Many banks make the claim that business loan collateral is an “absolute must.” They say there is no grey area, no room for discussion, and no other option. Applicants either supply sufficient business loan collateral — which is often a mix of business and personal assets — or they don’t get a loan. End of story. However…
There’s actually much more to the story, because business loan collateral is only mandatory for BANK business loans. There are many other business loans available that don’t require any kind of collateral, such as:
Again, it bears repeating: none of the above require collateral, or even excellent credit. In fact, even a past discharged bankruptcy typically isn’t a deal-breaker, and businesses don’t have to be profitable or cash flow positive.
If business loan collateral is optional rather than mandatory, it begs the question: why do banks insist on it at all? Wouldn’t they serve more customers — and therefore make more profit — if they eliminated this requirement?
Even with their demands for business loan collateral, banks make an enormous amount of profit by going upstream and targeting large enterprises that have no problem pledging assets such as real estate, securities, and so on. As such, banks have zero incentive to change their restrictive lending policies.
To learn more about getting a fast business loan without collateral — such as a working capital loan, business line of credit, or merchant cash advance — contact the National Business Capital team today.
Your consultation with us is free, and there’s never any pressure to move forward. As you’ll see from our stellar reputation, we strive to do the right things the right way. If that means you choose us to be part of your business success story, we’d be honored — and rest assured we’ll be there to help make it happen.
National Business Capital & Services is the #1 FinTech marketplace offering small business loans and services. Harnessing the power of smart technology and even smarter people, we’ve streamlined the approval process to secure over $1 billion in financing for small business owners to date.
Our expert Business Financing Advisors work within our 75+ Lender Marketplace in real time to give you easy access to the best low-interest SBA loans, short and long-term loans and business lines of credit, as well as a full suite of revenue-driving business services.
We strengthen local communities one small business loan at a time. For every deal we fund, we donate 10 meals to Feeding America!
Megan Capobianco is the Marketing Manager at National Business Capital & Services. Megan is passionate about helping business owners along their journey - providing them with relevant content they can use in their day-to-day operations.