Unsecured business loans are cheaper from Funding Circle: Small business loans in 3 easy steps..

Not every business wants, needs or qualifies for unsecured business lines of credit. In your situation, it might make more sense to get a small business loan instead. Fortunately, Hawkeye is well-equipped to assist you in obtaining the loans or lines of credit you desire. We can help you understand if a loan or a line of credit is better and which you will qualify for. Our small business loans and unsecured solutions work great for start up companies and can be a great source of some of the seed capital you may need to start, build, or grow your business.

Unsecured business loans almost always have higher rates and higher monthly payments than unsecured business lines of credit. Additionally, you’ll pay higher closing costs on loans than on lines of credit and, of course, a loan can only be used once whereas lines of credit can be used over and over again multiple times.
This is where lots of people ask us if these are SBA loans or how unsecured business funding compares to an SBA loan. We think SBA loans are great and if that’s what you want then we will gladly refer you to someone who specializes in SBA loans. Keep in mind that SBA loans will be a loan and not a line of credit, they will require collateral (so they are NOT unsecured), and the rates are sometimes higher and sometimes lower than unsecured business funding solutions. Traditionally, SBA “loans” tend to have slightly lower rates than unsecured business loans. Although they are extremely rare, an SBA “line of credit” (which will require collateral) will usually have a higher rate than a true unsecured business line of credit.
Like anything else, obtaining small business loans is always a process. There are things banks look for, paperwork they need to verify and numbers they want to see. Unless you’re prepared, getting a bank loan for your business can be an unmitigated nightmare. Even if you meet all the bank’s lending criteria, actually getting your money will take longer than it has to. Delays, waiting periods and approval timelines all work against you when you don’t understand the process.