Glossary

Unsecured financing

Unsecured financing is business financing that is not backed by a specific pledged asset. Without collateral to look to, lenders offering it lean more heavily on other structural details, revenue, cash flow, time in business, entity type, and the business credit profile. Some arrangements still involve a personal guaranty even when no asset is pledged. A funding marketplace like YesLane can help an owner see lenders across both unsecured and secured product types.