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    5 Replies Latest reply on Apr 28, 2009 6:34 PM by bizconsultant

    We don't have collateral can we still get a loan?

    Dancer11 Newbie
      We are looking to buy a currently operating business. We are only looking for a loan fro $50,000, but we've heard from some lenders that they can't give us a loan without collateral. The business makes more than enough to cover the loan, plus we make enough to cover those expenses. We just bought our house a year ago and we're a pretty young couple so we just haven't built up that collateral. We don't have money to put down on it so we really do need the whole loan. Is it hopeless??
        • Re: We don't have collateral can we still get a loan?
          bmt2008 Adventurer
          Most traditional lenders will require collateral of some type or a large down payment. There are some alternative lender that will fund new business purchases without collateral but still require at least 20% down on your part.

          Other options:

          There are unsecured lenders that will provide up to $125K for business acquistion - no collateral or down payments required.
          There are other alternatives like micro credit and social lending options available that in combination could get you the funds you need.
          Depending on the business - you could use its assets (financial assets - a/r, equipment, past credit card reciepts) to fund the purchase.
          Is the owner willing to finance the purchase with a small down payment (small meaning whatever you can scrap together).

          Just some thoughts

          Business Money Today
          1 of 1 people found this helpful
          • Re: We don't have collateral can we still get a loan?
            LUCKIEST Guide
            Can we still get a loan?? YES

            Who are you??. You need to develop both a Business and Marketing Plan
            • Re: We don't have collateral can we still get a loan?
              Yes, you can get financing for the business. But, No, you can't get a loan without other factors. Here is a small article about business financing and business credit cards I put together....


              A true business credit card is a line of credit that is taken in the name of the business, under the business' credit. Activity, whether good or bad, is reflected on your business' credit report through D&B and other financial institutions, and the liability for any debts incurred and bills owed is with the business.However, some companies out there offer "business" credit cards which they require a person guarantee for. These institutions will often ask for a personal guarantee, and will almost always ask for a social security number from the person applying for the card. If this is the case, the credit card is not a business credit card, but is simply a personal credit card which is used for the business. The business is not liable for bills and debts - you are.When applying for a credit card for your business, watch out for areas asking for your SSN (and not your TaxID or EIN) and be wary of any credit card that asks for a personal guarantee. By ensuring that your credit card is in the name of your business, you can help to build your business' credit, while avoiding creating problems with your own.


              Many companies offer a list of credit cards that are issued under the business name only. Those lists typically run $300-$900, depending on the quality of the information inquiring. I would suggest starting your search online via google or yahoo. Search for "strong business credit" (just like that in quotes) to find services that sell the information.


              Good luck,


              Ilya Bodner


              Small Business Owner


              Initial Underwriting Group
              • Re: We don't have collateral can we still get a loan?
                bizconsultant Scout

                I deal with alternative strategies to help people acquire cash flowing businesses (even without collateral - as long as the cash flow is right and the prospective buyer has decent credit). Email me at and i can send you information on my performance based consulting service that can help you out.