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Business Loan Without Collateral

Dated October 14, 2026

A business loan without collateral, also called an unsecured business loan, is financing that isn't backed by property, equipment, or other assets you pledge. The lender decides mainly on your business's revenue, cash flow, credit, and time in business.

How it differs from a secured loan

With a secured loan, the lender can take the pledged asset if the loan isn't repaid. An unsecured loan has no specific asset tied to it. Many lenders still ask for a personal guarantee, which makes you personally responsible for repayment, so read the terms carefully.

Common types of financing without collateral

• Unsecured term loan. You get a lump sum and repay it on a fixed schedule.
• Business line of credit. You draw funds as you need them, up to a limit.
• Merchant cash advance. It's repaid from future card sales.
• Invoice financing. It's backed by your unpaid invoices, so you don't pledge property or equipment.

What lenders typically look at

• Consistent business revenue
• Time in business
• Business and personal credit
• Recent bank statements
• Existing debt

Check what fits your business