I'd expect the initial reaction would be "this is the way a funder collects/protects the unsecured funds in worst-case scenario and if the merchant doesn't want to sign it, it implies he has intentions of not paying back" Which I understand.

Client is doing approx $3m annual rev, 700+ FICO, 30k ADB, and just seeking a 150k-250k MCA, unsecured LOC or short TL for projects but since merchant has a lot of personal assets doesn't want to sign a PG and potentially risk them.

I am looking for reputable funders that are known in the industry and have been around for a few years at least. Bluevine, Ondeck and I believe IOU all require it.

Would love to hear from the forum. Thanks!