If you seek a small business loan for a startup business or your next growth stage, the lender may request collateral to guarantee the loan repayment. However, it may be your top priority to secure a no-collateral loan for your business if your company lacks any assets that can serve as collateral. Fortunately, it is possible to obtain small business loans without collateral as a condition of approval. Listed below are the six popular options. Options Available for No-Collateral Business Loans: ✅ SBA 7(a) Loans The Small Business Administration (SBA) provides loans to small businesses through a network of lending partners. When you need working capital, you might consider several SBA loan programs, of which the 7(a) program is one of the most popular. The SBA 7(a) program does not require collateral for loans of up to $25,000, which can be beneficial if you only need a small loan. For loans exceeding $350,000, the SBA requires lenders to use collateral to the greatest extent poss...
This blog is a helpful guide with tips on securing funding for your small business, with insights into how to approach investors and secure loans.