Net cash & total repayment
Account for fees deducted before funding and the total contractual cost.
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Unsecured Business Loans
Compare unsecured business financing in Canada and the USA when a specific asset is not the primary collateral. Review cash flow, credit profile, repayment structure and documentation with a commercial financing broker.
Canada + USA
Businesses we work with
One application
Compared across our lender network
[Typical amount]
Sized to your documented need
[Typical timeframe]
From approval to funding
What is an unsecured business loan?
At a glance: Unsecured financing relies more heavily on the operating business because a specific asset is not the primary collateral. Compare cash flow, credit profile, repayment frequency, guarantees, total cost and secured alternatives.
An unsecured business loan is assessed mainly on business performance, repayment capacity and credit rather than a specified asset pledged as primary collateral. “Unsecured” does not mean obligation-free: guarantees and other contractual protections may still apply. Confirm the actual security requirements before proceeding.
Illustrative example: A service company needs to fund recruitment and software for a new contract but owns little equipment. The review focuses on revenue, margins and existing payments. The company should also test whether repayments remain manageable if onboarding takes longer than planned.
What can you finance?
Operating expenses
Explain a defined payroll, supply or other eligible operating requirement and how it will be repaid.
Growth spending
Prepare the hiring, launch or expansion budget, with a realistic forecast and slower-growth scenario.
Business improvements
Itemize proposed costs and distinguish spending that may be better matched to equipment financing.
Understand what unsecured does—and does not—mean
Read the actual obligations
An unsecured business loan generally does not rely on specified collateral in the same way as an asset-secured loan. That description does not mean the obligation is risk-free or that a personal guarantee is never required. Review the agreement’s security and guarantee provisions rather than relying on the product label. The business must still demonstrate a credible capacity to repay.
Illustrative example: funding a defined rollout
A business budgets $30,000 for a software rollout and staff training, with $10,000 available from its own funds. The preliminary gap is $20,000 before fees or reserves. It expects efficiency gains, but those gains are not yet proven. A useful affordability test asks whether current operations can support the proposed payments if implementation takes longer and the expected savings arrive later.
Use a specific spending plan
Define the expense, timing and expected business benefit. A clear request is easier to assess than borrowing simply because an amount may be available. Separate essential spending from optional upgrades, and identify costs that can be postponed. The amount requested should reflect the project and repayment capacity, not just the absence of an asset to pledge or an advertised maximum elsewhere.
Who can qualify for unsecured business loans?
Documented business revenue, banking history and sufficient cash flow after existing commitments support the review. Operating history, credit and industry conditions also matter; no universal approval threshold applies.
Available options depend on your business location in Canada or the USA. Include the province or state, transaction currency and any cross-border activity in your request.
Apply for financing
How it works
The process, step by step.
01
Share the requirement
Describe the amount, purpose, business location and intended timing. Use the application link to begin.
02
Review the request
Provide the requested documents and clarify the costs, structure and conditions of any proposal.
03
Complete agreed conditions
If approved and you choose to proceed, complete the agreement and required conditions before funds are disbursed.
What lenders look at
Documents to prepare
Additional records may be requested for your transaction.
- Business and ownership details
- Recent bank statements
- Financial records and existing debts
- Use of funds and repayment forecast
For an in-depth calculation, use our business loan calculator or see all calculators.
What should you compare before proceeding?
Payment frequency
Assess the schedule against actual collections, not just average monthly revenue.
Guarantees & covenants
Read obligations separately from the unsecured label and ask for clarification where needed.
Show the strength of the operating business
Revenue quality matters alongside revenue size
Explain whether income comes from repeat customers, contracted work or irregular projects. Recent bank activity should be consistent with the financial records provided. Identify large one-off deposits and distinguish owner contributions from trading receipts. Stable, understandable cash movement can help a reviewer assess repayment; a single unusually strong month should not be presented as the normal operating pattern.
Include existing payments and credit context
Prepare a current debt schedule and explain obligations that already consume operating cash. If there have been missed payments or unusual disruptions, provide accurate context and any evidence of improvement. Do not assume one credit issue automatically decides the outcome, but do not treat an unsecured label as a way around a financial review. Requirements depend on the specific financing arrangement.
Document the request consistently
Use the legal business name, ownership details and location consistently across the application and supporting records. Identify whether the request is in CAD or USD and where operating receipts are earned. Have a spending breakdown and cash forecast ready. Additional information may be needed for a newer business, variable income or cross-border activity; providing context early reduces avoidable uncertainty.
Test affordability before selecting a proposal
Compare payments against cash receipts
Look at the amount and frequency of each payment and the date the first payment is due. A business paid monthly may feel pressure from more frequent withdrawals even if total monthly revenue looks sufficient. Add the actual schedule to a cash forecast, alongside rent, payroll and existing borrowing. Test a slower sales period rather than assuming every month matches the recent average.
Separate price from simplicity
A simpler collateral process does not automatically make a loan less expensive. Compare net proceeds, all applicable charges and total scheduled repayment. Ask what happens if you repay early and whether any cost remains payable. If more than one proposal is available, compare them over the same expected borrowing period so a shorter term or smaller payment does not obscure the overall cost.
Choose the structure that matches the need
For recurring cash fluctuations, a line of credit may deserve consideration. Where suitable assets are available, compare a secured arrangement and its additional obligations. For one defined investment, assess a term-loan schedule. The relevant question is which structure fits the business and its repayment source—not whether unsecured borrowing sounds easier. The related pages below explain these differences in more detail.
How should you assess a larger amount than you originally requested?
Return to the spending plan and cash forecast. Additional proceeds also create additional repayment obligations, even if the offer appears convenient. Identify a specific use and expected benefit for any increase, and consider whether that spending can wait. Check that the revised payment still fits a slower operating period and does not reduce the reserve needed for essential expenses. The amount available is not a recommendation to borrow it all. A disciplined request ties each part of the borrowing to a business purpose and assesses the resulting payments against realistic cash receipts rather than optimistic revenue projections.
Unsecured Business Loans compared with other options
Compare
Unsecured Business Loans
Secured Business Loans
Working Capital Loans
Primary purpose
Eligible costs without specific primary collateral
Business borrowing supported by assets
Defined operating cash requirement
Repayment / cash flow
Contractual payments; guarantees may still apply
Contractual loan payments; collateral supports obligations
Agreed payments from business cash flow
Main review focus
Cash flow, credit and existing commitments
Repayment capacity, asset value and priority
Revenue, obligations and intended use
Costs to compare
Net proceeds, interest or financing charges, fees and total repayment
Net proceeds, interest or financing charges, fees and total repayment
Net proceeds, interest or financing charges, fees and total repayment
General comparison only. Availability, security and final conditions vary by business, product and location. On smaller screens, scroll the comparison horizontally.
Explore your industry
Find guidance for your sector and how your business operates.
9 industries · Swipe or use the arrows to see them all.
Transportation & logistics
Explore financing considerations for carriers, logistics businesses and freight operations.
Explore industry →Construction & contractors
Plan around project costs, contract timing and day-to-day business needs.
Explore industry →Manufacturing & wholesale
Explore financing for production, order cycles and wholesale operations.
Explore industry →Farming & agriculture
Consider seasonal cash flow, operating needs and long-term farm investment.
Explore industry →Restaurants & hospitality
Explore financing for food-service businesses, hospitality operations and growth.
Explore industry →Medical, dental & wellness
Plan financing around practice operations, patient services and business expansion.
Explore industry →Technology & business services
Explore financing considerations for project delivery, hiring and growth.
Explore industry →Forestry, mining & energy
Consider contract cycles, operating requirements and investment in resource businesses.
Explore industry →Aviation & marine
Explore financing considerations for commercial aviation and marine operations.
Explore industry →Frequently asked questions
Does unsecured mean no personal guarantee?
No. A guarantee may still be required. Review the contract to understand who is responsible and for what.
Is unsecured financing always more suitable?
No. Compare costs, obligations and repayment fit with secured and other relevant options.
Can a new business apply?
Discuss the operating history and evidence available. Limited history may narrow available options and does not establish approval.
Does unsecured financing mean there is no personal guarantee?
Not necessarily. A personal guarantee is a promise to meet obligations and is different from pledging a specific asset. Ask what guarantees or security documents apply and what responsibilities remain if the business cannot repay.
Is this available in Canada and the USA?
Mehmi accepts financing enquiries from businesses in Canada and the United States. Include your province or state, business activity and transaction currency. Available structures and requirements vary by location and request.
What should I compare before accepting an offer?
Compare the total amount payable, upfront cash, payment frequency, security, personal guarantees and early-settlement terms. Check what happens at the end of the agreement and whether the payments remain manageable in a slower month.
Financing guides for your next step.
CANADIAN FINANCING GUIDE
Secured vs Unsecured Business Loan Canada
Explore the considerations, documents and contract questions for this financing topic.
Read article →CANADIAN FINANCING GUIDE
Unsecured Business Loans Canada: Approval Guide
Explore the considerations, documents and contract questions for this financing topic.
Read article →Tell us what your business needs.
Share your business location, intended use and amount requested to begin a financing discussion.
Apply for financingFinancing is subject to application review and approval. Availability, costs, terms and documentation vary by business, product and location. This page provides general information and is not a financing offer.