Yes — you can get business funding without pledging a specific asset. Plenty of owners assume "no collateral" means "no funding," but a large share of small-business capital today is approved on the strength of your revenue and bank deposits, not your real estate or equipment. Here's how unsecured funding actually works, and the one piece of fine print to understand before you sign.
What "no collateral" really means
Collateral is a specific asset a lender can claim if a loan isn't repaid — a building, a vehicle, equipment, or inventory pledged under a lien. "No collateral" (or "unsecured") funding means you're not pledging a particular asset like that. Instead, the lender bases approval on how your business performs: consistent deposits, steady sales, and time in business.
That's why revenue-based and short-term options can fund fast — they're reading your bank statements, not appraising a property.
No-collateral funding options
- Revenue based financing — advances based on your sales and deposits; no specific asset pledged, and remittances flex with revenue
- Working capital — short-term capital for payroll, inventory, and seasonal gaps, underwritten on cash flow
- Business lines of credit — draw what you need, when you need it; many are unsecured beyond a personal guarantee
- Business term loans — fixed amount and schedule, often available unsecured for established revenue
By contrast, a property purchase or an equipment buy is naturally secured by the thing you're financing — see real estate financing and equipment financing — so those aren't "no collateral" by design.
💡 The fine print that matters: "no collateral" is not the same as "no personal guarantee." Most unsecured business funding still asks the owner to personally guarantee repayment. That means you stand behind the funding even though no specific asset is pledged. Always read the agreement so you know exactly what you're agreeing to.
How to qualify without collateral
Because the decision rests on performance, the strongest thing you can do is make your revenue easy to verify:
- Keep clean, consistent deposits in a dedicated business bank account
- Show at least 6 months in business and steady monthly revenue (commonly $10K–$15K+)
- Avoid frequent negative days and excessive transfers in the months before you apply
- Have mid-600 credit or improving — see the 650 credit score guide
The guide on how lenders read your bank statements shows exactly which numbers underwriters pull, and the document checklist lists what to have ready. Approval and terms are subject to lender underwriting.
See your no-collateral options
One 60-second form. No documents to start, and the short form does not pull credit.
Check My Funding OptionsFAQ
Is unsecured funding more expensive than secured?
Often the cost is higher than a fully secured bank loan, because the lender takes on more risk without a specific asset to claim. The trade-off is speed and access — you can qualify on revenue and get funded quickly. Compare the real cost using the factor rate guide before you commit.
Can a newer business get unsecured funding?
Once you have roughly 6 months of consistent deposits, yes — that history is what stands in for collateral. Brand-new, pre-revenue businesses usually have fewer unsecured options until that track record exists.