Key Takeaways
- Revenue-based funding from Bankable Funds typically requires no hard collateral for amounts up to $750K
- A general business lien (UCC-1 filing) is standard — it gives lenders a security interest in business assets
- Non-citizens who don't own US real estate or equipment can still qualify based on business revenue alone
- Personal guarantees may be required — a promise of personal responsibility, not a lien on specific personal assets
- Collateral-backed products (equipment loans) may offer lower rates but require specific assets as security
Revenue-based business loans for non-citizens typically require no traditional hard collateral. This is a defining advantage of revenue-based funding over traditional bank loans, which routinely require real estate, equipment, or other physical assets as security. Bankable Funds secures its funding through a general lien on business assets rather than requiring specific collateral from non-citizen business owners.
What Is a General Business Lien (UCC-1)?
When Bankable Funds funds your business, we file a UCC-1 (Uniform Commercial Code) financing statement with your state. This is a public notice of our security interest in your business assets — accounts receivable, inventory, equipment, and other business property. It is not a lien on your home, personal bank accounts, or immigration-related documents. The UCC-1 protects the lender's position without requiring you to pledge specific assets.
Collateral Requirements by Loan Type
| Loan Type | Collateral Required | Non-Citizen Eligible |
|---|---|---|
| Revenue-Based Funding | UCC-1 general lien (no specific assets) | Yes |
| Equipment Financing | Equipment itself (self-collateralizing) | Often yes |
| SBA 7(a) up to $500K | Business assets only | Excluded (March 2026) |
| SBA 7(a) over $500K | Personal real estate required | Excluded (March 2026) |
| Traditional Bank Term Loan | Real estate, equipment, personal guarantee | Usually excluded |
| Business Line of Credit | Varies — often requires real estate | Often excluded |
Personal Guarantees for Non-Citizens
Bankable Funds may require a personal guarantee from the primary business owner. A personal guarantee is a legal promise that you personally are responsible for repayment if the business cannot pay. It is important to distinguish this from collateral: a personal guarantee obligates you personally but does not create a lien on specific assets unless a judgment is obtained after default.
For non-citizens, personal guarantee enforceability may be limited if you leave the US — a reality lenders understand. Bankable Funds may structure personal guarantee requirements differently for visa holders with temporary status.
Equipment as Self-Collateralizing Funding
If you need funding for a specific piece of equipment (restaurant equipment, vehicles, construction machinery), equipment financing uses the equipment itself as collateral. This is accessible to non-citizens because the security interest is in the equipment — not in real estate or citizenship-based assets. Equipment financing often offers lower rates than revenue-based advances due to the security interest.
Frequently Asked Questions
Yes. Revenue-based funding from Bankable Funds requires no US real estate, equipment, or other physical assets as collateral. The business's revenue stream is the security. Non-citizens who rent rather than own, or who arrived recently without accumulated US assets, qualify on revenue alone.
A UCC-1 financing statement is a public notice filed by lenders when they have a security interest in your business assets. It is visible to other potential lenders who run business credit checks. The existence of a UCC-1 may affect your ability to get additional funding from other lenders who want a first-lien position.
No. A UCC-1 lien is a business financial document with no connection to immigration. USCIS does not review UCC filings in immigration cases. The lien attaches to business assets, not to personal immigration status.
If you leave the US and the business ceases operations, the UCC-1 lien holder (Bankable Funds) has the right to claim any remaining business assets. Personal assets in your home country are generally not reachable by a US lender. This is why some lenders require larger personal guarantees from temporary visa holders.
Equipment financing is better when you have a specific equipment need and the equipment itself is the primary purpose of the funding. The rates are typically lower because the equipment provides real collateral. Revenue-based funding is better for general working capital, inventory, hiring, and marketing. Many businesses use both simultaneously.
Yes. Non-citizens can own commercial real estate in the US and use it as collateral for business loans. If you own a commercial property, lenders may offer better terms against that security. Residential real estate owned by non-citizens can also potentially be used as collateral, though this varies by state and lender.
A blanket lien (general UCC-1 lien) covers all of your business's assets — accounts receivable, inventory, equipment, furniture, and intellectual property. It is distinct from a specific lien on one asset (like an equipment loan). Most revenue-based funding is secured by a blanket business lien.
Generally yes. As funding amounts increase, lenders want stronger security. Revenue-based funding up to $750K at Bankable Funds is secured by the business's revenue stream and UCC-1 lien. For very large commercial loans (millions), real estate collateral becomes standard across all lender types.