Most traditional lenders require collateral to approve a business loan. But what if you’re a new business without hard assets? Or you simply don’t want to risk your property, equipment, or personal belongings to secure funding?
Here’s the good news:
You can still get funded.
At
FundNow Capital, we work with a network of flexible, forward-thinking lenders that offer
unsecured small business loans—no collateral required.
🔍 What Is Collateral in Business Lending?
Collateral is something of value that you pledge to a lender in exchange for financing. If you default, the lender can seize this asset to recover their money. Common forms of business collateral include:
- Business-owned real estate
- Equipment and machinery
- Inventory and product stock
- Accounts receivable (invoices due)
- Cash reserves or business savings
For many small businesses—especially startups—these assets are limited or unavailable. That’s where unsecured financing comes in.
🔒 Secured vs. Unsecured Business Loans
- Secured Loans require collateral, such as a building, vehicle, or inventory.
- Unsecured Loans do not require any business or personal assets to be pledged.
Lenders offering unsecured loans take on more risk, so approval usually depends on your
credit score,
business revenue, and
cash flow history instead of collateral.
🧾 What Are My Options If I Don’t Have Collateral?
If you don’t have—or don’t want to risk—business assets, here are some flexible funding options through
FundNow Capital:
1.
Accounts Receivable Financing
Use unpaid invoices to access cash immediately. Lenders front you a percentage of the invoice value, then collect when your customer pays.
2.
Revenue-Based Loans
Repay your loan based on a percentage of your daily or weekly sales. No collateral needed—just consistent revenue.
3.
Blanket Liens
Some lenders may require a general lien on all business assets. It’s less invasive than securing a loan to a specific asset but still gives them some protection in case of default.
4.
Personal Guarantee
You agree to repay the loan personally if your business cannot. This doesn't involve pledging specific assets, but your credit and finances are at risk if the business fails to repay.
5.
True Unsecured Loans
These require
no liens, no collateral, and no personal guarantees—but usually demand excellent credit and strong business financials.
⚠️ What Is a Blanket Business Lien?
A blanket lien (under the Uniform Commercial Code, or UCC) gives the lender the right to claim any business-owned asset if you default. While it's not tied to one item (like a truck or building), it allows a lender to recover losses by liquidating your business property.
👤 What Is a Personal Guarantee?
A
personal guarantee makes you personally responsible for the loan. If your business defaults, you may have to repay the loan using:
- Personal savings
- Personal property (e.g., car or home)
- Future income
LLCs and corporations usually protect your personal assets, but signing a personal guarantee overrides those protections.
💡 Are Unsecured Loans Risky?
Not inherently—but you should understand the terms:
- Blanket liens can disrupt your business operations.
- Personal guarantees can affect your personal credit or assets.
- Higher interest rates or shorter terms may apply due to higher lender risk.
Always review your loan documents and ask questions before signing.
💸 Are Unsecured Loans More Expensive?
I
n many cases, yes. Because the lender is taking on more risk, they may charge:
- Higher interest rates
- Shorter repayment periods
- Upfront fees or origination costs
But the
speed and flexibility of unsecured loans often make them a smart option—especially when timing is critical.
✅ Why Choose FundNow Capital?
At
FundNow Capital, we help small businesses get funded—with or without collateral. Our lending partners offer:
- Unsecured Loans up to $500,000+
- Fast Approvals (24–48 hours)
- No Upfront Fees
- Revenue-Based Loans, Invoice Factoring, and More
- Funding Programs for All Credit Types
Whether you’re expanding, hiring, or just need working capital, we’ll find the right lender for your business—even if you don’t have assets to pledge.
🚀 Ready to Apply?
Don’t let a lack of collateral stop you from getting the funding your business needs.
📞 Call us at
866-201-5370
🌐 Or apply now at
www.fundnowcap.com
🕒 It only takes a few minutes to get pre-qualified—no obligation, no hard credit pull.
FundNow Capital | Smart Lending Solutions for Growing Businesses
