Most franchise loans do require a personal guarantee from the business owner – this is standard, meaning you agree to repay the loan personally if the business can’t. Collateral requirements vary: SBA loans often will collateralize available assets (home equity, etc.), but lack of collateral isn’t always a deal-breaker for SBA if other factors are strong. Equipment financing uses the equipment as collateral. Some working capital loans might be unsecured (no specific collateral) but could have higher interest rates or shorter terms. We will clarify what’s needed for your chosen loan and help you understand your obligations before you commit.