Most business loans — especially more traditional ones — require a personal guarantee. It lowers the risk for the lender if your business can’t repay the loan. It can also make it easier to qualify for a loan and may help you secure more competitive rates and terms. But if you have strong business financials, good credit or collateral to offer, you may be able to forgo the requirement.
Best business loans with no personal guarantee
Check out our top picks of lenders that may not require a personal guarantee if you check other boxes.
Best for comparing lenders
Lendio business loans
4.8 / 5
★★★★★
Lendio is a business loan marketplace with loan options that don’t require a personal guarantee to qualify. For example, business cash advances don’t typically require a personal guarantee and Lendio offers revenue advances up to $2 million with factor rates starting as low as 1.08. Plus, going through a marketplace like Lendio gives you access to more than 75 lenders and 11 loan types with a single application and only a soft credit check needed to compare offers.
- Compare multiple lenders with one application
- Offers 11 types of business financing
- Only a soft credit check to apply
- Some loans require a personal guarantee
- APRs can be high with some lenders
- Marketplaces often attract excessive solicitation
| Loan amount | $1,000 – $5,000,000 |
|---|---|
| APR | Varies by lender |
| Min. Credit Score | 580 |
| Loan term | 3 months to 25 years |
| Requirements | Operate business in US for 6 months or more, have a business bank account, minimum 580 personal credit score, at least $8,000 in monthly revenue. |
| Loan amount | $1,000 – $5,000,000 |
|---|---|
| APR | Varies by lender |
| Min. Credit Score | 580 |
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Best for a business line of credit
Fundera business loans
4.9 / 5
★★★★★
Fundera offers business lines of credit up to $750,000, and some of its lending partners don’t require a personal guarantee. It also offers more lenient requirements than some loan types. To qualify, you only need three to six months in business, $50,000 to $300,000 in annual revenue and a 600 credit score. But the best rates and terms are reserved for more established businesses with good to excellent credit and higher revenues.
- LOCs up to $750,000
- Accepts fair credit
- Positive customer reviews
- Rates as high as 99%
- May include multiple added fees
- Limited number of partners
| Loan amount | $2,500 – $5,000,000 |
|---|---|
| APR | Varies based on lenders |
| Loan term | 3 months to 25 years |
| Requirements | $60,000+ of annual revenue, 550+ personal credit score, in business for 6+ months |
| Loan amount | $2,500 – $5,000,000 |
|---|---|
| APR | Varies based on lenders |
| Min. Credit Score | 520 |
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Best for invoice factoring
FundThrough Invoice Factoring and Financing
4.5 / 5
★★★★★
For eligible businesses, FundThrough offers invoice factoring — with no personal guarantee requirement — with funding up to 100% of the value of your invoices. Account set-up is free, and there is no commitment, which is a departure from many factoring companies. It also offers next-day funding on approved invoices, and it’s fully transparent about costs. Rates start as low as 2.75% for 30 days, and there are no hidden fees. But you need at least $100,000 in total accounts receivables or invoices to one customer, and it’s not suitable for all businesses.
- Finances up to 100% of invoices
- Rates start at 2.75%
- No additional fees
- Rates increase the longer it takes your customer to pay
- Lose control of your invoices
- Not suitable for all businesses
| Loan Amount | $500 to $10M |
|---|---|
| Fee for Terms | 2.75% to 8.25% |
| Min. Credit Score | 500 |
| Loan Term | 1 day – 61+ days |
| Requirements | At least $100k in accounts receivable to one customer, invoice B2B or government agencies, invoices are for completed work, no construction or real estate, no explicit liens on receivables |
| Loan Amount | $500 to $10M |
|---|---|
| Fee for Terms | 2.75% to 8.25% |
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Best for established businesses
National Business Capital business loans
4.3 / 5
★★★★★
National Business Capital has a number of business financing products that don’t require a personal guarantee. It offers loan amounts up to $10 million, with a variety of traditional loan options in addition to specialty funding such as accounts receivable and asset-based financing. But it doesn’t disclose its rates or credit score requirements, and you’ll typically need at least one year in business and $500,000 in annual revenue to qualify.
- Financing up to $10 million
- Wide variety of loan products
- Only requires one year in business
- Requires $500,000 in annual revenue
- Doesn’t disclose rates
- Some loan options require personal guarantees
| Loan amount | $100,000 – $10,000,000 |
|---|---|
| APR | Varies by lender |
| Min. Credit Score | 700 |
| Loan term | 6 to 120 months |
| Requirements | 700+ FICO score, 1+ Year in Business, $500,000 in Annual Revenue |
| Loan amount | $100,000 – $10,000,000 |
|---|---|
| APR | Varies by lender |
| Min. Credit Score | 700 |
Best for equipment financing
Equipment loans from Triton Capital reach up to $250,000 and don’t require a personal guarantee if you meet certain conditions. It also offers rates starting as low as 5.99% and a fast approval process, with funding as soon as one business day. In addition to equipment financing, Triton provides SBA loans and working capital. But it doesn’t disclose its requirements to qualify, and its largest equipment loan is on the low side.
- Rates as low as 5.99%
- Fast approval and funding
- Offers other loan products
- Low maximum loan amount
- Doesn’t disclose range of rates
- Requirements to qualify not clear
| Loan amount | Up to $250,000 |
|---|---|
| APR | Starting from 5.99% |
| Loan term | 12 to 60 months |
| Requirements | Not stated |
| Loan amount | Up to $250,000 |
|---|---|
| APR | Starting from 5.99% |
Methodology: How we chose these lenders
Finder’s business loan experts analyzed dozens of lenders offering loans that may not require a personal guarantee. We ultimately chose lenders with competitive rates, fast funding, flexible loan terms and a variety of loan types.
Some of the criteria we used to evaluate lenders include:
- Interest rates
- Fees
- Loan amounts
- Loan terms
- Repayment plans
- Turnaround times
- Credit score requirements
- Time in business requirements
- Revenue requirements
- Reputation of the lender
How to compare business loans with no personal guarantee
Aside from looking for loans that don’t require a personal guarantee, consider these factors when choosing a business loan lender.
- Rates. Rates between lenders vary widely so be sure to explore the best deals on business loans. And keep in mind that you may pay higher rates when a personal guarantee isn’t required.
- Additional fees. Depending on the lender and loan type, you may be charged fees on top of interest, which adds to the loan’s cost.
- Turnaround times. Online lenders often have relatively quick funding — some as soon as the same day — but other options may take a little longer. No doc loans tend to offer the quickest turnaround since they typically use technology to streamline the application process.
- Loan terms. Loan terms vary significantly depending on the loan type — which affects how often and how large your payments are — so be sure to assess your budget to make sure you can manage the repayment schedule.
- Lender requirements. Business lenders that offer loans without a personal guarantee may have more strict requirements to qualify. Research the credit score, revenue, time in business and other requirements to make sure you at least meet the minimum criteria.
What is a business loan with no personal guarantee and how does it work?
A business loan with no personal guarantee is basically the same as any other type of business loan — it just doesn’t require that you agree to repay the loan out of your personal assets. In other words, if your business can’t make its loan payments, the lender can’t require business owners to repay the loan themselves.
In general, most business lenders require owners with at least a 20% stake in the company to sign a personal guarantee as part of the loan contract. It’s essentially a risk-reducing measure, so if the business defaults, the lender has another way to get its money back. A personal guarantee on a business loan can also make it easier to get approved and qualify for better rates and terms.
Pros and cons of business loans with no personal guarantee
Consider the benefits and drawbacks of getting a loan that doesn’t require a personal guarantee.
Pros
- No risk to personal assets
- Helps to build business credit
Cons
- Rates and fees may be higher
- Loan amounts may be lower
- May have stricter requirements to qualify
Compare other types of business loans
What is the Finder Score?
The Finder Score crunches 12+ types of business loans across 35+ lenders. It takes into account the product’s interest rate, fees and features, as well as the type of loan eg investor, variable, fixed rate – this gives you a simple score out of 10.
To provide a Score, we compare like-for-like loans. So if you’re comparing the best business loans for startups loans, you can see how each business loan stacks up against other business loans with the same borrower type, rate type and repayment type.
Read the full Finder Score breakdown
Types of business loans
Here’s a list of both traditional and alternative business loans worth exploring.
| SBA Loans | $13,000 to $5 million | Up to 25 years | Established businesses with decent credit that don’t qualify for other types of funding |
| Equipment financing | Up to 100% of the cost of the equipment | 3 to 10 years | Businesses that need heavy equipment or other expensive machinery |
| Term loans | Up to $2 million | 1 to 10 years | Businesses with good credit looking for large loan amounts and predictable monthly payments |
| Business lines of credit | $2,000 to $250,000 | 6 months to 5 years | Businesses looking for immediate short-term funding or want a renewable lending source |
| Microloans | $500 to $50,000 | Up to 6 years | Startup businesses or women- or minority-owned firms |
| Invoice factoring | 70% to 90% of unpaid invoices | 1 to 3 months | Business-to-business (B2B) companies with a lot of outstanding invoices |
| Invoice financing | 70% to 80% of unpaid invoices | 1 to 3 months | B2B companies with a lot of outstanding invoices |
| Merchant cash advance | $5,000 to $200,000 | 3 to 12 months | Retail businesses or others that have a lot of credit card sales |
How to qualify for business loans with no personal guarantee
Business lenders typically look at your credit score, monthly or annual revenue and how long you’ve been in business. To get a loan without a personal guarantee, you’ll need to meet — if not exceed — these general business loan requirements:
- Revenue. Most lenders want to see at least $10,000 in monthly revenue, but some may require more or less than that. Expect to need more than the minimum requirement to qualify for a business loan with no personal guarantee.
- Credit score. Online lenders typically have more lenient credit requirements than banks, but most require at least 600 or more. However, if you want to forgo the personal guarantee, you may need a credit score over 700. Having good business credit is also a plus.
- Time in business. In most cases, you’ll need to be in business for at least six months to a year to qualify for any type of business loan, but you may need more business experience to skip the personal guarantee requirement.
How to apply for personal loans with no guarantee
If you already have an existing relationship with a lender, you might make that your first stop when looking for a loan without a personal guarantee. Beyond that, doing your research and being prepared will help you obtain loan approval.
- Determine your need. What is the purpose of the loan, and how much do you need to achieve your goals?
- Assess your budget. Figure out how much you can afford by calculating loan payments and seeing if they fit into your budget.
- Check your credit. Knowing your credit score before you apply will help steer you toward lenders that work with borrowers in your credit range. If you’re looking to skip a personal guarantee, knowing your business credit score is worthwhile as well.
- Compare lenders. Consider interest rates, fees and loan terms from multiple lenders to find the best deal — keeping in mind you may have a smaller pool to work with. It’s also a good idea to research lender requirements to make sure you meet its minimum qualifications.
- Gather your documents. Be prepared to submit tax returns, bank statements, profit and loss statements or other financial documents. Ask the lender for a list of required documents before you apply.
- Apply. Once you’ve found the right lender, you can fill out the application and submit the required documents. You may want to talk to a loan specialist if you have questions or need any guidance on the application.
- Review and sign. If approved, read over your loan agreement, paying attention to rates, fees and repayment terms before signing.
Frequently asked questions
Can I get a business line of credit without a personal guarantee?
Yes, you may be able to qualify for a business line of credit with no personal guarantee with some lenders. However, you’ll need to meet or exceed the lender’s basic requirements to qualify, and you may pay higher rates and fees than borrowers willing to sign a guarantee.
Can I get a business credit card without a personal guarantee?
Possibly. While most major banks don’t issue business credit cards with no personal guarantee, there are a few options to consider. But they may be difficult to qualify for or have limited uses.
What should I do if I was denied a business loan?
If you were denied the loan, you can contact the lender to find out why. It’s possible you missed something on your application that triggered a denial, and there may be an easy fix. Or, you can discover what was lacking in your application and attempt to remedy it. For example, if you were denied because you have a lot of debt, you could offer collateral to secure the loan — or a personal guarantee.
