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Small business loans and funding typically require some form of collateral or assets pledged. However, this is not always the case. First, you the business owner, (merchant) may not want to place collateral for the loan. This can come from various forms of collateral such as accounts receivable, equipment, real estate, unimproved or improved land. Do what you want to do and not what you have to do. The Pros Of Unsecured Business Loans/Advances: *Shorter application process.