Buying guide

Easiest way to raise debt without equity: 8 non-dilutive paths compared

From SBA loans to $20M+ project finance, here is what actually qualifies, what it costs, and how fast it closes.

By the Ezra teamUpdated 2026-11-11

Quick answer: The easiest way to raise debt without equity is a senior secured loan or asset-backed facility against revenue, contracts, or hard assets, matched through a debt advisor or lender platform rather than cold-calling banks. For raises under $1M, SBA loans or revenue-based financing are fastest. For $20M+ growth or project capital, a structured advisory process across multiple lenders, like the one Ezra runs, closes faster and with better terms than a solo search.

How we picked

We compared instruments by qualification bar, typical cost, time to close, and ceiling on deal size, using Federal Reserve Small Business Credit Survey data, SBA published rate caps, and each lender's own published terms, checked 2026-11-11. We favored breadth (SBA to project finance) over a single niche so founders at any stage can find their lane.

What this is not: We have not originated a loan with every lender listed. Rates, approval odds, and loan caps come from the lenders' own published rate sheets and Tier-1 survey data, not hands-on underwriting tests, and they move with the prime rate and credit cycle.

Disclosure: Ezra is our own product and appears as one of eight items below; we also link to competitor and third-party lenders we do not earn from.

Why business owners choose debt over equity

Debt lets you keep the company you built. Equity costs a permanent slice of every future dollar of value, and that slice has gotten more expensive to give back, not less.

17.9%median equity sold in a Series A round, Q1 2025Carta, Equity Financing Guide

$2.3Tsize of the global private credit market in 2026Global Market Insights, Private Credit Market Report

54%of small-bank financing applicants were fully approved in 2024, the highest of any lender typeFederal Reserve, 2024 Small Business Credit Survey

A Series A founder who raises equity at the 2025 median gives up 17.9% of the company, while a seed round costs a median 18.8%. That is before any later round dilutes the stake again. Debt, structured correctly, costs interest and covenants, not ownership.

Non-dilutive capital has also become genuinely larger and more available. The private credit market was estimated at USD 2.1 trillion in 2025 and is expected to reach USD 2.3 trillion in 2026, growing at a CAGR of 10.7% between 2026 and 2035. That growth is one reason non-bank lenders now compete hard for middle-market borrowers who used to have only banks and VCs to choose from.

What counts as "non-dilutive capital" and why it matters

Non-dilutive capital is any financing that doesn't require selling a share of the company: bank loans, SBA loans, revenue-based financing, asset-backed loans, and project finance all qualify. It matters because it preserves both ownership and control, including board seats and decision rights that equity investors typically negotiate for.

Dimension	Equity	Debt / non-dilutive capital
Ownership cost	~18% per round, median (Carta, 2025)	0%
Repayment obligation	None	Fixed or revenue-linked, always owed
Control / board rights	Investors often get a board seat or veto rights	Covenants, but founder keeps control
Tax treatment	Dividends not deductible	Interest typically tax-deductible
Speed to close (typical)	3 to 6 months	Days (RBF) to 2 to 4 months (bank/SBA)
Best suited to	Unproven, high-risk, pre-revenue bets	Predictable cash flow, contracts, hard assets
Credit profile built	No	Yes, improves access to future financing

Interest deductibility and ownership retention are the two most cited reasons businesses choose debt (Settle, 2024).

8 ways to raise debt without equity

These range from a $25K SBA microloan to a $50M+ project finance facility. Start with the one that matches your current revenue, assets, and raise size, not the one with the lowest headline rate.

SBA 7(a) Loan

10.00%-15.00% fixed/variable, checked Nov 2026

Max $5M · U.S. Small Business Administration · rates checked 2026-11-11

Best for: established U.S. small businesses needing $50K to $5M for working capital, equipment, or expansion with a track record of financials.

The SBA 7(a) is the most common government-backed small business loan. The maximum loan amount for a 7(a) loan is $5 million, and current rates for 7(a) loans range from 10% to 15% depending on size and term.

Government guarantee lowers lender risk, widening approval odds
Long terms: up to 25 years for real estate, 10 for working capital

Slow: 45 to 120 days to close
Personal guarantee usually required
Caps out well below $20M raises

"The SBA 7(a) is the easiest entry point for sub-$5M non-dilutive capital, but it's the wrong tool once a raise clears seven figures."

View at SBA.gov

Bank or Credit Union Term Loan

Varies by bank, checked 2026

Approval rate 54% (small banks), 44% (large banks) · Federal Reserve data · checked 2026-11-11

Best for: businesses with 2+ years of clean financials and an existing banking relationship.

Traditional bank debt is still the default for many owners, and small banks outperform the big ones on approval odds. Applicants that sought financing at small banks were more likely to be fully approved (54%) than those that sought financing from other lenders, according to the Fed's 2024 survey.

Lower rates than most alternative lenders if you qualify
Builds a long-term banking relationship

Large-bank approval rates lag small banks
Heavy documentation and collateral requirements
Firms denied financing increasingly cite already having too much debt (41% in 2024 versus 22% in 2021)

"Go to a small bank or credit union first; the Fed's own data shows they approve more often than large banks or online lenders."

See Fed Survey Data

Revenue-Based Financing (e.g. Founderpath)

1.1x-1.5x repayment cap, checked 2026

Funding in as little as 24 hours · checked 2026-11-11

Best for: SaaS or recurring-revenue companies that want cash in days without touching the cap table.

RBF repays as a cut of monthly revenue instead of a fixed schedule. Venture debt typically requires prior VC funding and often includes warrants (0.5-2% equity dilution), while revenue based financing is available to any company with recurring revenue, bootstrapped or VC-backed.

Zero warrants, zero dilution
Modern providers integrate with your billing platform for fast underwriting, often providing offers within 24 hours

Higher stated cost than bank debt
Only works if you have recurring revenue to underwrite against

"RBF is the fastest non-dilutive option for recurring-revenue businesses, but it is priced for speed, not for being cheap."

View Founderpath

Venture Debt (e.g. Flow Capital)

Rate + warrant coverage, checked 2026

Requires institutional equity backing · checked 2026-11-11

Best for: VC-backed companies extending runway between equity rounds without raising a full new round.

Venture debt is a fixed-principal term loan layered on top of an existing cap table. Venture debt is a term loan with a fixed principal, a defined interest rate, and a set maturity, sized against the broader business (for example, a multiple of ARR).

Lower stated cost than RBF
Extends runway without a full new priced round

Usually requires an active VC syndicate on the cap table
Warrants mean it is not fully dilution-free
Fixed payments regardless of revenue swings

"Venture debt is cheaper than RBF on paper, but the warrant coverage and VC-backing requirement mean it's not truly open to bootstrapped founders."

View Flow Capital

Invoice / Receivables Finance

Advance rate varies by lender, checked 2026

Collateral: unpaid invoices · checked 2026-11-11

Best for: B2B companies with long customer payment terms and steady invoicing volume.

This unlocks cash tied up in receivables instead of waiting on customers. Invoice finance allows businesses to borrow against unpaid invoices, with lenders advancing a percentage of the invoice value, and the balance paid once the invoice is settled.

Fast access to cash already earned
No long-term debt schedule, it unwinds as invoices get paid

Only works with B2B invoicing models
Can get expensive if customers pay slowly

"Invoice finance is the right call when the problem isn't a lack of revenue, it's a lack of cash timing."

Read the Guide

Asset and Equipment Finance

Secured against the asset, checked 2026

Collateral: machinery, vehicles, technology · checked 2026-11-11

Best for: construction, logistics, manufacturing, or any business buying hard assets.

Asset finance allows startups to borrow money to purchase business assets such as machinery, vehicles, or technology, with the asset itself often used as security. This spreads the cost of equipment over its useful life instead of paying cash upfront.

Collateral is the asset itself, easing underwriting
Preserves working capital for operations

Only funds the specific asset, not general growth capital
Asset depreciation risk sits with the borrower

"If you're financing a specific piece of equipment or a vehicle fleet, asset finance is almost always cheaper and faster than a general-purpose loan."

Read the Guide

Ezra (Debt Advisory for $20M+ Raises)

Advisory fee on close, inquire directly

1,000+ lenders in network · checked 2026-11-11

Best for: companies with revenue, signed contracts, or real assets raising $20M or more in debt or project finance.

Ezra is a debt advisory platform built for larger raises. Ezra helps companies raise $20M+ of debt and project finance, and its platform finds the right lenders while its deal team runs the raise. Rather than approaching lenders one at a time, Ezra pre-screens a pool and runs a structured process in parallel, which the company says moves deals to term sheets in weeks, not months.

Built specifically for $20M+ debt and project finance, not small-business micro-loans
Deal team runs the raise rather than leaving the founder to chase lenders solo
Access to a large, pre-screened lender pool

Not a fit for raises under roughly $5M to $10M
Requires revenue, contracts, or assets; pre-revenue startups should look elsewhere on this list
Advisory fee applies on close, unlike a direct bank application

"Ezra fits companies that have outgrown SBA and bank limits and need a structured, multi-lender process for a $20M+ raise."

Start a Raise

Project Finance Advisory (e.g. Financely Group)

Deal-dependent, inquire directly

Focus: large infrastructure and asset-backed deals · checked 2026-11-11

Best for: capital-intensive infrastructure, energy, or real-asset projects needing structured, non-recourse debt.

Project finance advisors structure debt against the cash flows of a specific project rather than the balance sheet of the parent company, which is standard practice for large infrastructure and energy deals.

Can isolate project risk from the parent company's balance sheet
Suited to large, asset-heavy deals

Longer structuring timelines than a straight term loan
Best suited to projects with predictable, contracted cash flows

"Project finance advisory is the right lane when the debt needs to sit against the project, not the company."

Visit Financely Group

How to run a debt raise without touching your cap table

Whether you're raising $200K or $20M, the process follows the same five phases. Skipping the preparation phase is the single biggest reason raises stall.

Size the raise against your real collateral. List contracted revenue, receivables, equipment, and any hard assets before approaching anyone, since this determines which instrument on this list you even qualify for.
Clean up financials and a data room. Lenders want 2+ years of statements, cap table, and contracts; a disorganized data room is the most common cause of a slow close.
Match to the right lender type, not the first one that replies. A bank, an RBF provider, and a project finance lender all underwrite differently; sending the wrong deal to the wrong lender wastes weeks.
Run multiple lenders in parallel, not sequentially. Competitive tension between term sheets is what gets better pricing and covenants, which is the core reason advisory-run processes beat solo outreach for larger raises.
Negotiate covenants before signing, not after. Review reporting requirements, prepayment penalties, and any warrant coverage line by line; this is where founders give away more than they realize.

Full comparison: 8 ways to raise debt without equity

Option	Best for	Typical size	Ease ★	Approx. cost	Time to close	Our calc: effective cost per $1M*
SBA 7(a) Loan	Established small businesses	$25K-$5M	★★★★	10%-15%	45-120 days	$100K-$150K/yr interest
Bank/Credit Union Term Loan	Banking-relationship businesses	$50K-$10M+	★★★	Bank-set, often below SBA	30-90 days	Lender-specific
Revenue-Based Financing	SaaS/recurring revenue	$50K-$10M	★★★★★	1.1x-1.5x cap	1-7 days	$100K-$500K on $1M advance
Venture Debt	VC-backed companies	$1M-$30M	★★	Rate + warrant	14-42 days	Rate + 0.5%-2% equity (warrants)
Invoice Finance	B2B with long payment terms	$10K-$5M	★★★★	Advance rate + fee	Days	Fee-based, revolves with invoices
Asset/Equipment Finance	Buying machinery/vehicles	$10K-$5M	★★★★	Secured, moderate	1-4 weeks	Asset-secured, lower risk premium
Ezra (Debt Advisory)	$20M+ debt/project finance	$20M+	★★★★	Advisory fee + lender rate	Weeks to term sheet	Advisory fee amortized over larger raise
Project Finance Advisory	Infrastructure/energy projects	$10M-$100M+	★★	Deal-dependent	Months (structuring-heavy)	Deal-specific, non-recourse structure

*Our calculation: effective cost estimates the all-in cost of borrowing $1M under each structure's typical published terms, checked 2026-11-11. Lender-specific figures vary by underwriting.

FAQ

What is the easiest way to raise debt without equity?

For most growth-stage companies, the easiest path is a senior secured term loan or asset-backed facility against revenue, contracts, or hard assets, sourced through a debt advisor or lender-matching platform rather than approaching banks one by one. It is easier than equity because you keep 100% ownership, and easier than a solo bank search because an advisor pre-screens which lenders actually fit your deal.

Can I raise $20 million in debt without giving up equity?

Yes, if you have revenue, signed contracts, or real assets to lend against. Raises above $20M typically use project finance, asset-backed loans, or senior credit facilities rather than SBA or bank products, which cap out lower. These deals usually route through a debt advisory team that runs a structured process with multiple lenders at once.

Is debt financing always better than equity for growth?

Not always. Debt preserves ownership and is often tax-advantaged, but it requires repayment regardless of performance and can add covenants. Equity has no repayment obligation but costs you a permanent share of future value. Most growth companies use debt first for anything with predictable cash flow or collateral, and save equity for unproven, high-risk bets.

What credit score or revenue do I need to qualify for non-dilutive capital?

It depends on the instrument. SBA and bank term loans typically want 650+ personal credit and 2+ years of financials. Revenue-based financing and venture debt care more about recurring revenue and growth trajectory than personal credit. Asset-backed and project finance care most about the collateral or contracted cash flows, not the founder's credit score.

How long does it take to raise debt financing?

A bank term loan or SBA loan can take 45 to 120 days to close. Revenue-based financing can fund in days once you connect your accounting and bank data. A structured $20M+ debt or project finance raise run by an advisory team typically moves from mandate to term sheet in weeks rather than months, because multiple lenders are run in parallel instead of sequentially.

What is the difference between venture debt and revenue-based financing?

Venture debt is a fixed-principal term loan typically reserved for companies with institutional VC backing, and it often includes warrants that create minor dilution. Revenue-based financing repays as a percentage of monthly revenue until a cap is hit, requires no VC backing, and carries zero equity component, though it usually costs more on a stated basis.

Do I need a perfect credit history to get non-dilutive growth capital?

No. Lenders weigh collateral, contracted revenue, and cash flow more heavily than a flawless credit file, especially for asset-backed and project finance deals. Businesses with trading history, signed customer contracts, or hard assets to pledge can usually qualify even with an imperfect credit record.

Should I use a debt advisor or go directly to banks and lenders myself?

For raises under roughly $1M, going direct to a bank, SBA lender, or online platform is usually faster. For raises above $5M to $20M+, an advisory firm that runs a structured process across a pool of lenders typically gets better terms and a faster close, because they know which lenders are actively deploying in your sector and size band.

What can I use as collateral if I don't own real estate?

Signed customer contracts, recurring revenue, accounts receivable, equipment, inventory, or the project assets themselves (solar panels, data center hardware, vehicles) can all serve as collateral. Asset-backed lenders and project finance lenders are built specifically around these non-real-estate forms of security.