The short answer
At a glance
| What 'no collateral' means | No specific asset pledged; repayment is based on revenue |
|---|---|
| Common products | Merchant cash advance, revenue-based financing, unsecured working capital |
| Personal guarantees | Common; read the terms and ask what they cover |
| Liens | A general business lien (UCC filing) is common even without specific collateral |
| Documents still needed | 3 to 4 months of business bank statements, ID, voided check, short application |
| Larger requests | Can need financial statements and tax returns |
| MCA guideline | Commonly from about $7,500 a month, often 3+ months, flexible credit |
| Cost | Usually higher than secured loans because there is no pledged asset |
| Avoid if | A claim says you need no documents and no review at all |
Before you apply: checklist
- Confirm what the agreement calls collateral, if anything
- Read the section on personal guarantees and ask what they cover
- Ask whether a UCC lien will be filed and on what
- Have 3 to 4 months of business bank statements ready
- Make sure the bank account matches the business name on the application
- Compare total payback against a secured option if you have assets
- Be wary of stated-income offers that never check deposits
- Keep copies of everything you sign
Check what your business qualifies for
Merchant Fund Express reviews no-collateral and low-document funding 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 ExpressUnsecured vs secured in plain English
| Secured | Unsecured / no collateral | |
|---|---|---|
| Pledged asset | Yes, such as property or equipment | No specific asset |
| Based mainly on | Asset value and credit | Revenue, deposits and credit |
| Speed | Slower, may need appraisals | Often faster |
| Cost | Usually lower | Usually higher |
See the no-collateral revenue-based financing guide for more.
No-doc, low-doc and stated income claims
'No-doc' in business funding usually means no tax returns or financial statements for smaller requests. It almost never means zero documents. Funders still verify revenue through bank statements.
'Stated income' means you tell the funder your revenue and they take it at your word. In practice, legitimate funders check. An offer that skips verification entirely is a warning sign. The no-doc revenue-based financing guide explains what is typically asked.
For the credit side, read the no credit check business loans guide.
Personal guarantees explained
Personal guarantees are the owner's promise to stand behind the business obligation under the conditions in the agreement. Many unsecured products include one because there is no asset to fall back on. Terms differ, so read what triggers it and what it covers. This is not legal advice; have an attorney review if you are unsure.
Funding brings customers. Is your website ready for them?
Funding usually pays for growth: more stock, staff, equipment or marketing. Make sure the customers that growth brings find a website that explains what you do and makes it easy to call, book or buy. Cheap Cheap Websites builds professional sites from $399, with Website Care at $30/month.
Illustrative example: unsecured vs equipment-secured
| Assumption | Unsecured advance | Equipment financing |
|---|---|---|
| Amount | $25,000 | $25,000 |
| Assumed cost | Factor rate 1.30 | $8,000 total finance charge |
| Total payback | 25,000 x 1.30 = $32,500 | 25,000 + 8,000 = $33,000 |
| Assumed term | 9 months | 36 months |
| Monthly payment | 32,500 / 9 = about $3,611 | 33,000 / 36 = about $917 |
The total paid is similar here, but the monthly load is very different. Unsecured money is faster and needs no asset; equipment financing spreads cost over the equipment's life.
These figures are illustrations, not offers. Real terms depend on the full file and are set by the funder at review.
Red flags and how Merchant Fund Express handles this
- 'No documents, no review, money today' claims.
- Upfront fees before funding.
- Promises that owner guarantees will never be part of the deal.
- Agreements that do not show total payback.
Merchant Fund Express reviews revenue-based financing at Merchant Fund Express based on deposits rather than a pledged asset. A standard file is 3 to 4 months of business bank statements, ID, a voided check and a short application. Larger requests can need more. Credit from 500 is considered. To start, apply with Merchant Fund Express.
Related
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 16, 2026.