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Compare · 2026

Secured vs Unsecured Business Loans for Contractors

Pledge collateral or not? Here's how secured and unsecured funding compare for contractors.

Short answer: Unsecured working capital requires no collateral — approval is based on your revenue and deposits, so nothing is pledged. Secured funding (like equipment financing) is backed by an asset, which can mean larger amounts or lower cost. Most contractors use unsecured working capital for cash flow and secured financing only when buying equipment.

Reviewed by the Funded Contractor Capital Funding Team · Updated July 2026

How funding works, step by step

From application to funding in four steps — most contractors complete it within a day.

1

Apply in 5 minutes

Complete a short online application. It uses a soft credit pull that does not affect your score.

2

We review your deposits

Approval is based on your last 3 months of business bank statements — not tax returns or the contract.

3

Get your offer

Review your amount and terms up front, with any fees disclosed before you accept. No obligation.

4

Get funded

Sign and receive funds by ACH, often within 24 hours of approval.

Secured vs unsecured

How the two compare for a contracting business.

CriteriaUnsecuredSecured
CollateralNoneAn asset (e.g. equipment)
Approval based onRevenue & depositsAsset + revenue
Typical useWorking capital, payrollEquipment purchase
Amounts$25K – $5MUp to asset value
Risk to other assetsNone pledgedThe pledged asset
CreditFICO 500+FICO 500+

Why contractors fund with us

  • One application shows you every option you qualify for
  • FICO 500+ accepted; approval on revenue
  • Funds in as little as 24 hours
  • We recommend the lowest-cost fit, not the priciest
  • Fixed payments or revenue-share — your choice
  • No tax returns — 3 months of bank statements

What you need to apply

  • US-based contracting business
  • 6+ months in business
  • ~$30,000+ in monthly revenue
  • Last 3 months of bank statements
  • Valid EIN and business bank account

Frequently asked questions

Do contractors have to pledge collateral to get funded?
No — unsecured working capital requires no collateral and is based on revenue. Only asset-based products like equipment financing are secured, by the equipment itself.
Which is better for cash flow?
Unsecured working capital, because it funds fast on your deposits without tying up any assets.
Which option can I get fastest?
Most of these fund within 24 hours of approval. The application takes about 5 minutes with a soft credit pull that doesn't affect your score.
Can I qualify with bad credit?
Yes — FICO 500+ can qualify, because approval is weighted toward revenue and bank-deposit consistency rather than credit score.
Is this a business loan or a cash advance?
Both are available. The right structure depends on your revenue, credit, and how you prefer to repay — fixed payments or a share of your deposits. We show you the options you qualify for before you commit.
What can I use the funds for?
Any legitimate business purpose — payroll, materials, equipment, mobilization, covering the gap between draws, or growth. There are no restrictions on how you deploy working capital.
Are there any upfront fees to apply?
No. Applying and getting a decision is free, and any fees are disclosed in your offer before you accept — so there are no surprises.

Sources & further reading

Figures on this page are typical 2026 industry ranges provided for general information; your actual terms are set at application.

Get funded with or without collateral

Apply in 5 minutes with a soft credit pull.

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Comparisons reflect typical 2026 industry structures for general information and vary by lender and underwriting; your actual terms are set at application. Product and company names referenced are the property of their respective owners.