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That means a lender cannot directly seize your assets if you fail to repay the loan. However, even though an unsecured business loan is not backed by collateral, some lenders may still require you to sign a personal guarantee.
A personal guarantee gives a lender the right to go after your personal assets (think a home, car or cash) to recoup the loan if you fail to repay the debt. Unsecured business loans are likely to carry a higher annual percentage rate than secured business loans, but they typically fast cash loans 5000 with faster funding. Here are our recommendations for the best unsecured business loans for you: Unsecured business loans with no personal guarantee. Unsecured business loans with a personal guarantee.