An unsecured business loan isn't tied to a specific asset the lender can seize — no pledged building, no pledged equipment. Instead, approval rests on your business revenue and credit. That means faster funding and no risk to a particular asset, in exchange for a higher rate than a fully secured loan.
How unsecured funding works
- Approval on revenue & credit — your cash flow does the talking.
- No asset appraisal — nothing to inspect, so it's quick.
- Personal guarantee — most lenders still require one.
- Fast funding — often the same or next business day.
Important nuance: "unsecured" means no specific collateral — but lenders usually still require a personal guarantee and may file a general UCC lien. If avoiding a guarantee is your goal, see no-personal-guarantee options.
Unsecured products to compare
Working capital loans, lines of credit, and revenue-based advances are all commonly available on an unsecured basis.
Typical guidelines
| Requirement | Typical minimum |
|---|---|
| Time in business | 6+ months |
| Monthly revenue | $10,000+ |
| Credit score | Flexible — revenue-based options available |
| Documents | Application + bank statements |
Frequently asked questions
What is an unsecured business loan?
A loan not tied to specific collateral — approved on revenue and credit, usually with a personal guarantee.
Is it really no collateral?
No specific asset is pledged, but expect a personal guarantee and possibly a general UCC lien.