The answer to this question depends largely on the loan applicant's credit rating. If it is very good or at least above the average, you shouldn't worry about the outcome of the application process, as all big Canadian banks and chartered banks will consider your application.

You can also obtain a small business loan without offering collateral, and some lenders in Canada will grant you an unsecured personal loan, even if your credit rating is far from perfect.

Once you have decided what you need a business loan for, and that you definitely do not want to put in anything as collateral, be it part of your business or some real property on your name, here is what you should do in order to try to obtain a small business loan with no collateral.

As with personal unsecured loans, the approval of your application for an unsecured business loan largely depends on the corporate credit score of your company. So, before you give it a try, make sure that it is at least a few notches above the average. It is a good idea to obtain a copy of your company's credit report and carefully check it for negative marks, errors, and inconsistencies, which have to be corrected.

Next, you should shop around for lenders that have specialized in giving out unsecured loans. One way to find such a lender is to ask Canada's Business Development Centre for information and assistance.

You have probably heard of peer-to-peer traffic of information, allowing people to share the movies and music they have on their computers with individuals from across the globe. Similar to that, you will find people-to-people lending, whereby wealthy individuals are willing to lend considerable sums in the form of unsecured loans. You may explore this option as well.

If you need a personal loan and don't want to offer a collateral, you have several options. One option is to turn to a wealthy family member or friend and ask for a loan. Second, you can apply for a credit card, but it is unwise to use it for major purchases as the interest may be quite high.

As to the unsecured personal loans available in Canada, there are many lenders working with customers with poor credit rating. You should keep two points in mind, however. You will have to pay a large amount in interest and fees because the lender takes more risk when dealing with persons with a compromised credit score. Second, these lenders will probably agree to lend you a small sum first (not more than $1,000 or $2,000) and then go up to about $5,000 once you pay off your loan. You have to pay the first loan on time as to qualify for a larger amount. Needless to say, you must make sure that the unsecured lender you have chosen is legitimate, as the internet is full of loan sharks guised as providers of unsecured personal loans.

Canadian financial blog, offering thoughts on personal finance and Canadian economy.