It is a funding solution which requires no personal or business asset as collateral. The lender understands the borrower might default and not be able to repay the loan and it is this risk which attracts the large repayment amortization than on a secured business loan. The borrower is required to provide detailed cash flow analysis, including a regular monthly payment for interest is possible during the loan period. The loan period is usually shorter than a secured loan and the amount of interest charged depends on the borrowing period.
The funder knows that lending to an established business is far less risky than the banks think and will lend to you based solely on your recent bank statements and a reasonable credit report.