# Revenue-based financing without collateral uses revenue as the backstop

URL: https://cheapcheapwebsites.com/business-funding/no-collateral-revenue-based-financing/
Updated October 15, 2026. Funding offered by Merchant Fund Express (https://merchantfundexpress.com/no-collateral-revenue-based-financing/); Cheap Cheap Websites builds websites and does not lend.

## The short answer
Revenue-based financing is usually unsecured, meaning you do not pledge specific property like real estate or equipment. Instead, the review relies on your deposit history, and the contract commonly includes a personal guaranty from the owner and a general lien on business assets. Read both before signing, since 'no collateral' does not mean 'no obligation'.

## 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.

## What 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.

## 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.

## Frequently asked questions
**Does revenue-based financing need collateral?** Usually no specific asset is pledged. The agreement commonly includes a general UCC lien on business assets and a personal guaranty from the owner, so read the contract to understand exactly what you are agreeing to.

**Will I have to sign a personal guaranty?** In most revenue-based agreements, yes. Its scope varies. Many cover performance and honesty terms rather than a plain repayment promise. Read it carefully and get legal advice for larger amounts.

**What is a UCC lien?** It is a public filing showing a funder has an interest in business assets. It does not transfer ownership, but other lenders will see it, and it can affect future financing until it is released after payoff.

**Is unsecured funding more expensive?** Generally yes, because the funder has less to fall back on. In exchange, it is faster and does not require appraisals or pledging your home or equipment.

## Website for growing businesses
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.

Apply for funding: https://merchantfundexpress.com/current-application.html?src=ccw-no-collateral-revenue-based-financing
Website plans: https://cheapcheapwebsites.com/products