9
Best Unsecured Business Loans
AdvancePoint Capital
Loan amounts
$10,000 – $2 million
APR range
Lower than the national average
Minimum Credit Score
620
$10,000 – $2 million
Lower than the national average
620
Eligibility
- Monthly Gross Sales: $18,000+
- Time in Business: 1 year
- Fico: 620+
Funding time
Same Day Funding Available, fast and easy application process with no hard credit pull. Free quote to see how much you qualify for.
Compare the Best Unsecured Business Loans
| COMPANY | FORBES ADVISOR RATING | LOAN AMOUNTS | APR | LEARN MORE |
|---|---|---|---|---|
 
|
$5,000 to $400,000
|
6% to 56.6% or higher
|
Via Ondeck's Website
| |
|
$1,000 to $250,000
|
Simple interest starts at 7.8%
|
On Bluevine's Website
| |
|
|
$1,000 to $250,000
|
4.66% to 25%
|
On Fundbox's Website
| |
|
|
$10,000 to $1 million
|
Not disclosed
|
Via Forbes Advisor
| |
|
|
Up to $1 million
|
Varies by qualifications
|
Via Forbes Advisor
| |
|
|
$5,000 to $1 million
|
Not disclosed
|
Via Forbes Advisor
|
Best Unsecured Business Loans: A Closer Look
BEST FOR SHORT-TERM LOANS
OnDeck
APR range
6% to 56.6% or higher
varies by loan
Loan amounts
$5,000 to $400,000
varies by loan
Minimum Credit Score
625
6% to 56.6% or higher
varies by loan
$5,000 to $400,000
varies by loan
625
We picked OnDeck because it offers top-notch loans with short terms. You can apply for a line of credit with a 12-month repayment term that resets after each withdrawal with a credit limit of $6,000 up to $100,000. Or you can apply for a $5,000 to $400,000 term loan with a repayment schedule of up to 24 months.
- Customizable weekly or monthly repayment terms
- Reports payment history to business credit bureaus
- No collateral required
- Must have an active business checking account
- Businesses located in North Dakota are not eligible
- High average interest rate of 56.6% APR
Lender Details
Eligibility
- Minimum credit score: 625
- Time in business: one year
- Minimum Annual revenue: $100,000
Turnaround time
You can apply and receive a decision from OnDeck on the same day.
BEST FOR FLEXIBLE LINES OF CREDIT
Bluevine
Loan amounts
$1,000 to $250,000
APR range
Simple interest starts at 7.8%
Minimum Credit Score
625
$1,000 to $250,000
Simple interest starts at 7.8%
625
< style=”font-weight: 400;”>We picked </>< style=”font-weight: 400;”>Bluevine</>< style=”font-weight: 400;”> for its flexible line of credit which ranges from $1,000 to $250,000 and offers a weekly or monthly repayment structure. Customers who repay weekly make payments each week over 26 weeks, while customers who repay monthly make payments each month over one year. </>
- No prepayment penalties or maintenance fees
- Approval decision in as little as five minutes
- Instant access to approved draws with Bluevine Business Checking account
- No mobile app for its line of credit
- Monthly revenue requirement
- Not available to businesses in Nevada, North Dakota, and South Dakota.
Eligibility
Eligibility varies on the specific program a business owner chooses.
Weekly plan
- Minimum credit score: 625
- Time in business: Less than one year
- Minimum revenue: $40,000 monthly or $480,000 annually
- Business type: Corporation or LLC
- Bankruptcies: No past bankruptcies
Monthly plan
- Minimum credit score: 700
- Time in business: Three years
- Minimum revenue: $80,000 per month or $960,000 annually
- Business type: Corporation or LLC
Turnaround time
After you submit your application, you can receive a decision in as quickly as five minutes and instant funding with a Bluevine business checking account. Borrowers who don’t have a Bluevine business checking account can receive funds within 24 hours.
Consumer Sentiment Index
- Overall rating: 2.4/5 — Neutral
Based on 6,300 customer insights and reviews for the entire category.
Bluevine’s borrowers reported quick application processes and funding times, but many were also disappointed with their experiences. Some customers noted that the customer service was unresponsive and that there were technical issues during the application process.
Disclaimer: The Consumer Sentiment Index from Forbes Advisor uses a proprietary weighting system designed by our subject matter experts. It evaluates thousands of consumer insights and reviews from leading online forums to determine customer satisfaction at scale.
BEST FOR FAST CLOSING
Fundbox
Loan amounts
$1,000 to $250,000
APR range
4.66% to 25%
Minimum Credit Score
600
$1,000 to $250,000
4.66% to 25%
600
We picked Fundbox because it offers business loan decisions within three minutes and next-day funding, making it a great choice for business owners in a hurry. Through its AI-powered business lending platform that speeds up the application, you can apply for revolving business lines of credit up to up to $250,000 with repayment terms of 12 or 24 weeks.
- Low minimum credit score, time-in-business and revenue requirement
- Offers a free financial tool to help manage historical and predicted cashflow
- Available to businesses based in all 50 states and 5 major U.S. territories
- High Maximum APR of 25%
- May need to sign a personal guarantee to access your funds
- Late payment and non-sufficient funds fees may apply
Loan Details
- Minimum credit score: 600
- Minimum annual revenue: $30,000
- Minimum time in business: 3 months
Funding Speed
Funds may arrive within two business days of requesting a credit line draw.
BEST FOR HEALTHCARE PROFESSIONALS
TD Bank
Loan amounts
$10,000 to $1 million
up to $5 million for small business loans
APR range
Not disclosed
Minimum Credit Score
Not disclosed
$10,000 to $1 million
up to $5 million for small business loans
Not disclosed
Not disclosed
We picked TD Bank because they stand out with their offers for healthcare professionals. TD Bank offers unique financing options of up to $12 million for dentists, veterinarians, physicians and eye care professionals. Plus, healthcare professionals have access to business lending solutions such as 100% practice financing plus working capital, partnership buy-ins and buy-outs, equipment purchases, and practice mergers and acquisitions.
- Ability to apply in person
- Flexible loan amounts
- Clear application requirements
- Must apply in person for loans over $250,000
- Typically requires collateral
- Only available in 16 states
Eligibility
- Minimum credit score: 660
- Time in business: One year
- Minimum annual revenue: Does not disclose
Turnaround time
Although TD Bank offers same-day approval for its business loans and lines of credit, it may take up to two business days to receive your funds. SBA loans, on the other hand, may take several weeks to fund.
BEST FOR FUNDING OPTIONS
Biz2Credit
Loan amounts
Up to $1 million
Varies depending on qualifications
APR range
Varies by qualifications
Minimum Credit Score
650*
*See website for details
*See Website For Details
Up to $1 million
Varies depending on qualifications
Varies by qualifications
650*
*See website for details
We picked Biz2Credit for its selection of funding options, including revenue-based financing and term loans. Biz2Credit’s revenue-based financing ranges from $25,000 to $2 million or more. Biz2Credit’s term loans range from $25,000 to $500,000 and are repaid through weekly, bimonthly or monthly payments over 12 to 36 months.
- Revenue-based financing has flexible qualification requirements
- Can prequalify for submitting an application
- Offers term loans with weekly or biweekly payments
- Does not disclose financing costs
- Does not disclose turnaround time
- High annual revenue requirement
Eligibility
Eligibility varies based on the financing option you choose.
Term loan
- Minimum credit score: 650
- Time in business: 18 months
- Minimum revenue: $250,000 per year
Revenue-based financing
- Minimum credit score: 575
- Time in business: 6 months
- Minimum revenue: $10,000 per year
Turnaround time
Biz2Credit does not disclose the turnaround time for its financing options.
BEST FOR PRODUCT AVAILABILITY
Rapid Finance
Loan amounts
$5,000 to $1 million
APR range
Not disclosed
Minimum Credit Score
550
$5,000 to $1 million
Not disclosed
550
We picked Rapid Finance because it offers business owners a range of unsecured loans. These include term loans, lines of credit, MCAs and invoice factoring. Rapid Finance’s unsecured loans range from $5,000 to $1 million with terms from three to 60 months, depending on the specific type of loan. Borrowers are required to meet daily or weekly repayment schedules.
- Terms of 6 months
- No credit score minimum
- Same-day funding
- Origination fee
- High minimum revenue requirement
Lending Details
Eligibility
- Minimum credit score: No minimum credit score
- Minimum annual revenue: $200,000
- Required time in business: 6 months
Funding Speed
Funds may be available within hours of approval.
Most Popular is calculated from the number of times each affiliate product was selected by Forbes Advisor users over a six month time period.
Tips for Comparing Unsecured Business Loans
It’s crucial to find the best source of financing for a business’ unique needs. To do so, evaluate why the business needs a loan, how much it needs to borrow and the applicant’s creditworthiness. Then, consider these factors when comparing unsecured business loans:
- Eligibility requirements. Lenders impose a range of eligibility requirements when vetting potential borrowers but generally require applicants to have a personal credit score of at least 680. Financial institutions also look at the business’ financial records to evaluate the prospective borrower’s ability to repay the loan.
- Loan types. There also are a number of business loan types—some of which are better suited for more specific financing needs. Evaluate whether you need money in a lump sum or prefer to access it on an as-needed basis. Likewise, consider whether a nontraditional financing method—like invoice factoring—might be a better fit than a term loan.
- Available amounts. In general, unsecured business loan amounts range from as little as $1,000 to $500,000. Choose a lender with borrowing limits that match your business’ borrowing needs so you don’t have to borrow more or less than necessary.
- Loan terms. A loan’s repayment term impacts the size of monthly payments and, therefore, whether a business can afford the financing. Be sure to select a lender that offers loan terms in line with your business’ budget and overall financial plans.
- Cost. The overall cost of a business loan can include interest as well as origination fees, late fees and prepayment penalties. Compare how much you’re likely to pay up front and over the life of each loan you consider.
- Customer support and reputation. Visit each lender’s website to learn about customer support tools and availability. Also, read online reviews to see what experiences real borrowers have had with customer support representatives and the borrowing process as a whole. Talk to other members of your community or industry to see if anyone has had a positive—or negative—experience with the lender before committing to a loan.
What Is an Unsecured Business Loan?
Unsecured business loans are a type of business financing that does not require the borrower to provide collateral in exchange for a loan. Just as there are several types of business loans, unsecured business loans come in many forms, each with its own characteristics and use. Common unsecured business loans include:
Term loans
Business lines of credit
Merchant cash advances
Invoice factoring
Pros and Cons of Unsecured Business Loans
As with other forms of business financing, unsecured business loans come with advantages and disadvantages—though these may vary by borrower and lender.
Pros of Unsecured Business Loans
- Collateral not required. Unsecured business loans don’t require borrowers to pledge any valuable collateral in exchange for funds. This makes unsecured loans an excellent financing option for newer businesses that don’t yet own real estate, equipment or other major assets.
- No risk of losing collateral. Because unsecured business loans don’t require borrowers to pledge collateral, there is a lower risk of a company losing its assets if it defaults on a loan. That said, lenders can still file a lawsuit to recover the unpaid balance, garnish revenue from the business or seize valuable assets like equipment and real estate.
- Faster application and approval. Due to the lack of collateral, lenders do not require an appraisal as part of the unsecured loan application process. This can translate into faster application and approval processes than available for secured options.
Cons of Unsecured Business Loans
- Smaller loan amounts. Unsecured loans pose more risk to lenders than secured alternatives. For that reason, lenders often offer lower borrowing limits on their unsecured financing options.
- Higher interest rates. Lenders can’t repossess collateral in the case of default, so unsecured business loans typically come with higher interest rates than their secured counterparts. In general, rates on unsecured business loans range anywhere from around 5% to 80% or higher.
- May be more difficult to qualify for. Because of the risk posed by unsecured loans, lenders may impose more demanding eligibility requirements than secured options. This means that it can be difficult to qualify for an unsecured loan if a business has bad credit, no credit or limited annual revenue.
Where To Get Unsecured Business Loans
Unsecured business loans may be available through traditional banks and credit unions. However, this type of business financing is more often offered through online lenders and alternative lenders. This may include financial technology companies—fintechs—that base lending decisions on a wider range of qualification requirements.
When To Choose an Unsecured or Secured Business Loan
If you’re trying to get a business loan, you may want to consider an unsecured business loan if you don’t own any valuable assets to pledge as collateral or you want faster funding times than available with secured options. That said, unsecured loans often come with higher annual percentage rates (APRs) and less flexible terms, so opt for a secured loan if you qualify for competitive interest rates and have the means to secure the loan.
How To Get an Unsecured Business Loan
Getting an unsecured business loan can be a straightforward process with the right planning and approach. Here’s a step-by-step guide to navigating the application process:
- Evaluate your business needs. Understand why you need the loan and how much you need. This will help you determine the correct type of loan and how it fits into your business plan.
- Check your credit score. Lenders often assess your creditworthiness based on your credit score. If your score is low, consider improving your score before applying for a loan.
- Prepare your business plan. A comprehensive business plan gives lenders a clear picture of your business and its growth potential. Ensure it includes information about your market, competition and financial forecasts.
- Compile financial statements. Lenders will want to see your balance sheet, cash flow statements and profit and loss statements to evaluate your business’s financial health.
- Shop around for lenders. Different lenders offer different terms and rates. Compare multiple lenders and prequalify, if possible, to find the best deal for your business.
- Prepare and submit your application. Once you narrow down your lender choices, prepare your loan application. Include all necessary documents and ensure all information is accurate to avoid delays.
- Follow up. After submitting your application, follow up with the lender to be sure they received it and there are no issues.
Alternatives to Unsecured Business Loans
If an unsecured business loan doesn’t seem like the right fit for you, consider one of these alternatives.
SBA Loans
The U.S. Small Business Administration (SBA) offers a variety of government-guaranteed loans to small businesses through traditional lenders, such as banks and credit unions.
- 7(a) Loan Program. SBA 7(a) loans are the most common type of financing the agency offers. The maximum loan amount is $5 million and terms range from 10 to 25 years.
- CDC/504 Loan Program. This program offers fixed-rate financing for major assets like real estate, equipment or machinery. These loans are available through Certified Development Companies (CDCs), nonprofit organizations that work with the SBA and traditional lenders to fund small businesses.
Small Business Grants
Unlike loans, small business grants don’t have to be repaid. Instead of lending money, grantors offer resources, tax credits or other incentives to help small businesses succeed. However, the application process is often highly competitive and may require significant time and effort.
Business Credit Cards
Business credit cards function much like personal credit cards; however, you use the card to pay for business expenses. While interest rates on business cards may be higher than business loan rates, they usually have more flexible qualification requirements.
If you don’t need to borrow a large amount of money, a business credit card may be a better fit. Some providers even offer an introductory 0% annual percentage rate (APR) for highly qualified applicants. If you repay your balance during the intro period, this is essentially an interest-free loan.
Crowdfunding
If you want to avoid borrowing money altogether, consider crowdfunding. By using sites like Kickstarter and Indiegogo, you can raise money for your business. These sites let you set a funding goal and create reward tiers for people who back your project. However, if you don’t reach your goal, you usually get nothing.
Find the Best Small Business Loans
Methodology
We reviewed 18 popular lenders based on 16 data points in the categories of loan details, loan costs, eligibility and accessibility, customer experience and the application process. We chose the nine best lenders based on the weighting assigned to each category:
- Loan cost. 35%
- Loan details. 20%
- Customer experience. 20%
- Eligibility and accessibility. 10%
- Application process. 10%
Within each major category, we also considered several characteristics, including available loan amounts, repayment terms and applicable fees. We also looked at minimum credit score and time in business requirements and the geographic availability of the lender. Finally, we evaluated each provider’s customer support tools, borrower perks and features that simplify the borrowing process—like online applications, prequalification options and mobile apps.
Where appropriate, we awarded partial points depending on how well a lender met each criterion.
To learn more about how Forbes Advisor rates lenders, and our editorial process, check out our Loans Rating & Review Methodology.
Frequently Asked Questions (FAQs)
How do you get an unsecured business loan?
You can get an unsecured business loan through traditional financial institutions like banks and credit unions, or via online lenders and other fintech companies. If your business already works with a bank or credit union, inquire about its business loan offerings. Otherwise, there are online lenders who can help you qualify for financing quickly.
At the same time, research the best small business loans and compare available rates, terms, loan amounts and other relevant information. If you’re a member of your local chamber of commerce, other local businesses may be able to provide insight into the comparative advantages of their offerings—as can other members of your industry.
How hard is it to get an unsecured business loan?
With unsecured business loans, as with many other things, you can get funding quickly, cheaply or easily, but not always all three. If you need funding fast, there are providers who can help you. If you want more inexpensive financing, with a lower interest rate and other fees, that may also be achievable through a bank or local credit union but will typically take longer.
Can you get an unsecured business loan with bad credit?
Getting an unsecured business loan with bad credit is possible, but may be more difficult. If your credit isn’t good or you’re still building your business credit, you may still be able to get unsecured funding in the form of invoice financing or an MCA.
What can you do if you are denied an unsecured business loan?
If you’re denied an unsecured business loan, there are still ways you can get the financing you need. If you don’t need the funds immediately, improve your credit score before reapplying. For instance, paying down existing debt and making consistent on-time payments can boost your score over time.
However, if you need funds immediately, look toward other viable alternatives. For example, business credit cards are a handy source of financing that typically have more flexible qualification requirements compared to business loans. If you choose to go this route, note that business credit card limits may only extend up to $50,000, depending on your creditworthiness.
What documents are needed to apply for an unsecured business loan?
To apply for a business loan, you may need the following documents:
- Personal and business tax returns
- Business licenses
- Articles of incorporation
- Personal and business bank statements
- Profit and loss statements
- Financial statements
- Business plan
- Building lease
Contact the lender directly and ask them what specific documents they require. You may need to ask a bookkeeper or accountant to prepare documents for you, so give them plenty of notice.
What happens if you default on an unsecured business loan?
If you default on an unsecured business loan, the lender could take legal action to recover the debt. This could result in garnishment of business revenues, seizure of assets or a negative impact on the business’s credit score. There may also be legal fees involved, thereby increasing the debt amount.