Compare five types of small business loans that don’t require collateral as security

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How to borrow money for your business without putting up your property as security.

Small business loans help entrepreneurs meet financial obligations. However, lenders often require that you put down property as security for repayments. Not every business owner is in a position to do so.

Fortunately, business owners can apply for loans without putting up their assets as security. Lenders evaluate the strength of your business and may approve an amount based on that assessment. Besides sound business structure, you also need to show bank statements and a reasonably good personal credit history.

Our top pick: National Business Capital Business Loans

  • Min. Loan Amount: $10,000
  • Max. Loan Amount: $5,000,000
  • Requirements: Your company must have been in business for at least 6 months and have an annual revenue of at least $100,000.
  • Approvals within 24 hours
  • No industry restrictions
  • High approval rate
  • Startup financing options

Our top pick: National Business Capital Business Loans

Get a large business loan to cover your financing needs, no matter what the purpose is. Startups welcome with 680+ credit score.

  • Min. Loan Amount: $10,000
  • Max. Loan Amount: $5,000,000
  • Requirements: Your company must have been in business for at least 6 months and have an annual revenue of at least $100,000.
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Which lenders offer small business loans with no collateral required?

Some online lenders offer loans that don’t require property as security. Rates, fees and loan terms differ depending on the institution, so it’s a good idea to shop around for the best combination of these factors. Online lenders are generally more relaxed than banks with their lending criteria.

Compare top online business loan lenders

Updated October 14th, 2019
Name Product Filter Values Min. Amount Max. Amount Requirements
$5,000
$500,000
Annual business revenue of at least $42,000, at least 9 months in business, personal credit score of 550+.
Customizable loans with no origination fee for business owners in a hurry.
$5,000
$250,000
6+ months in business, $100,000+ annual revenue, 600+ credit score, not based in North Dakota or South Dakota
Get a predictable business loan with a fixed weekly rate.
$50,000
$1,000,000
2+ years in business, 620+ credit score, not a sole proprietorship or nonprofit, strong financial history
Financing for high-risk industries with transparent rates and terms.
$5,000
$500,000
600+ personal credit score, 1+ years in business, $100,000+ annual revenue
A leading online business lender offering flexible financing at competitive fixed rates.
$10,000
$5,000,000
Your company must have been in business for at least 6 months and have an annual revenue of at least $100,000.
Get a large business loan to cover your financing needs, no matter what the purpose is. Startups welcome with 680+ credit score.
$500
$250,000
1+ years in business, $50,000+ annual revenue or $4,200+ monthly revenue over last 3 months
A simple, convenient online application could securely get the funds you need to grow your business.
Varies by lender and type of financing
Varies by lender and type of financing
Varies by lender, but many require good personal credit, minimum annual revenue and minimum time in business
Multiple business financing options in one place including: small business loans, lines of credit, SBA loans, equipment financing and more.
$5,000
$1,000,000
1+ years in business, $10,000+ monthly revenue
Apply online and get approved within hours with minimal paperwork. Multiple financing options available.
$500
$5,000,000
Must operate a business in the US or Canada, have a business bank account and have a personal credit score of 560+.
Submit one simple application to potentially get offers from a network of over 75 legit business lenders.
$500
$100,000
Credit score of 500+, legal US resident and ages 18+.
Use this connection service to get paired with a loan you can use for business.

Compare up to 4 providers

What loan types are available with no collateral required?

Lenders offer a few different types of business financing that doesn’t require security. Consider the following types to see which one might work best for your business:

  • Unsecured business loan

With an unsecured business loan, the lender will consider the financial health of your business and whether or not you’re in a position to make repayments. The minimum and maximum amounts vary depending on the lender, but the loan amount you get depends on the lender’s assessment of your business.

Repayment periods can range from one to seven years. The quicker you repay this loan, the more you save on interest and the better your credit profile. Lenders will more readily grant another loan to a responsible borrower.

  • Invoice financing

Invoice financing lets you borrow against outstanding invoices and repay the loan once your clients honor those invoices. This is a quick, easy way to fix a business’s cash flow problems without putting up property as collateral.

Depending on the lender, you may be able to have the money in your account within one business day of the application. This kind of funding can be an option for when you’re unable to fill an order because of a cash shortage.

business-invoice-wide

  • Purchase order financing

If you’re having trouble filling an order because of cash flow problems, you can apply for a loan where the lender pays your suppliers on your behalf. The supplier ships the order to your customer who pays the lender, and any profit from the transaction is deposited into your account.

Instead of demanding property as security, purchase order financing is granted based on your business profile, the risk of the orders, your clients’ and suppliers’ reputations and experience in the industry.

Besides providing financial breathing room, purchase order financing helps you take on bigger orders, increase turnover and streamline the supply chain. This boosts your business’s profile, thereby extending your customer base and eventually enhancing profits.

  • Trade finance

Similar to purchase order financing, a trade finance loan pays your supplier on your behalf so that you can deliver an order to your customer. You then repay the lender within the agreed-upon period.

Lenders work with foreign exchange partners to find the best interest rates, usually more competitive than those offered by traditional banks. Maximum loan amounts differ, with some lenders offering over $1 million depending on the order.

Sometimes available as a revolving line of credit, trade finance helps small businesses fulfill their orders without putting up their own assets as collateral. This type of loan can be ideal for businesses with suppliers and overseas customers. The lender acts as a third-party financier to facilitate the business deal while you get on with fulfilling the order.

  • Equipment finance

If you’re struggling with old or damaged equipment, you can apply for a loan to purchase business equipment. Instead of demanding assets as collateral, lenders may take into account the strength of your business and anticipated cash flow when considering your application.

Depending on the lender, you can get different loan types to finance a rental lease, financial lease or actual purchase. You then enter into a tailored contract to repay the loan over the agreed-upon period. Some lenders may provide the option to purchase additional equipment during the loan and then adjust the repayment terms accordingly.

Bottom line

Acquiring a business loan doesn’t have to mean risking your property. Several online lenders grant funding based on the financial health of the business and projected income to get you the financing you need.

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