How to Get a Startup Loan with No Collateral in the USA

Starting a business is an exciting venture, but securing funding can be a major hurdle—especially if you don’t have collateral to offer. Fortunately, there are several ways to get a startup loan with no collateral in the USA. This guide will explore the best options, eligibility requirements, and tips to improve your approval chances.

Why Get a Startup Business Loan with No Collateral?

Many new entrepreneurs lack assets like real estate or equipment to secure a traditional loan. Fortunately, lenders offer unsecured business loans that don’t require collateral. These loans rely on creditworthiness, revenue potential, and business plans rather than physical assets.

Key Benefits of No-Collateral Startup Loans

✅ No risk of losing personal or business assets
✅ Faster approval process (compared to secured loans)
✅ Ideal for service-based or online businesses with minimal physical assets

Best Startup Business Loans with No Collateral in the USA

1. SBA Microloans (U.S. Small Business Administration)

The SBA Microloan Program provides loans up to $50,000 for startups and small businesses. These loans are issued through nonprofit lenders and typically don’t require collateral for smaller amounts.

Key Features:

• Loan amounts: $500–$50,000

• Interest rates: 8%–13%

• Repayment terms: Up to 6 years

• Best for: Minority-owned, women-owned, and veteran-owned startups

2. Business Credit Cards

A business credit card is an excellent way to finance startup costs without collateral. Many cards offer 0% introductory APR for 12–18 months, allowing interest-free financing.

Top Business Credit Cards for Startups:

• Chase Ink Business Unlimited® (No annual fee, 1.5% cash back)

• American Express Blue Business Cash™ (2% cash back, no annual fee)

• Capital One Spark Cash Plus (Unlimited 2% cash back)

3. Online Business Loans (Alternative Lenders)

Online lenders like Fundbox, OnDeck, and Kabbage offer unsecured business loans with flexible terms. These lenders focus on credit scores and cash flow rather than collateral.

Top Online Lenders for No-Collateral Loans:

4. Personal Loans for Business Use

If your startup lacks business credit, a personal loan can be a viable option. Lenders like Upstart, SoFi, and LightStream offer loans up to $100,000 without requiring collateral.

Pros of Personal Loans for Startups:

• Fast funding (as quick as 1–3 business days)

• No business credit history required

• Fixed monthly payments

5. Crowdfunding & Peer-to-Peer (P2P) Lending

Platforms like Kickstarter, Indiegogo, and LendingClub allow startups to raise funds without collateral.

Best Crowdfunding & P2P Lending Options:

• Kickstarter (Reward-based funding)

• GoFundMe (Donation-based)

• LendingClub (Peer-to-peer business loans)

How to Qualify for a No-Collateral Startup Loan

Since lenders take on more risk with unsecured loans, they have stricter requirements. Here’s how to improve your approval odds:

1. Build a Strong Personal Credit Score (650+)

Most lenders require a minimum credit score of 600–650 for no-collateral loans. Improve your score by:
✔ Paying bills on time
✔ Reducing credit card balances
✔ Fixing errors on your credit report

2. Write a Solid Business Plan

Lenders want to see a detailed business plan with:

• Market analysis

• Revenue projections

• Funding needs

3. Show Proof of Revenue (If Available)

If your startup is already generating income, lenders will be more willing to approve your loan. Provide:
✔ Bank statements
✔ Invoices
✔ Sales forecasts

4. Consider a Co-Signer

If your credit is weak, a co-signer with good credit can boost your approval chances.

FAQs About No-Collateral Startup Loans

Can I get a startup loan with bad credit and no collateral?

Yes, some lenders offer bad credit business loans, but expect higher interest rates.

What’s the easiest loan to get for a startup?

• Business credit cards (if you have good credit)

• SBA Microloans (for small funding needs)

• Online lenders (fast approval)

How fast can I get a no-collateral business loan?

Some online lenders fund loans in as little as 24 hours.

Final Thoughts

Getting a startup loan with no collateral in the USA is possible if you explore the right options. Whether through SBA loans, business credit cards, online lenders, or crowdfunding, there’s a financing solution for every entrepreneur.