Financial Education at your fingertips:

- FREE downloadable "Quick Guides".
- Connect to the people who can help.
- Find just the answers you need with your personalized Financial Checklist.
Borrowing for Your Small Business

Unsecured Loans

An unsecured loan is issued on the basis of your credit rating only. Since the lender doesn't have a claim to any of your assets if you should default on the loan, this is a riskier proposition for the lender than a secured loan. So, you can assume that the interest rate is going to be much higher.

Unsecured lines of credit at banks and credit unions give you access to approximately $500 to $25,000 by writing a check. The amount you qualify for depends on your income and credit rating. Most unsecured loans have a fixed rate of interest with generally two to five years to repay. Late payment penalties and annual fees can be high, so be sure you know what you are getting into before you sign.

Credit cards are a common type of unsecured loan but be very careful to use credit cards as a source of funds for borrowing. Rates are extremely high; and because you are only required to pay a minimum balance each month, debt can mount up very quickly if you are not disciplined. Make sure to only borrow if you have the cash flow to repay the credit card debt within a reasonable timeframe. That means to make regular payments that are much higher than the required minimum monthly payments.

Disclaimers:

Not a Deposit.
Not FDIC-Insured.
Not Insured by any Government Agency.
Not Guaranteed by the Bank.
May go Down in Value.

Investment and insurance products and services are offered through INFINEX INVESTMENTS, INC. Member FINRA/SIPC. BancorpSouth Wealth Management is a trade name of BancorpSouth Bank, a division of Cadence Bank. Infinex and the bank are not affiliated. Products and services made available through Infinex are not insured by the FDIC or any other agency of the United States and are not deposits or obligations of nor guaranteed or insured by any bank or bank affiliate. These products are subject to investment risk, including the possible loss of value.


BrokerCheck

You are leaving www.bancorpsouth.com

You have clicked on a link to a third-party website and are leaving the BancorpSouth website. BancorpSouth does not control third-party web sites or the information, products and services offered there. BancorpSouth provides links to such sites only as a convenience and is not responsible for the privacy or security of any third-party website. We encourage you to review the privacy policy and security offered on the third-party website prior to providing any personal information.

× ProceedCancel