How can I get a loan to start a business without collateral?
Loans to startups, especially without collateral, are very risky for lenders. To qualify, you’ll need to prove your trustworthiness to the lender.

That means having very strong credit. Having a solid business plan and being able to show the lender how you’ll earn the money to repay the loan will also be a big help.
Can I get a startup business loan with bad credit and no collateral?
If you have bad credit and no collateral, the odds are stacked against you when it comes to getting a loan. Finding a willing lender will be tough. Even if you do, expect to pay incredibly high interest rates and fees.
Do banks give business loans without collateral?
Yes, many banks offer collateral-free business loans. However, they often require borrowers with good credit and that the business has a track record of strong revenue that is sufficient to pay off the debt.
Do banks give loans to startups?
Yes, some banks offer loans to startups. Many of these lenders offer SBA loans that are designed for entrepreneurs. To qualify, you’ll need a high credit score and solid repayment history.
How can I get a business loan with no money or collateral?
Getting a business loan with no money or collateral is difficult. You’ll need some way to prove to the lender that you won’t default. You should expect to have to provide a personal guarantee or maybe even find a willing cosigner to show the lender that you’re serious about repaying your debt.


Startup business loans with no collateral are one way that you can fund your new company. However, they’re hard to qualify for and can be expensive.

Before you apply, do your research, compare lenders, make sure you meet their eligibility requirements, and submit a complete, detailed application to help give the lender confidence in your ability to repay the debt.

About the Author

TJ Porter

TJ Porter

Personal Finance Writer

I have in-depth experience in reviewing financial products such as savings accounts, credit cards, and brokerages, writing how-tos, and answering financial questions both simple and complicated.

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