# No Personal Guarantee Business Loans

> A personal guarantee makes you personally liable if the business can't repay — so owners often look for funding that leans on collateral or receivables instead. True no-personal-guarantee financing is the exception, not the rule, but options like invoice factoring and asset-backed structures can limit or remove personal liability. Hoss Capital helps you find the ones you actually qualify for.

## Key takeaways
- A personal guarantee makes you personally liable if the business can't repay, putting personal assets at risk — true no-PG financing is the exception, not the rule.
- Invoice factoring, equipment financing, revenue-based financing, and some merchant cash advance structures may limit or remove a traditional personal guarantee.
- Removing a PG rarely means no collateral; lenders often replace it with a UCC lien against specific business assets like receivables or equipment.
- Without your personal assets as backstop, lenders price in more risk through higher rates, fees, or smaller advances.

## No personal guarantee business loans

A personal guarantee (PG) is a promise that you'll repay the debt personally if
your business can't — which can put your home, savings, and other personal assets
at risk. Understandably, many owners want funding without one. The honest reality:
true no-PG financing is the exception, and it usually comes with trade-offs in
cost or amount. Hoss Capital helps you find the structures that limit or remove
personal liability and that you actually qualify for.

### Options that may not require a personal guarantee

- **Invoice factoring** — you sell invoices you've already earned, so approval
  rests on your customers' credit and the receivable itself rather than a PG.
- **Equipment financing** — the equipment secures the loan, so lenders may take a
  lien on the asset instead of a personal guarantee.
- **Revenue-based financing** — repayment flexes with your sales; some structures
  rely on revenue and a UCC lien rather than a personal guarantee.
- **Merchant cash advances** — based on future card sales; some come without a
  traditional PG, though typically at higher cost.

### Personal guarantee vs. UCC lien

Removing a PG rarely means "no collateral." Lenders often replace the guarantee
with a **UCC lien** against specific business assets — the receivables, equipment,
or revenue being financed. That keeps your personal assets out of it while still
giving the lender a claim if the business defaults.

### The honest trade-off

When a lender can't fall back on your personal assets, they price in more risk:
higher rates or factor rates, additional fees, or a smaller advance. We'll always
check whether a lower-cost option fits first, and we'll tell you in plain terms
exactly what each offer requires — including any guarantee or lien — before you
sign.

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