Can I Get a Business Loan with No Assets?

As anyone who has ever owned a business will know, it is very easy to get yourself into a bad financial situation.

It is often very difficult to balance the ins and outs of your business, and a lot of people don’t actually realize the amount of money that you need behind you to make your business successful.

This is the main reason why a lot of people use business loans to start up their companies. 

However, getting a business loan can be very difficult if you don’t have any assets.

There are lots of different business loans available, but the majority will require you to put down collateral. And this is nearly impossible if you don’t have any assets. 

But, it is not completely impossible, which is why we’ve put together this handy guide to help you. So, if you want to find out more about how to get a business loan without any assets, then keep on reading.

Can I Get a Business Loan with No Assets?

It is difficult to get a business loan without any assets to support you, but it is by no means impossible. So, yes, you can get a business loan without any assets.

If you are a new business, there is a good chance that your company does not have many assets.

You may have also invested your own liquid assets into kick-starting the company, which means you will not have any assets to use as collateral either.

So, if you need a business loan, but have no assets to support you, you are not alone.

There are lots of entrepreneurs all over the world who have put their own personal finance on the line for the sake of following their dream, who then find themselves needing a loan to keep the business going.

This is why it is possible to get a business loan without needing to provide collateral to be approved.

Depending on your own financial situation, the journey to getting a business loan could be easy, or it could be a lot more difficult.

If you have no assets, but have a clear financial history and a good credit score, then you have a better chance of getting a business loan without needing any collateral.

But, if you have a bad credit rating, then banks might be wary of lending to you when you essentially have nothing to lose if things go wrong.

So, the answer is yes, you can get a business loan without any assets. There are lots of loans that don’t require collateral, but they are harder to find and more difficult to be accepted for.

Loans that don’t require collateral are often referred to as ‘unsecured loans’, so let’s have a look at what this term means.

Secured vs Unsecured Loans

All loans, both business and personal, will fall into one of two categories: secured or unsecured.

These terms are broadly used across the financial industry, and generally depend on whether you need to put down collateral to get the loan, or not.

If you aren’t familiar with loans, then you might not be familiar with the term ‘collateral’. If a bank loan requires you to put down collateral to be able to get the loan, then you generally need assets to be able to do this.

Some banks will want liquid collateral, which means you need to give a certain amount of cash, in order to receive the loan.

While others might take a lien on your fixed assets, such as real estate, private land, or equipment, to secure your loan.

By taking collateral, the lender ensures that you are just as invested in the loan as they are. So, if the business fails, you both have something to lose.

Whereas unsecured loans do not require any collateral. These are probably the most straight-forward of the loans as you don’t need to give anything to the bank in order to secure your loan.

There are lots of different benefits of this type of loan, mainly revolving around the fact that unsecured loans are more flexible than secured loans, giving you more freedom with how you use the money.

But, as the lender is not taking any collateral for an unsecured loan, it is likely that they will take a much deeper look at your financial history to understand whether they can trust you with their money.

So, if you have bad credit, this can make getting an unsecured loan a bit tricky.

Benefits and Limitations of Unsecured Loans

If you haven’t got any assets, then your only option for a business loan is an unsecured one.

As we have mentioned, there are both benefits and limitations to this type of business loan, so let’s take a deeper look at what they are. Starting with the benefits that they offer.

Some benefits of unsecured business loans include:

  • No Assets Needed - If you haven’t got any assets that you can use as collateral, then the main benefit of an unsecured loan is that you don’t need any. Unsecured loans do not require anything from the borrower, so if you haven’t got any assets, but need money, this is the best type of loan for you.
  • Flexible Repayment Schedule - Most unsecured loans come with a flexible repayment schedule, with many lenders offering low rates and no hidden fees. You can also get unsecured short term and long term loans, allowing you to choose the one that fits your needs best.
  • Fast Approval - As they don’t require any collateral from you, the approval process for unsecured loans is generally quicker. This makes them the perfect choice if your business needs money quickly.
  • Freedom - Unsecured loans often offer a lot more freedom and flexibility in how you spend the money that you receive. There are no limits to this style of business loan, allowing you to use the money as you see fit.

However, there are also some limitations of unsecured business loans. These include:

  • Comparatively, Higher Interest Rates - While we mentioned that some lenders will offer low interest on unsecured loans, this is only relative to other lenders. When you compare the interest rates for unsecured loans with secured loans, they are much higher. 
  • Borrow Limited Amounts - Some reputable lenders have huge limits on the amount that you can borrow in an unsecured loan compared to a secured loan. One example is the SBA 7(a) loan which offers loan options exceeding $350,000 if you opt for a secured loan. But, if you want an unsecured loan with this company, you will be capped at $25,000. 
  • More Reliant on Credit History - As you are not required to put down collateral for an unsecured loan, lenders will likely take a lot more interest in your own credit history. So, you might struggle to get an unsecured loan from a reputable lender if you have a poor credit rating.

Things that Could Stop You from Getting an Unsecured Loan

Now that we’ve covered the benefits and limitations of this type of loan, let’s take a look at some of the things that could stop you from being approved for an unsecured loan.

Generally speaking, there will always be a lender out there who will be willing to lend you money as long as you are happy to compromise on some things.

But, there are some things that can put the more reputable lenders off approving you.

We have already mentioned this briefly, but the main reason that a lender might deny you an unsecured loan is if you have bad credit history.

A lot of businesses will have a poor credit history because it is very easy for a client to miss a payment, and for you to fall behind on something that you owe.

Small hiccups like this shouldn’t prevent you from getting an unsecured loan.

But, if you have ever declared bankruptcy, or have any County Court Judgements (CCJ), then you might struggle to be approved for an unsecured loan. 

But, if you need money, it is always worth speaking to a lender to assess your situation.


In short, yes, you will probably be able to get a business loan, even if you have no assets.

You will need to apply for an unsecured loan as these do not require collateral, but there are lots of different lenders that could help you get a business loan. Even if you have no assets to support you.