, more and more small businesses are turning to an alternative funder for financing solutions.
At SharpShooter, we provide an easier route for small businesses who are looking for funding. We understand that small businesses don’t always have the credit history and assets that more established businesses may have.
Our team is committed to helping small Canadian businesses flourish. We do this by providing a streamlined process that makes it not only easier but faster for businesses to attain the funding they need for growth.
Why SharpShooter: Small Business Funding Canadian Businesses Can Trust
Since 2015, SharpShooter has been supporting small Canadian businesses with flexible funding options. We believe in Canada’s small and medium-sized businesses and the dedicated business owners behind them,
With our focus on integrity, innovation, respect, support, and results, we are able to provide businesses with funding that they can trust. At SharpShooter, we are equipped with partner relationships, customer support, technology and cutting-edge data science that enables us to provide businesses with the working capital they need to get back on track and flourish.
We understand the limitations that come with getting funding from institutions, which is why we offer flexible options that small businesses can afford and utilize effectively.
When you choose SharpShooter, you can rest easy knowing that we provide same day approval — why wait a month for approval from an institution?
Applying for Your Unsecured Business Funding
You can attain business funding through SharpShooter in three easy steps.
1: Apply Online
Apply online for your funding using our form.
Your application will be sent to a representative to assess. We approve 75% of the applications we get sent.
You can expect your funding within 24 to 72 hours of your approval.