Business loan without collateral

A business loan can be provided by a bank or other financial institution without collateral or surety. At the same time, the bank still assesses the borrower’s creditworthiness based on his profitability, credit history and reputation in the market as a whole.  

Moreover, even though it is not necessary to register property as collateral, most often unsecured loans are characterized by more stringent conditions for repayment of funds with a higher interest rate.  

More information about what options for lending to entrepreneurship without collateral can be used in the article below.  

What options can there be for obtaining a business loan without collateral?   

Unsecured loans for business development   

Funds provided to enterprises without a requirement to ensure their return can be obtained only if the business meets the criteria of the relevant program.  

Although, obtaining an unsecured loan, especially in banks such as PrivatBank, Sberbank or Raiffeisen, has significant advantages compared to classic lending.  

Firstly, it guarantees the risk of losing their assets due to the timely non-repayment of the loan obligation. Secondly, it is characterized by the speed and simplicity of registration of legal relations between the borrower and the bank, respectively (in particular, due to the fact that it is not necessary to conclude additional pledge or surety agreements).  

At the same time, business loans without collateral have certain disadvantages:  

• higher interest rates per annum (12% and above);  
• smaller loan amounts (up to UAH 10,000,000 maximum);  
• stricter requirements for entrepreneurship (in terms of financial condition).    

Overdraft or lines of credit   

An overdraft or a credit line, although not a loan in the classical sense, is a good alternative.  

As a rule, such financial instruments are used by banks to cover working capital costs or short-term investments.  

The general system of their work is as follows:  

• setting an appropriate limit for the use of funds (as a rule, 20% of monthly receipts to the current account of the enterprise);  
• signing an agreement with the bank and drawing up documents for the establishment of an overdraft/credit line for business needs;  
• automatic repayment of the loan when replenishing the current account (interest is accrued on the actually used amount and for the actual time of use).  

Which banks most often offer a business loan without collateral?   

Raiffeisen Bank   

Today, a good initiative was launched by Raiffeisen Bank, which offers a lending program specially designed for the development of entrepreneurship.  

The main conditions for receiving funds are:  

• firstly, repayment two years after receipt;  
• secondly, the payment of an interest rate of up to 23.65% per annum (depending on the amount).  

In accordance with the terms of the Dovira loan program, up to UAH 9,000,000 can be obtained from this bank for use. But before signing an agreement, it is important to always check with the bank employees for what purposes it is fashionable to use them.  

For more information, we advise you to seek advice from one of our qualified lawyers.   

A-bank   

This bank offers entrepreneurs a loan for small businesses, which will be obtained quickly and completely remotely.  

Therefore, entrepreneurs can receive up to UAH 500,000 without pledge of property at 18.9%-20.9% per annum and with a maturity  of up to a maximum of five years.  

It is also worth emphasizing that this program provides for an additional monthly payment of a commission, which is 0.9% of the specified amount.   

 Ukrgasbank   

Finally, Ukrgasbank, as one of the largest banks in our country, offers entrepreneurs several options for financing their needs without the need for collateral:  

• the first option is an instant loan for a sole proprietorship (up to UAH 1,500,000, 10% per annum, for a period of 36 months);  
• the second option is to replenish the company’s working capital (up to UAH 2,000,000, 15% per annum, for a period of 12 months);  
• The third option is to support business in the de-occupied territories (up to UAH 6,000,000, 7% per annum, for a period of 6 months or more).  

How can the lawyers of Prikhodko & Partners help to obtain a business loan without collateral?  

The lawyers of our company, having extensive experience and qualifications, can significantly increase your chances of obtaining a secured loan for your business.  

Their help is based on principles such as complexity and individuality. Lawyers, first of all, analyzing your business and needs, choose the best option for obtaining a loan, and only then prepare you for the entire procedure.  

Their main services also include:  

• verification of the legal status of the enterprise and the necessary documents;  
• preparation of an application for a loan and related documentation;  
• structuring financial statements before submission;  
• representation of the client’s interests in negotiations with the bank;  
• legal analysis of the loan agreement by re-signing;  
• consulting support at each stage of obtaining funding.   

Contact a lawyer of Prikhodko & Partners by filling out the form below, and he will help you get a loan for your business without collateral at an agreed price in the shortest possible time.