Starting a business takes courage, planning, and capital. But for most founders, the hardest part isn’t the idea, it’s finding startup funding without collateral.
Traditional lenders want security. They ask for assets, property, or equipment before offering a loan. But what if you’re a first-time entrepreneur with no assets yet? Or you run a digital startup built on ideas, not inventory?
The good news is you still have options. Funding today is more flexible, and unsecured business financing lets you grow without risking personal or business property.
This post explains why collateral is such a hurdle, shows your best collateral-free options, and explains how Bizfund can help you access capital that fits your goals, not your assets.
Why Collateral is a Hurdle for Startups
Most banks require collateral to secure loans. It’s how they reduce risk. But that’s often the first problem for new businesses.
Here’s why startups struggle:
- Limited assets: New businesses rarely own equipment, real estate, or inventory to pledge.
- No credit history: Without proof of revenue or strong credit, lenders see repayment as risky.
- High risk perception: Unless you’re in tech or e-commerce, banks view startups as unstable.
About 70% of startups rely on personal savings. Around 4% start with less than $50,000.
Modern financing offers better alternatives. With options like revenue-based funding and merchant cash advances, you can access funds quickly—no collateral required.
Collateral-Free Funding Options for Startups
Not having assets doesn’t stop your growth. Here are some ways to fund your business in 2025 without pledging collateral.
1. Unsecured Business Loans
These loans depend on your credit, not your assets. Lenders review your credit score, business plan, and revenue projections.
Startups with solid credit and strong plans can qualify for up to $150,000 or more. Rates are higher than secured loans, but approval is faster and easier.
Use these funds to launch marketing campaigns, hire staff, or invest in new tools.
2. Merchant Cash Advances (MCA)
An MCA isn’t a loan, it’s an advance on your future sales. You repay a small portion of your daily or weekly revenue until the advance is paid off.
Pros:
- Fast approval (often within 24–48 hours)
- No collateral
- Repayment adjusts to your sales
Cons:
- Fees are higher than traditional loans
If your startup accepts credit card payments or has steady online sales, this option can keep your cash flow stable.
3. Invoice Factoring
If clients take time to pay, invoice factoring helps you get cash sooner. You sell your unpaid invoices to a lender and receive 70–85% upfront. When your client pays, you get the rest minus a small fee.
This keeps your cash flow steady while waiting for customers to pay.
4. Business Credit Cards
A business credit card is an easy way to access funds fast. Use it for short-term costs like supplies or subscriptions.
Paying on time helps you build business credit, which strengthens your future financing options.
5. Revenue-Based Financing (RBF)
In RBF, investors fund your business in exchange for a fixed percentage of your future monthly revenue until you repay an agreed total.
You keep full ownership, and payments adjust with your income.
Consider RBF if:
- You have consistent revenue
- You don’t want to give up equity
- You prefer flexible repayments
6. Crowdfunding Platforms
Sites like Kickstarter or GoFundMe let you raise money from people who believe in your idea, no debt or collateral needed.
Tell your story clearly. Use an engaging video and transparent rewards to attract backers and build an early audience.
7. Government Grants and Microloans
In Canada, several grants and microloan programs support startups:
- Canada Small Business Financing Program (CSBFP)
- BDC Small Business Loans
- Startup Canada Women Entrepreneur Program
They require business plans and projections, but no collateral—ideal for new founders.
How Bizfund Helps You Get Funding Without Collateral
Getting rejected by banks wastes time and energy. Bizfund helps startups access collateral-free funding quickly.
Here’s how it works:
- Apply online: Fill out a short form—no piles of paperwork.
- Get matched: We connect you with funding options that fit your goals and revenue.
- Receive funds fast: Once approved, you get funds within 24 to 48 hours.
We don’t judge you by your assets or credit history. We focus on your potential.
Whether you run an e-commerce shop, a local café, or a SaaS startup, Bizfund is the right funding solution for your needs.
Smart Tips for Getting Funded Without Collateral
- Strengthen your credit: Keep personal and business debt low.
- Write a solid business plan: Lenders want clear goals and realistic numbers.
- Track revenue: Consistent income builds trust.
- Stay honest: Transparency helps lenders say yes.
Final Thoughts
Getting startup funding without collateral isn’t as hard as it used to be. New financing models and digital lenders make it easier to access capital fast.
Your idea deserves a chance to grow, even without assets to pledge. Bizfund can help you get the funding you need—no collateral, no delays.
Ready to move forward?
Contact Bizfund today and see how you can secure funding to launch or grow your startup.
