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In contrast, if a borrower defaults on an unsecured loan, the lender cannot claim property. However, the lender can take other actions, such as commissioning a collection agency to collect the debt or taking the borrower to court.

If the court rules in the lender's favor, the borrower's wages may be garnished, a lien may be placed on the borrower's home, or the borrower may be otherwise ordered to pay the debt.

Unsecured Business Loans for Collateral-Free Cash. An unsecured business loan has an attractive advantage over a secured loan: You dont have to put up collateral, such as business equipment, inventory or property, to obtain financing in the first place.

That means a lender cannot directly seize your assets if you fail to repay the loan. However, even though an unsecured business loan is not backed by collateral, some lenders may still require you to sign a personal guarantee. A personal guarantee gives a lender the right to go after your personal assets (think a home, car or cash) to recoup the loan if you fail to repay the debt. Unsecured business loans are likely to carry a higher annual percentage rate than secured business loans, but they typically come with faster funding.

Here cash loans today for people on benefits our recommendations for the best unsecured business loans for you: Unsecured business loans with no personal guarantee.

Cash loans today for people on benefits