“Do I need collateral?” is one of the most common questions business owners ask before applying for funding — and in 2026, the honest answer is: often no. Plenty of business funding is available without pledging specific assets. Here’s how collateral actually works and what your options are.
Secured vs. unsecured funding
Secured funding is backed by a specific asset — equipment, real estate, or receivables — that the lender can claim if the loan isn’t repaid. Unsecured funding isn’t tied to a specific asset; approval leans more on your cash flow and credit profile.
Common options that typically need no specific collateral
- Working capital / revenue-based financing — underwritten on your bank-statement cash flow.
- Business line of credit — many lines are unsecured for qualified businesses.
- Merchant cash advance — advances against future sales.
Where collateral still helps
Equipment financing uses the equipment itself as collateral, and SBA loans may require collateral for larger amounts. Offering collateral can also unlock better terms. A personal guarantee (a promise to repay personally) is common even on “unsecured” funding — that’s different from pledging a specific asset.
Frequently asked questions
Can I get a business loan with no collateral?
Yes. Working capital, revenue-based financing, many lines of credit, and merchant cash advances are commonly available without pledging a specific asset, though a personal guarantee is often required.
Does offering collateral get me a better deal?
Often, yes. Collateral lowers the lender’s risk, which can improve your amount, rate, or term — but it isn’t required for every product.
Want to see your no-collateral options? Start your application and get matched with funding sources that fit your business.