Last Updated:
December 3, 2021

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Unsecured business loans – What and How it works?

An unsecured business loan is one which does not require the borrower to pledge an asset or collateral against the debt. Usually, when you avail a business loan from a bank or lender, they require some sort of asset or collateral to be pledged against the loan. These are called secured loans. A collateral is usually taken as an assurance by the bank or the lender to ensure that they can recover the money in case the business fails to repay the due loan amount. The value of the collateral or asset is often more than the amount that is offered as a business loan. Read more read more
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