How to Get a Business Loan in the USA Without Collateral: A Complete Guide for 2025

Are you an entrepreneur or small business owner in the U.S. seeking funding but don’t have assets to offer as collateral? You’re not alone. Every year, thousands of businesses—especially startups and small enterprises—face the challenge of securing a business loan without collateral.

The good news? It’s possible!

In this detailed guide, we’ll break down how to get a business loan in the USA without putting up property or equipment as collateral. We’ll also explore the best lenders, alternative funding options, eligibility criteria, and insider tips to boost your chances of approval in 2025.

1. Understanding Collateral-Free Business Loans

A collateral-free or unsecured business loan is a type of financing where the borrower does not need to pledge assets like real estate, inventory, or equipment to secure the loan.

Instead of backing the loan with assets, lenders assess the creditworthiness of your business based on factors like:

Credit score
Business revenue
Time in business
Business plan
Cash flow projections

💡 Key Insight: These loans typically come with higher interest rates or shorter repayment terms due to the lender’s increased risk.

2. Types of No-Collateral Business Loans

There are several forms of unsecured loans you can explore in the U.S. Here are the most popular:

1. SBA 7(a) Small Loans (Unsecured Portion)

The U.S. Small Business Administration (SBA) guarantees loans through partner lenders. For loans under $50,000–$150,000, collateral may not be required if unavailable.

2. Business Lines of Credit

Gives you access to flexible cash when you need it—similar to a credit card. Usually doesn’t require collateral for smaller amounts.

3. Merchant Cash Advances (MCA)

You receive a lump sum in exchange for a percentage of your daily credit card sales. No collateral, but fees can be high.

4. Invoice Financing

Use unpaid customer invoices to borrow money. Technically asset-based, but doesn’t require traditional collateral.

5. Term Loans from Online Lenders

Fintech companies like Fundbox or OnDeck offer term loans without collateral based on your business performance.

6. Equipment Financing (Soft Collateral)

Though technically secured by the equipment you’re buying, you don’t need to pledge existing assets.

3. Who Can Qualify for a Business Loan Without Collateral?

Collateral-free loans aren’t for everyone. Here’s what lenders typically look for:

Criteria	Minimum Requirement
Credit Score	600+ (Higher is better)
Time in Business	6–24 months
Annual Revenue	$50,000+ (varies by lender)
Business Type	Must be registered and legal
Cash Flow	Positive and stable

✅ Pro Tip: If your credit score is low, consider applying with a co-signer or improving it before applying.

4. Top Lenders Offering Unsecured Business Loans in the USA (2025)

Here are some of the best lenders for no-collateral business loans in 2025:

1. BlueVine

Loan Type: Line of Credit
Amount: Up to $250,000
Requirements: 600+ credit score, 6+ months in business

2. Fundbox

Loan Type: Line of Credit
Amount: Up to $150,000
Quick funding, low documentation

3. Kabbage (Now American Express Business Blueprint)

Loan Type: Line of Credit
Amount: Up to $250,000
Fast, digital application

4. OnDeck

Loan Type: Term Loan
Amount: Up to $250,000
Great for businesses with strong cash flow

5. Lendio

Loan Marketplace
Matches you with lenders offering unsecured options

6. Accion Opportunity Fund

Loan Type: Term Loan
Designed for underserved small business communities

🏆 Best for Startups: Fundbox
💸 Best for High Revenue Businesses: BlueVine

5. Step-by-Step Guide to Getting a Business Loan Without Collateral

Step 1: Check Your Credit Score

Before applying, get your personal and business credit score. Use services like Experian, Equifax, or Nav.

Step 2: Prepare Financial Documents

You’ll need:

Bank statements (last 3–6 months)
Tax returns
Profit and loss statements
Business plan

Step 3: Compare Loan Options

Use loan comparison sites or directly approach lenders like BlueVine or Fundbox.

Step 4: Apply Online or In-Person

Fill out the application accurately. Most online lenders offer fast approvals (within 24–72 hours).

Step 5: Review Terms Carefully

Check:

APR
Fees
Prepayment penalties
Repayment term

Step 6: Get Funded

Once approved, funds are typically deposited in your business account within 1–3 days.

6. Tips to Increase Approval Chances

✅ Improve Credit Score: Pay down debt, fix errors in credit reports
✅ Boost Business Revenue: More income = better loan offers
✅ Shorten Your Loan Request: Start small, then scale up
✅ Have a Strong Business Plan: Especially if you’re a startup
✅ Build Relationships With Lenders: Especially local banks and credit unions

7. Pros and Cons of No-Collateral Business Loans

Pros	Cons
No risk to personal or business assets	Higher interest rates
Faster approval	Shorter repayment terms
Ideal for startups and small businesses	Lower borrowing limits
Minimal paperwork	Requires strong credit or revenue

8. Alternative Financing Options (No Collateral)

If traditional unsecured loans don’t work, try these:

1. Crowdfunding (Kickstarter, Indiegogo)

Raise money from the public. No repayment required.

2. Angel Investors

Private individuals who fund startups in exchange for equity.

3. Venture Capital (VC)

Larger investments for high-growth startups. Also equity-based.

4. Grants for Small Businesses

Government and private organizations often offer non-repayable grants for women, minorities, veterans, and tech startups.

5. Business Credit Cards

Useful for short-term expenses with 0% APR offers.

9. Real-Life Case Study: How Sarah Launched Her Startup With No Collateral

Sarah Lopez, a 29-year-old Latina entrepreneur in Miami, dreamed of starting her online retail business. With no property or equipment to offer, she feared rejection.

Here’s how she did it:

Built her credit score to 720
Opened a business bank account and kept revenue separate
Created a professional business plan
Used Lendio to compare loan offers
Got approved for a $50,000 line of credit through Kabbage

Now, her business earns over $200,000 annually.

✨ “I thought I needed a warehouse or property to get funding. Turns out, all I needed was a strong plan and consistent sales.” – Sarah

10. Final Thoughts: Is a Collateral-Free Loan Right for You?

Securing a business loan in the USA without collateral is absolutely possible—even in 2025. However, it’s important to understand the trade-offs:

You’ll pay higher interest
You’ll need stronger credit or revenue
You must stay on top of repayments

If you’re just starting out or want to scale without risking your personal assets, this route could be your ticket to success.

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📌 FAQs

Q: Can I get a business loan without personal guarantee or collateral?

Most lenders require at least a personal guarantee, but some fintechs offer limited-risk products.

Q: Are SBA loans available without collateral?

Yes, for smaller SBA 7(a) loans, collateral may not be required.

Q: How fast can I get a no-collateral business loan?

Online lenders may approve and fund you within 24–72 hours.