Small Business Loan Without Collateral

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It can be frustrating trying to get small business loans without collateral to qualify. This is especially difficult if your credit score isn’t great. In addition, getting a bank loan takes time, so a loan without collateral can be even more difficult if you need the funds quickly.

However, traditional bank loans are not the only means available for getting business financing. There are several types of business loans that require no collateral, and many are faster to acquire than traditional bank loans. Here are 3 different loans that don’t require any collateral:

1. Is Equipment Financing right for me?

Equipment Loans Technically, an equipment loan is a collateral-based loan because the equipment purchased is used as collateral. The difference is that the collateral used to acquire the loan is purchased with the funds from the loan, so no prior existing asset is required.

As opposed to asking for capital outright, equipment loans are more secure than others, and lenders are sometimes more willing to work with you. This type of financing can also help you get the new equipment for your business right away.

Business equipment loans help business owners acquire equipment that would normally be too expensive to buy with cash. This is a great way for companies that want to grow their revenues with a certain tool or piece of machinery.


  • Relatively easy to obtain
  • Adds to a net value
  • Leads to increased revenue


  • Only can be used for the purchase of equipment
  • UCC filing against businesses

Loan Amount

Up to $5,000,000

Loan Term

From 12 – 72 months

Interest Rate

7.5% – 45%

Payment Frequency


Time to Funds

2 – 4 weeks


Business equipment loans are very similar to auto loans, where the purchased item itself acts as collateral. Because of this, qualifying for an equipment loan can be relatively easy. Approvals are typically based on credit score, years in business, financial history and value of the equipment.

What is an Equipment Loan?

Equipment financing is used exclusively to acquire business-use equipment. Because every industry has it’s own type of equipment, the types of equipment loans are diverse. For nearly every type of equipment you can think of there’s going to be a lender that finances that specific equipment.

What Types of Businesses is it Good For?

Every type of equipment and every type of industry, but here are a couple of examples. In the construction industry, there are lenders that offer equipment financing for heavy machinery. In agriculture, there are lenders that specifically help small farmers.

How Much Will an Equipment Loan Cost?

Equipment financing interest rates range from seven to forty-five percent. With equipment financing, the purchased equipment itself is used as collateral for the loan. There are also lenders who will lend on application only as long as the collateral is available and a down payment of 50% is available as well.

Most of the time, the immediate ROI from the equipment pays for the loan earlier than expected, making it an awesome financing option.

Equipment financing may also be available under the SBA 7(a) loan program. See our SBA 7(a) section for additional detail.

Why Use BitX Funding?

BitX Funding mission is to empower your small business by making small business loans without collateral simple through options, speed, and trust. Whether you are looking for an acquisition loan or equipment loan, BitX Funding offers hundreds of different loan products from a variety of lenders. Finding out which business loan is best for you is why we’re here.

Visit our TrustPilot page to see what our borrowers think!

Sign up today and in minutes be matched with the perfect business loan.

2. Is a Merchant Cash Advance right for me?

Merchant Cash Advance: This refers to a type of financing in which a lender provides money upfront, and takes repayment by automatically deducting a percentage of your business’ future credit card sales.

You can typically qualify if you have 4-6 months of credit card sales revenue history. While it is more expensive than traditional business loans, the merchant cash advance is an option for startup business loans with no collateral that can provide funds quickly.

A cash advance is a solid option for business owners in need of fast access to capital to help grow their business. A newer or existing business might run into an opportunity or an unfortunate situation – these financing options allow you to borrow against future earnings and get funded immediately.


  • Easy to qualify for this type of advance
  • You’re not giving up equity
  • No collateral is required


  • Higher interest rates in some cases
  • Additional fees for this type of advance

Loan Amount

$5,000 – $200,000

Loan Term

3 months – 24 months

Interest Rate

18% – 40%+

Payment Frequency

Daily / Weekly / Monthly

Time to Funding

24hrs – a week


This type of financing is innovative, unique, and easy to qualify for, but must be used in the right situations. As you do your homework consider things such as reputation, ratings, and client feedback. BitX Funding will match you with the best loan for your business and then walk you through the entire process step-by-step. Visit our Trustpilot page to see what our borrowers think!

What is a Merchant Cash Advance?

ACH Advance: The most popular way is to have the lender look at the last 4 – 6 months of bank statements to determine the cash flow of the business and advance the money as soon as the next day. Payments are then made electronically when the customer gives the lender authorization to debit directly from the business’s bank account for the purpose of bill payment.

MCA Advance: This is done by getting the aging reports on a business’s credit card revenue. A third party will then collect a suitable amount to pay the loan back by daily withholding a percentage of the credit card deposits. The loan will then be paid back over an average of 3 to 12 months. These loans are non-traditional but serve their purpose although rates can be much higher.

What Types of Businesses is it Good For?

A cash advance allows a business to borrow against future earnings. Requirements for this type of financing are extremely lenient due to the nature and terms of the loan. Generally, any business that needs access to fast working capital can qualify.

What are the Minimum Requirements?

Normally, credit is not pulled and financial documents are not required for approval. Popular loans are granted after the lender is able to look at the last 4 – 6 months of bank statements to determine the cash flow of the business.

How Much Will a Cash Advance Cost?

Merchant cash advance factor rates can be very expensive. Traditional cash advance loans will have lower interest rates compared to non-traditional loans. But non-traditional rates although much higher serve a valuable purpose. The bottom line is to know how much capital you’re going to need, who your lender is, what their reputation is, and what you can afford.

BitX Funding walks you through this process step-by-step to ensure you are getting the best business loan for your situation.

3. Is Accounts Receivable Financing right for me?

Accounts Receivable Financing: A/R financing gives you working capital ahead of time, based on upcoming payments from your customers’ accounts. You sell your open invoices (accounts receivable) to a third party called a “factor” for a percentage of their value upfront (usually 80% to 90%).

A/R (accounts receivable) financing, also referred to as factoring, allows the business owner to receive capital in the event you are owed money for services completed.

If your small business is in a crunch because your services are provided and payment is not collected for 30 days or more after the work is completed, there are financial factoring companies that can help. The companies will take a look at your clientele who is owing you money and depending on their credibility the financial company will advance funds and then collect the funds from your client to pay the advance off. This can be optimal because the focus is on the business that owes the receivable and not the company receiving the advance.


  • Typically lower interest rates
  • Time savings for collecting A/R
  • Doesn’t require any collateral


  • Customers may prefer to deal directly with you
  • Financing costs may exceed


The credit rating of the borrower is key in determining eligibility for this type of loan, not yours. The job or service you’re providing must be fully completed and make sure you have a clear business record.

What is Accounts Receivable Financing?

A/R financing (factoring) is the selling of purchase orders or accounts receivables for cash now. This type of financing allows the business owner to receive capital in the event you are owed money for services completed.

What Types of Businesses is it Good For?

This type of financing is valuable when a contract for products or services is received, but the business lacks the cash to fulfill the contract.

What are the Minimum Requirements?

The borderers’ credit rating is key in determining eligibility for the loan. Personal credit is not usually examined by the lender when determining approval. You need to be invoicing creditworthy businesses for your product or service.

How Much Will A/R Financing Cost?

The rates are generally lower than what you would receive with a cash advance loan or a daily payment loan depending on the strength of the creditor. There also can be an additional cost per invoice fee.

Small Business Loan Without Collateral

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BitX Funding start-up financing program connects entrepreneurs and business owners with $25,000 – $150,000+ in unsecured business lines of credit. This program can provide you with funding in as little as 10 days and is typically offered with 0% interest financing for the first 6-18 months.Designed to help meet short-term needs, such as unexpected events, or to take advantage of a great deal. Typically, most small business owners qualify.BitX Funding offers true long-term business loans with automatic monthly payments. If you are looking to Fund larger projects that pay back over a longer term with rates as low as 5.49% this option may be right for you?Business lines of credit allow you to draw funds whenever you need. Funds will be deposited directly into your bank account. Repay via automated weekly debits over six months. Your available balance replenishes as payments clear. Lines of credit can go as high as $100,000 with interest rates averaging around 13%.
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Let Us Help

BitX Funding is the online marketplace for small business owners looking to fund a project.

We specialize in connecting small business owners with lenders who will compete for your business. We believe small business owners drive the economy and we are passionate about helping your company reach its full potential.

You can reach a loan specialist by toll free at 1-800-824-2407, or email at or applying online here and we can guide you on which loan is the best fit for your business.



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