Unsecured business loans are loans that are not backed by collateral or any tangible security. Unlike secured loans which require borrowers to pledge assets as security, unsecured loans are often lent to borrowers based on their creditworthiness (Equifax score on the credit file of the company and the individual, the length of trading of the business as well as the transactional record of the business (the amount of free cash flow available every three months) and the strength of the financials.