Unsecured Business Loans (No Collateral)

In short

An unsecured business loan is funding where you do not pledge a specific asset, such as property or equipment, as collateral. "Business loan with no collateral" usually means the same thing.
No collateral rarely means no promise at all: many funders ask the owner to sign personally (a personal guaranty) or file a general lien on business assets.
Term loans, lines of credit, merchant cash advances and revenue-based financing can all come without pledged collateral. Each one is repaid differently.
celerfunding.com is a business funding marketplace and referral service, not a lender. No credit pull to look; a lender may check your credit later.

Yes, many businesses can get funding with no collateral: an unsecured business loan is one where you do not pledge a specific asset, such as a building, a vehicle or equipment, that the lender can take if you stop paying. Instead, the lender relies on your revenue, your credit history and, very often, the owner's personal promise to repay. celerfunding.com is a business funding marketplace that matches businesses in Canada and the US with lenders and funders, including those that offer unsecured options; we are a referral service, not a lender, and each funder makes its own decision and sets its own terms.

What is an unsecured business loan?

Collateral is something of value that you pledge to a lender. If the loan is not repaid, the lender has a legal right to that asset. A secured loan is tied to collateral: real estate, equipment, vehicles, inventory or your accounts receivable. An unsecured loan is not tied to a named asset. The lender looks at whether the business earns enough to make the payments and whether the owner has a record of paying debts on time.

That is why people search for "unsecured business loan" and "business loan with no collateral" as if they were one question. They mostly are. The useful question is not only "do I need collateral?" but "what am I promising instead, and what can the lender do if I cannot pay?"

Lenders treat unsecured lending as riskier, so the offer often reflects it: the amount can be smaller, the term shorter or the cost higher than a loan backed by a solid asset. That is a general pattern, not a rule; compare the real numbers in each offer.

Can I get a business loan with no collateral?

Often, yes. Whether you will is up to the lender, and it depends mostly on your revenue, how long you have been in business, your credit and how much debt you already carry. Even government-backed programs vary: the US Small Business Administration lists "no collateral needed for some loans" as one of the benefits of the loans it backs (SBA: Loans). Some loans, not all, and the lender still decides.

In Canada, the rules of the Canada Small Business Financing Program are stricter: for real property and equipment the lender must take security on the assets financed, and for working capital, leasehold improvements and lines of credit it must take security on business assets. The lender may also take an unsecured personal guaranty (ISED: Helping small businesses get loans). Our CSBFP guide explains the program in detail.

If you do have assets, the SBA suggests listing any collateral you could put against a loan in your funding request (SBA: Plan your business). Offering it is your choice, but knowing what you have helps you compare secured and unsecured offers side by side.

Am I signing personally? Personal guaranty and blanket liens

This is the part most "no collateral" ads leave out. Two common terms can give a lender a claim even when no asset is named as collateral.

Personal guaranty

A personal guaranty is the owner's own promise to repay the business debt if the business cannot. With one, the lender may be able to come after your personal savings or other personal assets, not only the company's. Many unsecured business loans and advances ask for one, and some ask every owner above a set share of the company to sign. Ask whether the guaranty is unlimited or capped, whether it covers only this loan, and whether a spouse or partner must also sign.

Blanket lien

A blanket lien is a general claim on your business assets, not on one item. In the US, lenders record it by filing a UCC financing statement. Virginia's version of the Uniform Commercial Code, for example, says a financing statement is enough if it gives "an indication that the financing statement covers all assets or all personal property" (Code of Virginia, section 8.9A-504). A loan sold as "no collateral" can still come with a filing like that. It can make it harder to get other financing later, because the next lender sees that someone already has a claim.

Neither term is a reason to walk away on its own. They are a reason to read the contract, ask direct questions and compare the full cost. This page is general information, not legal, tax or financial advice.

Unsecured options compared

These four products can all come without a pledged asset. They differ in how you repay and how the cost is shown.

Option	How you repay	What the funder may still ask for
Unsecured term loan	A lump sum, repaid with fixed payments plus interest on a schedule	A personal guaranty; sometimes a general lien
Unsecured line of credit	Draw what you need up to a limit; pay interest on what you use, and the limit frees up as you repay	A personal guaranty; regular reviews of your account
Merchant cash advance	A lump sum framed as a purchase of future sales, repaid with a share of sales until a set total is paid	A personal guaranty and a lien on receivables or other assets are common
Revenue-based financing	A lump sum repaid with a share of revenue until a set total is paid	Access to your sales or bank data; often a personal guaranty

Still choosing between a fixed loan and a credit line? Read line of credit vs term loan. Thinking about an advance? Read is a merchant cash advance worth it?

A merchant cash advance is defined in US federal rules as a lump sum given "in exchange for the right to receive a percentage of the small business's future sales or income up to a ceiling amount" (CFPB: Regulation B, section 1002.104). Advances and revenue-based deals are priced differently from loans, so convert the cost before you compare: our guide to factor rate vs APR shows how.

No assets to pledge, but something specific to finance? Some products use the thing being financed as the security, so you do not need to put up anything else: equipment financing is backed by the equipment, and invoice factoring is based on the invoices your customers owe you.

What lenders look at when there is no collateral

Without an asset to fall back on, a lender leans harder on the business itself. Expect questions about:

Revenue and cash flow. Bank statements and deposits show whether the payments fit. Our guide on how much your business can borrow walks through the math lenders use.
Time in business. A longer track record gives more data. Newer companies can read our startup funding guide.
Credit history. Business credit and, for most small businesses, the owner's personal credit. If yours is weak, see business loans with bad credit.
Debt you already carry. Existing loans, advances and liens all count. Stacking a new advance on an old one is risky; read our guide on MCA stacking.
Your industry and what the money is for. A clear use, such as stock for a busy season or a contract you have already won, is easier to assess. See funding by industry.
Your paperwork. Having it ready saves time. Here is the list of documents lenders need.

Questions to ask before you sign

Is any asset pledged, and will you file a lien? Ask whether a UCC filing (or a similar registration in Canada) covers all business assets or only certain ones, and when it is removed after you pay.
Am I signing personally? Who must sign, is the guaranty capped, and does it cover only this loan or future debts too?
What is the total amount I will repay? Compare totals and the yearly cost, not just the payment.
How often are payments taken, and how? Monthly, weekly or daily; automatic bank debit or a split of card sales.
What fees come off the top? Origination, underwriting or wire fees reduce what you actually receive.
What happens if I pay early, or if I miss a payment? Read the prepayment and default sections, not just the summary.
Can I take other financing while this is open? Some contracts limit it.

Our guide on how to read a business loan offer helps you line offers up. Walk away from anyone who promises approval before reviewing your file, asks for an upfront fee to "secure" a loan, or pushes you to sign the same day.

How celerfunding.com can help

celerfunding.com is a business funding marketplace and referral service, not a lender. You tell us how much you need, what it is for, how long you have been in business and roughly what comes in each month. There is no credit pull to look at your options; if you choose to go ahead with a funder, that funder may check your credit later. We point you to the types of lenders and funders in our network that review files like yours, secured or unsecured. It is free for the business; funders may pay us a referral fee. This may affect which offers you see. Funders make every credit decision and set every term, and approval and timing are never certain. Read more about what a business funding marketplace is.

Want to see which unsecured options fit your business? Start a free application.

Unsecured business loans: can you borrow with no collateral?