The short answer
Unsecured versus secured, plainly
| Secured financing | Unsecured revenue-based financing | |
|---|---|---|
| What backs it | A specific asset, such as a building or machine | Future revenue and the owner's promise |
| Appraisal needed? | Often | No |
| Typical speed | Slower | Faster |
| Typical cost | Lower | Higher |
| Risk if it goes wrong | Asset can be taken | Collection on revenue and guaranty |
The MFE no-collateral revenue-based financing page covers how that review works on the funding side.
The personal guaranty and lien reality
Most revenue-based agreements include a personal guaranty. In many contracts, it covers the owner's honesty and performance, such as not diverting deposits or closing the account, rather than a simple promise to repay if sales drop. Terms differ, so read yours closely.
Many agreements also file a UCC lien, a public notice that the funder has a claim on business assets. It is not the same as pledging one specific asset, but it can affect other financing later.
Ask for the exact language before signing, and have an attorney review it for large amounts. This page is not legal advice.
Check what your business qualifies for
Merchant Fund Express reviews revenue-based financing without collateral requests from $5,000 to $5,000,000. Scores from 500 are considered, and same-day decisions are common on complete files.
Check funding options with Merchant Fund ExpressWhat replaces collateral in the review
- Deposit consistency: the main signal. Steady months matter more than one big month.
- Average daily balance: shows a cushion for payments.
- Existing obligations: other advances and loans already debiting the account.
- Credit: MFE considers scores from 500, and stronger credit usually improves the offer.
- Time in business: MCA guidelines commonly start around 3+ months, working capital loans around 6+.
Who it fits, and who it does not
Fits: service businesses without hard assets, like a staffing agency, a dental office leasing its space, or a marketing firm, and owners who do not want their home involved.
Does not fit: owners with valuable equipment or property who can wait for a secured loan at lower cost. It also does not fit anyone uncomfortable signing a guaranty at all.
Funding brings customers. Is your website ready for them?
Businesses that qualify without collateral usually run on people and reputation, not machines, so your website is one of the few assets customers see. Cheap Cheap Websites builds professional sites from $399, with Website Care at $30/month covering hosting, HTTPS, backups, and small edits so that asset stays in good shape.
Illustrative example: a staffing agency with no hard assets
The figures below are illustrations built on stated assumptions, not offers or quotes. Real pricing depends on the full file.
Assumptions: $55,000 a month in deposits, a $40,000 request (about 0.73x), total repayment at 1.32x, a 2.5% fee, and 160 fixed business-day payments.
| Item | Amount |
|---|---|
| Funded amount | $40,000 |
| Fee (2.5%) | $1,000 |
| Net cash received | $39,000 |
| Total repayment ($40,000 x 1.32) | $52,800 |
| Daily payment ($52,800 / 160) | $330 |
| Cost over net cash received | $13,800 |
No property was pledged. The agency's deposit pattern did the work that a building would do in a secured loan.
Documents, and when secured is better
- 3 to 4 months of business bank statements, ID, a voided check, and a short application.
- A list of existing liens or loans, since a prior lien can affect the offer.
If you are buying a specific machine, equipment financing uses that machine as security and is often cheaper. If you already have strong credit and a year or more in business, a line of credit is worth checking before unsecured revenue-based money.
Related funding guides
Cheap Cheap Websites builds websites. It does not lend or make funding decisions. Funding is offered by our funding partner, Merchant Fund Express, and every request is subject to its review and approval. Figures on this page are illustrations, not offers. Updated October 15, 2026.