"You see, An unsecured term loan is a business loan granted where the loan is supported by the borrower’s creditworthiness rather than any collateral or securit

"You see, An unsecured term loan is a business loan granted where the loan is supported by the borrower’s creditworthiness rather than any collateral or security. This means that the cash flow and profitability of your business will be a very important part of the lender’s credit rating decision. The reason these facilities are called unsecured business finance is because there is no security or collateral. That means the risk is higher and so the interest rates charged by the lender are normally higher. For example, unsecured business loans in South Africa are normally short-term loans ranging from 3 months to 3 years. "