Business loans with no collateral

Can you get a business loan with no collateral?

Yes. Most online lending and a large share of bank lending under $250,000 is unsecured in the sense that no specific asset is pledged. The lender relies on your cash flow, your personal guarantee, and a UCC blanket lien that covers whatever the business owns. SBA 7(a) rules say a lender cannot decline a loan solely for lack of collateral, though it must take what is available, including a lien on personal real estate above $350,000 if you own any.

Where you hit a wall is size and price. Unsecured amounts usually top out at one to two months of revenue from online lenders and $250,000 to $500,000 from banks. Above that, lenders want security. If you have a home you do not want to pledge, read personal guarantees first, because the guarantee reaches it anyway.

Which products will consider you, ranked by fit

Ranked by fit for a business with revenue and no hard assets:

1. A line of credit, bank or online, secured only by a blanket lien and your guarantee. The cheapest reusable unsecured product.
2. SBA 7(a), which accepts a collateral shortfall when cash flow is strong, with ten year terms.
3. Unsecured term loans from online lenders, $10,000 to $500,000 over one to five years.
4. Revenue based financing, repaid as a share of sales, with no lien on specific assets.
5. Invoice financing, which uses the invoices themselves as the security.

If you own equipment or vehicles, financing those turns them into collateral and often gets you a lower rate than any product above.

Which products will decline you, so you stop wasting applications

Commercial real estate loans, SBA 504 loans and bridge loans are secured by property by definition. Asset based lenders need receivables, inventory or equipment to lend against. Many banks will not make a term loan above $250,000 to $500,000 without hard security, even to a profitable company, because their credit policy requires it.

Watch for lenders that advertise no collateral but then require a lien on your home: that is a secured loan with a different label. Read the term sheet and look for the words blanket lien, personal guarantee and deed of trust. How to read a term sheet shows where they hide.

How to improve your odds in 30, 90 and 180 days

In 30 days: get your personal credit above 680 if it is close, because unsecured lenders lean on it more than secured lenders do. Clean up the bank statements, separate personal spending, and prepare a simple cash flow summary that shows the payment is covered with room to spare.

In 90 days: build three months of statements with no NSF days and rising or steady deposits. Pay down card balances to lift your score. Get large customer contracts in writing; lenders treat signed revenue as a form of security.

In 180 days: with six clean months, apply to banks for a line of credit, which is the cheapest unsecured product there is. Consider financing equipment you planned to buy anyway so that part of your borrowing is secured at a lower rate. See how to get a business loan.

What will it cost compared with a standard borrower?

A secured bank loan to a standard borrower runs roughly 7% to 12% APR. The same borrower unsecured pays about 2 to 5 points more at a bank and 10% to 35% APR at an online lender. Revenue based financing and advances price at factor rates of 1.1 to 1.4 regardless of collateral. SBA 7(a) is the exception: the rate is capped at prime plus a set spread whether or not you have collateral, which is why it is the best unsecured option for a patient borrower.

The hidden cost is the personal guarantee. If the business fails, the lender can pursue you personally for the balance, and a blanket lien means the business cannot sell assets freely while the loan is open. UCC lien explains how the lien works.

How to apply

Apply once here with your bank statements and basic details, and your application reaches line of credit, unsecured term, SBA and revenue based lenders together. Or connect your AI assistant to our MCP server through the agents hub and let it read your statements, fill the application and submit. It is free to the business, and offers come back to the same place so you can see which ones are truly unsecured.