How to Get a Business Loan with No Collateral

Walk into a traditional bank and ask for a $150,000 business loan, and the first thing they'll ask for is collateral — real estate, equipment, or other hard assets they can seize if you don't repay. For the majority of small business owners — service businesses, retailers, restaurants, contractors — collateral isn't sitting around waiting to be pledged. So what are your options?

What "Unsecured" Actually Means

An unsecured business loan is one that isn't backed by a specific piece of collateral. Instead of a lien on your building or equipment, the lender relies on the strength of your business performance and, in most cases, a personal guarantee. The personal guarantee means if the business can't repay, you're personally responsible. Most small business financing — secured or not — requires a personal guarantee from owners with 20%+ ownership.

Products That Don't Require Collateral

Working capital advances: No collateral required — the lender's security is your ongoing business revenue stream. Qualification is based on monthly deposits and time in business.

Unsecured business term loans: Fixed monthly payments over 6–36 months. Available from online lenders and alternative funding companies. Qualification based on credit score, revenue, and time in business.

Business lines of credit: Many business lines of credit are unsecured, especially for amounts under $100,000. You draw what you need and repay it on your schedule.

SBA 7(a) loans under $25,000: The SBA doesn't require collateral for loans under $25,000. For larger amounts, they won't decline a loan solely because collateral is insufficient if you're otherwise qualified.

What Lenders Use Instead of Collateral

• Revenue consistency: Steady, growing monthly deposits are the strongest signal.
• Time in business: A business that has survived and grown for 3+ years has demonstrated staying power.
• Credit score: For unsecured term loans and lines of credit, personal credit plays a bigger role.
• Industry: Some industries are considered lower risk — healthcare, professional services, and established retail businesses often get better terms.

How Much Can You Get Without Collateral?

For working capital advances, amounts typically range from $10,000 to $2 million depending on your monthly revenue. For unsecured term loans, $10,000 to $500,000 is common. Business lines of credit typically cap at $250,000 unsecured, though some lenders go higher for strong profiles.

The Bottom Line

The absence of collateral limits traditional bank loans — but leaves most alternative funding products fully accessible. If your business generates consistent revenue and has been operating for 6+ months, there are multiple unsecured paths to capital. HeyFunder works exclusively with lenders who evaluate your business performance, not just your asset sheet.