# Business loans with no collateral

Source: https://businessloanbroker.ai/situations/no-collateral/
Site: BusinessLoanBroker.ai (powered by Levr)

> You can get a business loan with no collateral if revenue and credit are solid. Unsecured loans, lines, revenue based financing and SBA 7(a) explained.

You can get a business loan with no collateral if the business has revenue and your credit is reasonable. [Unsecured business loans](https://businessloanbroker.ai/business-loans/unsecured-business-loans/), online lines of credit, revenue based financing and even [SBA 7(a) loans](https://businessloanbroker.ai/business-loans/sba-7a-loans/) do not require specific collateral. What they do require is a personal guarantee and usually a blanket lien on the business, so unsecured does not mean no strings. Expect to pay somewhat more and borrow somewhat less than a borrower who can pledge property.

## Key facts
- **Will consider you:** Unsecured term loans, lines of credit, revenue based financing, SBA 7(a), invoice financing
- **Will decline you:** Real estate lenders, asset based lenders, banks on larger loans
- **Typical cost premium:** 2 to 10 percentage points above a secured loan at the same lender
- **Fastest realistic timeline:** 1 to 5 days for online unsecured products
- **What improves odds:** Credit above 680, two years in business, strong cash flow, accepting a personal guarantee

## 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](https://businessloanbroker.ai/guides/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:

- A [line of credit](https://businessloanbroker.ai/business-loans/line-of-credit/), bank or online, secured only by a blanket lien and your guarantee. The cheapest reusable unsecured product.
- SBA 7(a), which accepts a collateral shortfall when cash flow is strong, with ten year terms.
- Unsecured term loans from online lenders, $10,000 to $500,000 over one to five years.
- [Revenue based financing](https://businessloanbroker.ai/business-loans/revenue-based-financing/), repaid as a share of sales, with no lien on specific assets.
- [Invoice financing](https://businessloanbroker.ai/business-loans/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](https://businessloanbroker.ai/guides/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](https://businessloanbroker.ai/guides/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](https://businessloanbroker.ai/glossary/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](https://businessloanbroker.ai/agents/) 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.

| Product | Amounts | Typical cost | Speed | What secures it |
|---|---|---|---|---|
| Line of credit | $10,000 to $500,000 | 8% to 35% APR | Days to weeks | Blanket lien and guarantee |
| SBA 7(a) | $50,000 to $5M | Prime plus 3% to 6.5% | 30 to 90 days | Available assets and guarantee |
| Unsecured term loan | $10,000 to $500,000 | 10% to 35% APR | 1 to 5 days | Blanket lien and guarantee |
| Revenue based financing | $10,000 to $1M | Factor rate 1.1 to 1.4 | 1 to 5 days | A share of future sales |

## Questions and answers
**Does unsecured mean no personal guarantee?**

No. Almost every business loan under a few million dollars requires a personal guarantee from owners of 20% or more. Unsecured means no specific asset is pledged up front. If the business cannot pay, the lender can still pursue you personally.

**Will an SBA lender decline me for having no collateral?**

Not for that reason alone. SBA rules say lack of collateral is not a basis for decline if cash flow supports the loan. The lender must take available collateral, which for loans over $350,000 includes a lien on personal real estate with equity. If you own nothing, the loan can still be approved on cash flow.

**What is a blanket lien and should I worry about it?**

A blanket lien is a UCC filing that gives the lender a claim on all business assets, present and future, rather than one item. It is standard on unsecured loans and lines. It matters when you want a second loan, because the next lender sees the lien and may require a subordination or decline.

**Can a new business get an unsecured loan?**

Only in small amounts. Business credit cards on your personal credit are the usual first step. Unsecured term loans and lines want six to twelve months of revenue. A startup with equipment to buy does better with equipment financing, which creates its own collateral, than with any unsecured product.

## Related
- [Unsecured business loans](https://businessloanbroker.ai/business-loans/unsecured-business-loans/)
- [Business lines of credit](https://businessloanbroker.ai/business-loans/line-of-credit/)
- [SBA 7(a) loans](https://businessloanbroker.ai/business-loans/sba-7a-loans/)
- [Personal guarantees on business loans](https://businessloanbroker.ai/guides/personal-guarantees/)

## Apply
Apply for the business: https://apply.businessloanbroker.ai/signup?utm_source=direct&utm_medium=organic&utm_content=md-no-collateral
MCP server for AI agents: https://mcp.businessloanbroker.ai/mcp (docs: https://businessloanbroker.ai/agents/mcp/)