- 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.