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.
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.
Pros
Compare multiple lenders with one application
Offers 11 types of business financing
Only a soft credit check to apply
Cons
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.
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.
Pros
LOCs up to $750,000
Accepts fair credit
Positive customer reviews
Cons
Rates as high as 99%
May include multiple added fees
Limited number of partners
Loan amount
$2,500 – $5,000,000
APR
Varies by lender
Loan term
3 months to 25 years
Requirements
$60,000+ of annual revenue, 550+ personal credit score, in business for 6+ months
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.
Pros
Finances up to 100% of invoices
Rates start at 2.75%
No additional fees
Cons
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
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.
Pros
Financing up to $10 million
Wide variety of loan products
Only requires one year in business
Cons
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
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.
Pros
Rates as low as 5.99%
Fast approval and funding
Offers other loan products
Cons
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.
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.
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.
Lacey Stark is a freelance personal finance writer for Finder, specializing
in banking, loans, investing, estate planning, and more. She has 20
years of experience writing and editing for magazines, newspapers, and
online publications. A word nerd from childhood, Lacey officially got her
start reporting on live sporting events and moved on to cover topics
such as construction, technology, and travel before finding her niche in
personal finance. Originally from New England, she received her
bachelor’s degree from the University of Denver and completed a
postgraduate journalism program at Metropolitan State University also
in Denver. She currently lives in Chicagoland with her dog Chunk and
likes to read and play golf. See full bio
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