# Unsecured (No-Collateral) Business Loans

> Not every business has real estate or equipment to pledge — and many funding products don't ask for it. Unsecured options approve primarily on your revenue and bank deposits, so Hoss Capital can match you to no-collateral funding without putting a specific asset on the line.

## Key takeaways
- Unsecured funding approves on your revenue and bank deposits rather than a pledged asset, making it faster to close and accessible to businesses without hard assets.
- No-collateral options include working capital, lines of credit, merchant cash advances, and revenue-based financing.
- "Unsecured" is not the same as "no personal guarantee" — almost every unsecured product still requires a personal guarantee.
- Because the lender has no asset to fall back on, unsecured funding usually carries higher rates and shorter terms, and amounts tend to be smaller than secured loans.

## Funding without pledging your assets

Secured loans require you to back the money with a specific asset — real estate,
equipment, or receivables — that the lender can claim if you default. Unsecured
funding skips that. Instead of asset value, underwriters look at how your
business performs: revenue, deposit consistency, and credit. That makes
unsecured products faster to close and accessible to service businesses and
others that simply don't have hard assets to pledge.

### No-collateral options worth knowing

- **Working capital** — short-term funding underwritten on recent bank
  statements, with no specific asset pledged.
- **Line of credit** — a revolving limit you draw from as needed; you only pay
  for what you use, and nothing is collateralized.
- **Merchant cash advance** — funding based on your sales and repaid as a share
  of daily or weekly revenue. The most accessible unsecured option.
- **Revenue-based financing** — repayment scales with revenue, which smooths
  out slower months.

### Understand the personal guarantee

The most important fine print in unsecured funding is the personal guarantee.
"No collateral" does not mean "no risk to you" — almost every unsecured product
asks you to personally guarantee repayment. That's the trade for skipping the
asset pledge.

### An honest note on cost

Because the lender has no asset to fall back on, unsecured funding usually
carries higher rates and shorter terms than secured loans. Hoss Capital always
checks whether a lower-cost secured option fits first, and only steers you
toward unsecured funding when speed or a lack of pledgeable assets makes it the
right call.

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Canonical: https://hoss-capital.pages.dev/business-loans/no-collateral/