Funding Guide
No collateral required — most small business loan products available today are fully unsecured. Here's what's available, how it works, and what lenders use instead of an asset pledge.
Most small business owners don't have commercial real estate, heavy equipment, or other high-value assets to pledge as collateral. The good news: the majority of small business funding products available today are fully unsecured — no collateral required. Here's what's available and how to qualify.
Collateral is an asset you pledge to secure a loan — if you default, the lender seizes it. Commercial real estate, equipment, and inventory are common forms of collateral in traditional business lending.
An unsecured business loan means no asset pledge is required. Approval is based on your business revenue, cash flow, and creditworthiness instead. The lender is taking on more risk — which is why unsecured loans often carry higher rates than secured ones, but also why they're faster and more accessible.
| Product | Collateral Required? | Amount | Min. Credit | Speed |
|---|---|---|---|---|
| Revenue-Based Funding | None | Up to $350K | 500+ | 24 hrs |
| Business Line of Credit | None | Up to $250K | 550+ | 1–3 days |
| Short-Term Business Loan | None | Up to $200K | 500+ | 24 hrs |
| Invoice Factoring | None (invoices only) | Up to $500K | Any | 24–48 hrs |
| SBA 7(a) Under $25K | None | Up to $25K | 650+ | 3–8 weeks |
| Equipment Financing | Equipment only | Up to $150K | 500+ | 1–3 days |
Revenue-based funding (also called a merchant cash advance) is the most widely used unsecured small business funding product. There's no collateral because the advance is technically secured by your future revenue — a fundamentally different risk structure from a traditional secured loan.
Qualifications: 6+ months in business, $10,000+ in monthly deposits, 500+ credit score. Approval in 1–4 hours. Funding in 24 hours.
An unsecured business line of credit gives you a revolving credit pool — draw what you need, repay, and draw again. No collateral is pledged. Approval is based on revenue, time in business, and credit score.
Lines of credit are best for recurring working capital needs: seasonal gaps, payroll timing, or unpredictable expenses. The revolving structure means you're not re-applying every time you need capital.
Not always. Many unsecured small business loans still require a personal guarantee — a legal commitment that you personally will repay the loan if the business can't. This is different from pledging a specific asset (collateral), but it does mean your personal credit and assets can be pursued in the event of a default.
Revenue-based funding and some alternative lenders structure their agreements without a formal personal guarantee, relying instead on the UCC-1 lien against business assets. This is a material difference worth asking about before signing.
Key distinction: "Unsecured" means no collateral pledge. It does not automatically mean no personal guarantee. Always read the agreement and ask explicitly whether a personal guarantee is required.
If your business invoices other businesses with 30–90 day payment terms, invoice factoring is unique: no collateral, no personal guarantee in most cases, and no debt added to your balance sheet. You're selling receivables you already own — the factoring company buys the invoice and advances 80–90% of its value immediately.
Approval is based on your customers' creditworthiness, not yours. Even businesses with challenged personal credit can factor invoices from creditworthy clients.
All of FundCapa's core programs are unsecured. 6+ months in business and $10K+ monthly revenue is all you need. Apply in 5 minutes, decision in 1 hour.
Apply Now — No Collateral Required →Without collateral, lenders assess risk through:
All of FundCapa's core programs are unsecured — no collateral required. Apply in 5 minutes, decision in under 1 hour.