Generally, a borrower must have a high credit rating to receive an unsecured loan.
Businesses use term loans for month-to-month operations or to purchase fixed assets such as production equipment.
An unsecured loan is issued and supported only by the borrower's creditworthiness, rather than by some sort of collateral.
The acquisition loan is typically only available to be used for a short window of time and only for specific purposes.
Once repaid, funds available through an acquisition loan cannot be re-borrowed as with a revolving line of credit at a bank.
Businesses often need to borrow money to finance business investment activities.