Startup Business Loans Without Collateral: Take Your Pick

Borrowing money is a sensitive matter, especially for banks that will always look for a guarantee that borrowers will repay them, plus interest. Without that guarantee, banks have little reason to grant a loan if they consider a borrower as a high risk.

Unfortunately, “high risk” is a stigma attached to startups; it doesn’t help that the statistics seem to agree with it, too:

Here’s the rub: most startups have little capital and no valuable asset to put up as collateral, and yet, they are the ones most in need of financing.

The Non-Traditional Route: Unsecured Business Loans for Startups

If you own a startup that needs an influx of cash, but you don’t have anything of value to offer as collateral, you can forget asking for a loan at a bank. Your best bet would be to apply at private lending institutions that provide startup business loans with no collateral. There might be compromises, like interest rates that are slightly higher than bank loans. But the payoff is getting the cash you need to keep the business running now so you can implement those plans to increase your revenues.

What are your options for unsecured loans for startup businesses? Take your pick from the following:

1. Working Capital Loans

These loans are meant to sustain a business’s daily operations by providing much-needed cash flow that owners can use to pay off working capital costs and operating expenses. Examples of these are inventory acquisitions, taxes, payroll, overhead, and accounts payables.

2. Financing for Equipment Leasing

Leasing agreements don’t need collateral. This is a sound alternative to financing for buying brand-new equipment: the loan and interest are much more affordable and the terms more flexible. There will be less pressure for the startup business to perform exceptionally high on year one because there are no absurdly high fixed dues to pay each month.

3. Merchant Cash Advance

You may qualify for a merchant cash advance if a large chunk of your revenues come from credit card sales. This loan is essentially an advance on the income you expect to get. There’s no need to repay or offer anything for collateral, too, because the lender will automatically deduct the payments (a specified percentage) from your future earnings. 

What if your startup hasn’t been in business long enough to have substantial historical data on monthly revenues? You may not qualify for a merchant cash advance, but you can certainly apply for a working capital loan. Moreover, if your need is specific to equipment upgrades, you can take the strategic route and seek financing for equipment leasing instead of the two other options.

Enjoy Collateral-Free Loans from Probably

All of the loans discussed above are available at Probably. We specialize in affordable financing solutions for small businesses and startups. Choose from the options above if you have no assets for collateral. If you have further questions, contact us through phone or email.


The Limitations of Government-Funded Loans for COVID Relief

The coronavirus pandemic has left an indelible mark on the global economy. Thousands of small and medium businesses immediately felt the crunch when cities all over the country imposed a two-week or longer mandatory quarantine and closed down all commercial establishments, to stop the spread of the COVID-19 virus.

Many would have recovered if they were able to return to business as soon as city-wide quarantines ended, but state governments deemed it best to lift restrictions by stages: essential services first (e.g., food and drink, personal care) and least essential businesses last (e.g., entertainment, museums, concert events).

Small businesses that belonged to the less essential categories had to wait longer to reopen, but bills from creditors and landlords did not stop. By the end of September 2020, nearly 100,000 establishments that were shut down because of the pandemic closed for good.

Poor Dissemination of Stimulus & Financial Aid Funds

Acknowledging that small businesses are vital to the economy and therefore need assistance during the pandemic, Congress passed a stimulus package in March to provide emergency financial relief for workers and small businesses. The CARES Act established four temporary loan options:

  • Paycheck Protection Program (PPP)
  • EIDL
  • SBA Express Bridge Loans
  • SBA Debt Relief

Small business owners looked forward to these programs. Unfortunately, the needs outweighed the available resources as the initial funding ran out in only days.

The Challenges Small Business Owners Face When Applying for Aid

In California, small business owners jumped at the chance to get affordable and lenient loans from the government. They might have found more success, however, if they sought small business loans from private California lenders.

The government-funded loan programs had numerous snags, which made it more challenging for business owners to apply. Here are some of them:

  • The programs all have limited funding, and the availability of the funding depended on whether Congress could agree on the budget, among other things.
  • The debt relief programs were meant to provide aid for small businesses, but loopholes in the section identifying the criteria for qualified applicants allowed large businesses and franchises to avail of the financial aid as well. Many big companies received millions in assistance, while the smaller businesses were left with little to zero funds as a result.
  • Businesses with long-established relationships with banks and lenders seem to have had an advantage even though the loan programs were meant to be awarded to qualified businesses on a first-come, first-served basis. This reportedly disproportionate prioritization led to manufacturers and construction firms getting approved for loans first, and restaurants, bars, and hospitality businesses last. There are also data to support this observation: Yelp’s recent Economic Impact Report revealed that approximately 163,735 businesses have reported to Yelp that they have closed for good. The restaurant industry had the highest number of permanent closures at 61%.
  • For the first rounds of the stimulus package, the funding went to the country’s largest banks, and not enough went to the smaller, rural banks that also served the smaller, rural business owners.
  • The small business owners who did get approved for these loans received just enough to see them through in the short term. In some cases, business owners were doubtful that, even with loans, they would be able to keep their business open for long.

Contact Probably Yes for Your Small Business Funding Relief

The pandemic has created unprecedented scenarios for which many of us, including the federal and state governments, were unprepared.

In the middle of all this uncertainty, reliable and indubitable solutions can give you financial relief and peace of mind.

That’s what we offer here at Probably. We offer working capital loans and small business loans to small business owners in California. Browse our website to learn more about what we do.

Contact us to apply for a small business loan today!


What Are Bridge Loans?

A bridge loan is defined as a short-term loan used by a business for financing immediate obligations or needs. These loans allow the borrower to meet their current financial obligations by getting capital quickly for payroll, taxes, rent, even additional inventory.

Bridge loans are called ‘short-term’ because they are usually only up to a year. These types of loans can sometimes be called working capital loans or bridge financing. But whatever you call them – they are one of Probably’s specialties!

How Do Bridge Loans Work?

Bridge loans bridge a financial gap when financing or working capital is needed for your business but not yet available. Both large corporations and small businesses can use bridge loans, which means that your particular loan should be customized for your needs, amount, and situation.

Bridge loans are fast options and can provide immediate working capital, but this can come with higher interest sometimes and may require collateral. This is why it is important to get terms that benefit you, work with a transparent lender, and make sure you understand the process and repayment details.

Luckily, that’s what Probably is known for – transparency, clarity, and communication!

Differences Between Bridge Loans & Traditional Loans

Bridge LoansTraditional Loans
Shorter applicationLonger application
Faster approvalSlower approval
Short-term fundingLonger-term funding
Sometimes higher interest ratesSometimes lower interest rates
No repayment penaltiesMay have repayment penalties

Bridge Loans for Your Small Business

Bridge loans are not like payday loans or other ‘get funding fast’ options for individuals, instead, they help a business make more money, grow, or become more successful.

For example, if a small business gets a large order, then they will need to buy extra inventory, products, or parts to fill that order. And though they have not been paid for the order they are about to make, they still need the working capital to buy the items to fill the order. That kind of circular funding problem happens quite often for small businesses, and a bridge loan is the perfect, short-term solution!

Bridge loans can also be used for short-term payroll, rent, utilities, and other expenses that will help your business in the long run, or ‘hold you over’ until you can secure longer-term financing.

Our Bridge Loan Uses:

Help with Payroll

When you need working capital for payroll, speed, and ease matter. Your employees depend on you and your payroll, and you can depend on Probably to get you the working capital you need quickly with our bridge loans.

Invest in New or Supplementary Equipment

Buying new equipment (or more equipment for added demand) can be a big investment, but sometimes you need to spend money to make money. If you need a bridge loan to invest in equipment that will help your business thrive, we’ve got you covered – fast.

Pay Taxes or Infrequent Financial Obligations

Sometimes financial obligations and fees pop up when you least expect them, and sometimes taxes or quarterlies add up faster than you planned on. Use our small business bridge loans to pay for the surprises on your road to success.

Purchase Additional Inventory for Spikes or Large Orders

Additional inventory might be needed when you don’t quite have the capital on-hand for a big order or a heightened demand. Use a working capital or bridge loan to bridge the gap and get your inventory so you can keep your business moving forward!

Invest in Your Marketing Services

Marketing, whether in print, online, radio, or on TV, can be expensive. If your marketing efforts need to be bumped up during certain times of the year, then you’ll need a short time influx of working capital to set you up for great ROI. Have the capital you need for a killer campaign with our bridge loans!

General Help with Cash Flow

If this year has shown us anything, it’s that small businesses have slow and busy periods that they may have no control over, but that doesn’t mean your bills have slow and busy periods – they steadily keep coming! Use our bridge loan to help with your cash flow at any time of the year, until you can bounce back or secure longer-term financing.

Contact Probably Yes to Learn More About Your Bridge Loan Solution!

Learn more about us, how we work, or peruse our blog page for more information about working capital and bridge loans, business funding for startups, and more!


Working Capital Loans & Bridge Loans: All You Need to Know!

Probably can provide your small business with the working capital loan you need for equipment, payroll, inventory, marketing, taxes, and more! We want to get you the working capital or bridge loan you need to help grow your business and bring your goals in reach.

We want to make working capital loans for businesses simple, easy, and successful. That’s why we believe in clear and transparent loan terms.
We work with you to find the perfect working capital loan for your business. Whether you need a little or a lot, our business loans deliver.
Probably works hard to deliver working capital loans that give you quick access to the funds you need to invest and grow your small business.

We make getting a fast working capital loan easy with our simple process, flexible options, and quick access to the funds you need. But before you get a working capital loan through Probably, let’s make sure all of your questions are answered.

What Is a Working Capital Loan?

A working capital loan is a short-term loan that is generally used until you secure permanent financing or remove a current financial need, like inventory, taxes, or a cash flow issue that will be resolved in the future.

Working capital loans ultimately get you the immediate capital you need now – not weeks from now. Our working capital loans have longer terms of 18 months instead of the usual 12 from traditional banks.

Here’s the short and sweet of working capital loans:

  • A working capital loan is a financing option used until your business gets long-term financing or no longer has a specific bill or debt.
  • Working capital loans are short term, typically less than 12 months, but with Probably, repayment can be made over 18 months.
  • Working capital loans, or bridge loans, are often used for small businesses to bridge gaps in cash flow.

What Are the Benefits of a Probably Working Capital Loan?

Our working capital loans have a faster application process, faster approval and faster funding process than traditional loans. In addition to speed, Probably’s working capital loans have a term of up to 18 months, giving you time to pay back the loan amount. Plus, with Probably, there are never any prepayment fees.

Probably can get you approval in as fast as one business day, with loan amounts from $5,000-$500,000*.

We help new businesses build a credit profile. Our working capital loans are based on your current business performance, not years of credit history. Because we believe working capital loans for startups are just as important as loans for long-standing businesses. Most banks refuse to consider businesses without long credit histories, but Probably will work to help you grow regardless of your age.

We have no prepayment penalties, ever. In fact, we offer prepayment (or early payment) discounts! These can be anywhere from 6% to 25% off the original cost of funds depending on your loan amount.

*Approval amounts and repayment terms are subject to final credit review and approval.

How Can Working Capital Loans Help Your Business?

We understand that every business is different, which means that every working capital loan is different. Probably’s working capital loans can be used for a multitude of expenses, but some of the most common are:

Purchasing Additional Inventory

Additional inventory could be needed, even if you don’t have the capital on-hand. That’s where a Probably working capital loan can come in to bridge the gap and get your business the inventory it needs today.

Helping Bridge Gaps in Payroll

If you need capital for payroll, then waiting a week or more simply isn’t an option. Your employees depend on your payroll, and you can depend on Probably to get you the working capital you need quickly.

Investing in Equipment

Buying new equipment can be a big investment, but sometimes you need to spend money to make money. If you need a working capital loan to invest in your industry-specific equipment, we’ve got you covered.

Paying Taxes or Other Periodic Debts

Sometimes infrequent fees pop up when you least expect them, rent comes at an inopportune time, or taxes and quarterlies add up faster than you had planned. Use our working capital loan to pay for the surprise.

Investing in Marketing or Advertising

Marketing can be expensive, and if your marketing efforts need to be bumped up during certain times of year, then having the working capital you need is a must for a successful campaign.

Probably Can’t Wait to Say ‘Yes’ to Your Business Loan Needs!

We want to provide a new kind of working capital loan, a better kind. Contact us today to learn more about our loans, services, and history.

We want to help your business reach its goal – because Probably is all about you and your business.


Working Capital Loans 101

Probably’s working capital loans are meant to help businesses reach their goals because we believe that cash flow should never hold you back. But with over 45% of small business loan applications being rejected, many businesses get stuck with their second or third choice, meaning subpar lenders, shorter terms, and higher rates.

Our working capital loans give you the freedom to choose the best loan with everything you need to help your business grow! Our customers use their working capital loans to invest in their business’s short term needs and to ensure they can weather any storm.

Probably wants to help you grow your business faster and succeed. Learn everything you need to know about working capital loans here!

What Are Working Capital Loans?

Working capital loans are loans that can help businesses finance their everyday operational needs. From purchasing additional inventory, to assistance with payroll, investing in new, small equipment, paying taxes or other fees, rent, marketing efforts, or just general cash flow hurdles, working capital loans are meant to bridge the gap between what your business needs right now and what it currently has.

Working capital loans are usually short term, not multi-year loans, however, that doesn’t mean you can’t still get a great solution that works with your seasonal and industry needs. In fact, Probably offers repayment terms of up to 18 months for our working capital loans, instead of the industry standard of 12 months or less.

How Working Capital Loans Work

Sometimes bills fall just a few days too early, or you need more inventory to fill a large order. Maybe your payroll is due before your outstanding invoices have been paid. When schedules don’t quite work out, that’s when a working capital loan can greatly help you meet your business needs.

If a business does not have enough cash on hand to cover day-to-day or weekly operational expenses, then looking into a working capital loan might be the solution. But it’s good to understand the process and the best lenders before you ever need a loan. That way you can make a quick yet informed decision and get your funds sooner.

Just like many loan forms, a working capital loan includes three steps: application, funding, and repayment.

First, you will apply for your working capital loan, which with Probably, is a simple and streamlined process. Next, you will receive your working capital in as little as one business day. And finally, you will repay your working capital loan according to the terms and rates you agree upon.

Though this process sounds simple, many lenders bog it down with additional paperwork, wait time, and confusing terms. Make sure you choose a working capital loan that works for you, and a lender who is willing to partner with you, be clear, and be flexible.

Benefits of Working Capital Loans

One of the main pros of a working capital loan is that it requires less paperwork and is faster in most cases than a loan through traditional lenders. This is helpful if you are using it to bridge any capital gaps in your day-to-day or weekly operational needs.

Additionally, usually, working capital loans are a form of debt financing that doesn’t require an equity transaction, so you still have full control of your business. Furthermore, working capital loans do not require any collateral, called ‘unsecured’ loans, and are in the business name.

Working capital loans with Probably are based on your current business performance, not years of credit history, and your on-time payments with Probably help build your business credit.

Contact Probably Today for Your Working Capital Loan & Get The Business Funds You Need Sooner!

Ultimately, a working capital loan is a great choice for bridging the gap between operational and day-to-day needs, but only if it is through a great lender.

Contact Probably today to get started on your working capital loan.