Unsecured business loans are financing where you don't pledge a specific asset, such as a building, a truck or a piece of equipment, for the funder to claim if the business can't pay. The decision rests mostly on your revenue, your time in business and your credit. The usual unsecured options are revenue-based financing (a merchant cash advance), a business line of credit, a short-term loan, a small SBA 7(a) loan and a business credit card. "Unsecured" only describes collateral, though. Many of these products still ask the owner for a personal guarantee, and a funder may file a UCC-1 financing statement that covers business assets in general. Through our network, revenue-based financing runs from $5,000 to $2,000,000 and typically funds in one to two business days, and lines of credit go up to $250,000.
What "unsecured" means on a business loan
A secured loan names collateral. The lender takes a security interest in a particular asset, and if the loan goes unpaid it can take and sell that asset to recover what it is owed. A mortgage on a warehouse, a lien on a dump truck and a pledge of a savings account are all secured.
An unsecured loan names no such asset. The funder is relying on the business to keep earning and paying, so it studies revenue, cash flow and credit more closely and prices for the extra risk it carries. That is why business loans without collateral tend to be smaller and shorter than secured ones, and why they can be decided in days instead of weeks. Nobody has to appraise a property or inspect a machine before money moves.
The Federal Reserve's 2026 Report on Employer Firms shows how rare debt with no backing at all is. Among small employer firms with debt, 59% had secured it with a personal guarantee, 51% with business assets, 38% with personal assets and 10% with a portion of future sales. Only 10% had used no collateral or guarantee at all. Most owners with an unsecured loan have signed something, so it pays to know exactly what you are agreeing to.
Personal guarantees and UCC liens on unsecured business funding
Unsecured business funding usually comes with one or both of the following, and neither one is a pledge of a specific asset like a building or a truck.
- A personal guarantee is the owner's promise to stand behind the business's obligation. Depending on how it is written, it can cover the full balance or only the owner's own conduct, such as not moving the account or selling the business without telling the funder. Our guide to business loans without a personal guarantee explains the kinds of guarantee and where funding without one is realistic.
- A UCC-1 financing statement is a public notice, filed with the state, that a funder has an interest in some of the business's property. Under UCC Section 9-504, a filing can describe that property as "all assets," which is why a filing on an unsecured product often reads like a blanket lien. It tells later funders where they stand in line. Our explainer on the UCC lien covers what a filing means, how long it lasts and how it is released after payoff.
So an offer can be a no collateral business loan and still carry a guarantee and a UCC filing. That combination is common, and it is what lets a funder decide on your revenue without valuing a building or a fleet. When you compare offers, read what the guarantee covers and what the filing describes, and ask us if either is unclear.
Types of unsecured business loans
Five kinds of financing are usually unsecured. They differ in speed, in how they are repaid and in what the funder reads before it decides.
Revenue-based financing (merchant cash advance)
With revenue-based financing, a funder buys an agreed amount of your future sales for a lump sum paid now, and you repay it with a set daily or weekly payment, sized on your sales, until it is paid. Because it is a purchase of future receivables, it is technically not a loan, and the funder decides mainly from your business bank statements. It usually needs no collateral, which is why it is the fastest option in our network. Revenue-based financing runs from $5,000 to $2,000,000 and typically funds in one to two business days. It fits owners who need money quickly for stock, payroll, repairs or a busy season and whose revenue is stronger than their credit file. The merchant cash advance explainer walks through an example deal in dollars.
Unsecured business line of credit
An unsecured business line of credit gives you a limit to draw from as bills come due, with no specific asset pledged. You repay weekly or monthly on what you have drawn, and repaid amounts become available again. A line of credit through our network goes up to $250,000, offers often come back within a day, and some programs discount early payoff. It suits repeating gaps, such as payroll that comes due before customers pay. Our business line of credit guide compares secured and unsecured lines in more detail.
Short-term loans
A short-term loan is a lump sum repaid in fixed daily, weekly or monthly payments over several months to a couple of years. Banks and online lenders offer them, often without naming collateral, and they tend to weigh credit score and time in business more heavily than a revenue-based funder does. They fit an owner who wants a fixed payment and a firm end date.
Small SBA 7(a) loans
SBA loans are secured when the business has assets to pledge, but the smallest ones are an exception. Under the SBA's SOP 50 10, the rulebook for 7(a) lenders, lenders are not required to take collateral on 7(a) Small and SBA Express loans of $50,000 or less. Above $50,000, the lender has to identify collateral as carefully as it would for a similar loan of its own, and for Standard 7(a) loans the SBA expects the loan to be secured by available fixed assets, up to the loan amount. The same SOP says a loan should not be declined solely because collateral is short, though the SBA's guarantee is not a substitute for collateral the business does have. Every owner of 20% or more still signs a personal guarantee. SBA loans take weeks and ask for tax returns, a personal financial statement and a debt schedule, and when your need can wait, we work on SBA and bank loans too.
Business credit cards
A business credit card is unsecured revolving credit for smaller purchases, and for most small businesses the issuer looks at the owner's personal credit and asks the owner to accept personal liability. Cards work well for supplies, software and travel, and they are rarely large enough to cover payroll, inventory buys or a major repair.
Secured options worth comparing
When you have an asset to put up, secured financing can mean a larger amount, a longer term and a lower price, at the cost of more paperwork and time. Two secured options sit close to the unsecured choices above.
- Equipment financing uses the machine, vehicle or oven you are buying as its own collateral, so you don't pledge anything else. Offers typically come back in one to two business days, and how equipment financing works covers terms, down payments and leases.
- A commercial equity loan or line borrows against commercial real estate you own. It can reach much larger amounts than unsecured funding, but it needs an appraisal and takes weeks. Our guide to commercial equity loans explains the three ways to borrow against business property.
| Option | What backs it | Typical timing | How you repay |
|---|---|---|---|
| Revenue-based financing | No specific asset; decided on deposits | One to two business days | A set daily or weekly payment until the agreed total is paid |
| Unsecured line of credit | No specific asset; decided on revenue and credit | Offers often within a day | Weekly or monthly on what you draw |
| Short-term loan | Usually no specific asset | Days to a few weeks | Fixed daily, weekly or monthly payments |
| SBA 7(a) of $50,000 or less | Collateral not required by SBA rules | Several weeks | Monthly payments |
| Equipment financing | The equipment being bought | One to two business days | Fixed monthly payments |
| Commercial equity loan | Commercial real estate you own | Several weeks | Monthly payments |
How unsecured business loan lenders decide without collateral
With no asset to fall back on, unsecured business loan lenders and revenue-based funders read your cash flow closely. The main document is four months of business bank statements, and underwriters look at a handful of things on them.
- Average monthly deposits show what the business brings in and set the size of an offer.
- The number of days the balance runs low or negative shows how much room the account has for a new payment.
- How steady deposits are from week to week tells the funder whether the payment will be comfortable in an ordinary month.
- Payments to other funders that already come out of the account show how much of your cash flow is spoken for.
Time in business and credit count too, and each funder weighs them differently. Credit matters more to some funders than others, and a lower score narrows the options without ending them. The funders we work with generally look for about a year in business and about $20,000 a month in deposits. If you're not there yet, apply anyway. Some funders work with newer or smaller businesses, and we'll tell you what's realistic.
Skipping collateral is one of the main reasons owners go to these funders. In the Federal Reserve Banks' 2025 Report on Employer Firms, 42% of firms that applied to an online lender said they chose it partly because no collateral was required, compared with 28% at finance companies, 20% at large banks and 9% at small banks.
What unsecured funding costs, in dollars
Unsecured funding is priced for speed and for a decision built on revenue, so it costs more than a loan backed by real estate. The way to judge it is in dollars, set against what the money does for the business.
- A revenue-based funder states its price as a factor rate. In an example where you receive $50,000 at a factor rate of 1.30, you repay $65,000 in total, so the cost is $15,000. Paid at about $2,500 a week, that clears in roughly 26 weeks. Ask for the total payback, the payment, any fees taken out of the funded amount and whether there is an early payoff discount.
- A line of credit charges a fee or interest only on what you have drawn, so a $100,000 line used for $20,000 for six weeks costs far less than a $100,000 lump sum held for a year. Check the draw fee, the payment schedule and whether paying early lowers the cost.
- An SBA 7(a) loan carries interest. In an example of $50,000 at 11% over 10 years, the payment is about $689 a month and the interest over the life of the loan is about $32,650. You wait weeks for that lower payment and provide more paperwork.
These numbers are illustrations, not quotes. Your price depends on your deposits, time in business, credit and the funder, which is why seeing several offers side by side is worth the few minutes it takes to apply.
How to apply for unsecured funding through Today Capital Group
You fill in one short application and send your last four months of business bank statements, either as PDF uploads or by connecting your bank read-only. Getting matched does not need a hard credit pull, because most funders prequalify from bank statements and a soft pull, and if a funder wants a hard pull in final underwriting, you know first.
Your file goes to the funders in our network that fit your business, and offers come back side by side. We go through them with you before anything is signed, including what each guarantee covers, whether a UCC filing is part of the deal and whether a line, an advance or an SBA loan suits the need better. There is nothing to pay to apply or to see offers, and you are under no obligation to take one. Most applicants are funded within one to two business days of choosing an offer, some the same day.
Start your application with your statements ready, or call (818) 351-0225 if you want to talk through which option fits before you apply.
Questions about unsecured business loans
Can you get unsecured business loans?
Yes, most businesses with steady revenue can, because revenue-based financing, many lines of credit, short-term loans, SBA 7(a) loans of $50,000 or less and business credit cards are usually issued without a specific asset pledged, though the owner often signs a personal guarantee and the funder may file a UCC-1.
Who is eligible for an unsecured business loan?
Funders look mainly for consistent deposits in a business bank account, a track record of operating and credit that fits their program, and the funders we work with generally look for about a year in business and about $20,000 a month in deposits, though some work with newer or smaller businesses, so it is worth applying to find out what is realistic for yours.
What is the monthly payment on a $50,000 business loan?
It depends on the product, so as examples, a $50,000 SBA 7(a) loan at 11% over 10 years costs about $689 a month, while a $50,000 advance at a factor rate of 1.30 means repaying $65,000 in total, about $2,500 a week over roughly 26 weeks.
Is an SBA loan secured or unsecured?
Most SBA loans are secured, but under SBA rules lenders are not required to take collateral on 7(a) Small and SBA Express loans of $50,000 or less, while larger loans are secured by the business's available assets and every owner of 20% or more signs a personal guarantee.
What is an unsecured business line of credit?
It is a credit limit you can draw from as needed without pledging a specific asset, repaid weekly or monthly on what you have drawn, and through our network these lines go up to $250,000 with offers often within a day.
