Non Traditional Unsecured Business Line of Credit 2019

Small business line of credit from non traditional lenders like Kabbage, OnDeck, Lending Club, etc. offer low to no docs and quick approval processes compared to banks. It is ideal for businesses who are unable to secure a line of credit from traditional lenders and also for those who have bad credit history.

Non Traditional Small Business Line of Credit Lenders Review:

No collateral required to get business line of credit from this non traditional lender.  Line of credit is based on your business performance irrespective of your personal credit score. Even if you have bad credit business still you can get qualify for business credit line up to $250,000.

With a short term business line of credit, you can draw on a set amount of capital whenever you need. You only need to pay monthly fee on the amount you use.

  • Small business line of credit $2,000 to $250,000
  • Must be in business min 1 year.
  • Making min $50,000 business sales a year. [or]
  • Min $4,200 average business sales from last 3 months.
  • Interest rates: No interest rates. Pay monthly fees from 1.5% to 10%. Only pay fee on the amount drawn. Capital is available when needed suitable for all kind of business purpose.
  • There is no origination fee.
  •  Avg time to funding: within few minutes’ instant loan deposit to PayPal account or 1 to 3 days for bank account.
  • Repayment term: 6 or 12 month
  • Documents required: No docs or paperwork required.
  • Bad credit is acceptable.
  • Excellent way to build your credit score.
  • Disadvantage:  Higher rates for lower credit scores.

business line of credit requirements



Small Business line of credit fee & repayments:

Small business line of credit monthly fee is fixed based on your business history, sales, revenue, and credit score. You can pay back line of credit loans before the term.  There is no prepayment penalty.

Non traditional lender Kabbage offer Line of credit business loans with 6 month or 12 month term. You can select any term and make repayments accordingly. For 6 month term, you will be paying a monthly fee from 1.5% to 10% for the first two months and for the rest 4 months you pay only 1%.

business line of credit rates

Likewise, for 12 month term you will be paying monthly fee (1.5% to 10%) for the first six months and remaining 6 months you will be paying only 1%.

Example: Suppose you apply for $10,000 small business line of credit. You have two options 6 or 12 month term.

For 6 month term: There will be 6 monthly installments and need to pay 1/6th of $10,000 = $1,6667 (principal) .

Now assume you got a monthly fee of 5% for 6 month term.  First two months you pay only 5%; 5% of $10,000 line of credit = $500 per month for 2 months.

$1,6667 + $500 =  $2,167 per month for the first two months.

Remaining 4 months you will pay only 1% or $100 of the loan amount per month for 4 months.

$1,6667 +100= $1,767 each month for remaining 4 months

So total you will end up paying back $10,000 business line of credit within 6 month term at the cost of $1,400 total fees.

It works similarly for 12 month small business line of credit. Instead of 1/6th you will pay 1/12th of the principal and 1.5% to 10% monthly fee for the first 6 months. Remaining 6 months pay only 1% fee + 1/12th of the total loan amount.


How to get Non Traditional Business Line of Credit Online:

To get line of credit for your business you must have a checking account & minimum one online accounting platforms like QuickBooks, Zoho, XERO, billy, Freshbooks etc. This is to verify your financial transactions.

Apart from online accounting if you’re an online merchant selling your products on websites like eBay, Amazon, Etsy, e-commerce, cafepress, bonanza, Goantiques, shopify etc and also using your website to sell as well then connect any of these accounts with lender for verification.

kabbage business loans

To get small business line of credit you can connect your online payment accounts like PayPal, Square,, credit card processor for the lender to review it.

Important:  Lender once completes the verification and you get qualified; you will get your loan amount, exact monthly fee and term within minutes.

Usually you be having monthly repayment but if you wish to make semi-monthly or weekly then it’s your choice.

How Non Traditional Small Business Line of Credit Works:

First step is to verify your business income and its financial transaction. Securely connect your business accounts like checking account, PayPal, Amazon, Etsy, eBay, & online accounting.

Along with the above provide your business & personal details including Social security number.

Wait for few minutes for business loan lender’s software to review it. Business verification is not determined by any actual person. This is all derived through an algorithm that kabbage has implemented. It decides about your business data, performance, sales, revenue, transactions etc.

Once verification is done, kabbage algorithm decides about your loan amount, rate, and term. If you have more than one business accounts then connect it or provide more sales information for the lender to review.

Kabbage knows all businesses need working capital or other financing at some point of time. That’s why kabbage do business performance review instead of just sticking to your credit score unlike traditional banks.

How you use the money is up to you getting you the money is what kabbage do. They provide small business line of credit must faster than anyone else.

Why Kabbage Business line Credit:

If you need money you have to go to a bank fill out paperwork & get a line of credit. It will be weeks just to be told “no”.

The great thing about kabbage line of credit is, you log into your account and link all the accounts like quickbooks, paypal, amazon, square, etc you already doing business with your kabbage account. All these accounts currently you are using them get linked to your kabbage.

Now, Kabbage will begin review and verification process using technology such as Yodlee interactive to see your financial transactions.

What matters most for kabbage is your business performance, your sales, revenue, and how well you are interacting with your customers (facebook, yelp, twitter etc).

Based all the data you provide kabbage algorithm will give you your loan amount, monthly payment, how much it will cost for 6 month or 12 month, monthly fees everything under 7 to 10 minutes.

If you get qualified for $10,000 but you need only $5,000 only at the moment. Then take only $5,000 and make repayments only for $5,000 business credit line.

Most of kabbage customers claim their revenue has increased by 73% after using kabbage business line of credit.

Kabbage has eliminated documentation or paperwork process. You will find 100% technology orientated underwriting approval & funding within few minutes.

No origination fees and prepayment penalties. Get funds instantly deposited at a low affordable fee. Flexible payback based on sales and you can get business line of credit up to $100,000 with bad credit.


Eligibility criteria for non traditional unsecured Business line of credit:

Every bank or financial institution has its own set of eligibility criteria to offer a line of credit to your business. While it is advisable to check with the lender before applying, here is a quick look at the eligibility requirements of a few of them:

small business line of credit requirements

What is the processing time and the amount of Business credit line offered?

Any business looking for a line of credit needs to consider the time taken by the lender to process the application and the minimum and maximum amounts of credit lines offered.

Here is a list of some lenders for your ready reference:

get business line of credit

Small Business Line of Credit Rates Comparison:

Undoubtedly, one of the most important aspect to consider before finalizing a line of credit is the rate of interest. And/or any other charges. Here is an overview of business line of credit interest rate comparison:


small business line of credit rates

Advantage of Non Traditional small Business Line of Credit lender:

There is no origination fees unlike other non and traditional lenders. You can save 1% to 5% of the total business line of credit loan.

Second advantage is there are no prepayment penalties. You can pay off your business credit line quickly and apply again to get better rate and term.

Traditional lenders charges interest rates for the entire business line of credit term. Here, you will pay only monthly fees for the outstanding loan amount of the month.


As an ending note

A small business line of credit can help you cover small expenses or use it to buy inventories, expand your business growth.

No comments

Leave a Reply

Your email address will not be published. Required fields are marked *