Monumental Funding Solutions connects business owners to commercial funding solutions for unsecured and collateral-backed working capital for short and long-term business goals. Our alternative business loans are uniquely tailored to deliver the best results. Here are some pros and cons of unsecured commercial loans for working capital:

 

Pros

• Quick Access to Funds: Alternative commercial loans have been known to have faster approval times than secured loans because they don't require the lender to appraise collateral.

• No Collateral Required: This ultimately means that small business owners do not have to risk losing valuable assets if they cannot repay the loan.
• Flexibility: Alternative commercial loans can be used for almost any business purpose, such as covering unexpected expenses, investing in inventory, or expanding your operations.
• Easier Application Process: Since there is no need to provide collateral, the application process is typically simpler and faster than a secured loan. 
• Potential for Better Terms: If you have a strong credit history and a solid business plan, you might be able to negotiate favorable terms, such as a lower interest rate or a longer repayment period.

 

Cons

• Higher Interest Rates: Generally, alternative commercial lenders charge higher interest rates than traditional banks due to increased risks associated with lending to small businesses.
• Shorter Repayment Terms: Some alternative loans have shorter repayment terms than traditional loans.
• Fees: Many alternative lenders charge various fees, such as origination fees, late fees, and prepay penalties.

 

*Subject to change without notice

**Other conditions may apply