8 Best Unsecured Business Loans

Get Started With BusinessLoans.com

Pros

Multiple types of financing available
No minimum FICO to apply
Receive multiple offers with no hard credit check
High borrowing amounts

Cons

Website isn’t very informative
Some lenders require blanket lien and/or personal guarantee

Why We Chose BusinessLoans.com For Unsecured Small Business Loans

BusinessLoans.com is a one-stop shop for business financing. BusinessLoans.com is a marketplace with multiple unsecured business financing options, including short-term loans, lines of credit, merchant cash advances, and invoice financing. Simply fill out the quick application, and if you qualify, you’ll start receiving offers from partnered lenders.

Best of all, there is no minimum credit score to apply to BusinessLoans.com, so you can potentially get unsecured business loan offers if you have bad credit as well as no collateral.

BusinessLoans.com Eligibility Requirements

BusinessLoans.com prefers that applicants have at least 6 months in business with business revenues of at least $100,000 per year.

BusinessLoans.com Rates & Fees

BusinessLoans.com rates and fees vary by lender.

Revenued: Best Unsecured Business Loans With No Personal Guarantee

Revenued Business Card

Get Started With Revenued Business Card

Annual Fee

Minimum Recommended Credit

N/A

Rewards Rate

3% cash back on eligible purchases

Pros

No personal guarantee
$500 welcome offer & 3% cash back on all purchases
Bad credit-friendly
No hard credit pull

Cons

Cannot carry a balance
Doesn’t build credit

Why We Chose Revenued For Unsecured Small Business Loans

Revenued offers a business credit card for bad credit, as well as the option to take out cash advances up to your credit card limit. Revenued is one of the few business financing options that does not require a personal guarantee so you won’t be personally on the hook to repay your loan if your business folds.

Revenued doesn’t even perform a hard credit pull during the approval process—only a soft check to ensure that you don’t have any previous merchant cash advance defaults.

Revenued Eligibility Requirements

Revenued has no minimum credit score to apply, and in fact, Revenued doesn’t even take credit score into consideration. Your business does need to be at least 6 months old and bring in at least $180,000/year—your credit line is based on your revenues so it’s not a suitable option for brand-new startups.

Revenued Rates & Fees

Revenued doesn’t charge any credit card fees (no interest, no annual fee) but you do need to pay off your balance every month. As for cash advances, factor rates range from 1.1 – 1.5.

Upstart: Best Unsecured Startup Business Loans

Upstart

Pros

No blanket lien or personal guarantee
Startup-friendly
Suitable for poor credit/no credit
Long repayment terms

Cons

Low borrowing amounts
Origination fee

Why We Chose Upstart For Unsecured Small Business Loans

Upstart offers personal loans that can be used for business. These are medium-term installment loans ranging from $1,000–$50,000 that you can take as long as 5 years to pay off. Upstart loans do not require any collateral, blanket lien, or even a personal guarantee.

Upstart is primarily geared toward consumers and not businesses, but their loans are appropriate for startup businesses without significant business qualifications or assets.

Upstart Eligibility Requirements

The main qualifications you need to be approved for an Upstart loan are:

A FICO score of 300
No delinquent accounts
No recent bankruptcies
Fewer than 6 inquiries on your credit report in the last 6 months

Upstart Rates & Fees

Personal loans through Upstart offer a fixed interest rate ranging between 6.7% – 35.99% (based on 5-year rates offered in December 2022). According to Upstart, its average 5-year loan has an APR of 26.48%.

Get Started With Upstart

OnDeck: Best Short Term Unsecured Business Loans

OnDeck

Pros

Helps build credit by reporting payments to credit bureaus
Same-day funding available
Multiple unsecured financing options
Lower costs for repeat customers

Cons

Blanket lien & personal guarantee required
Origination fee

Why We Chose OnDeck For Unsecured Small Business Loans

OnDeck is a leading provider of unsecured short-term loans for small businesses. OnDeck is a favored lender in this space due to their convenient same-day financing as well as their transparent fees, and easy-to-meet borrower qualifications.

In addition to short-term business loans up to $250,000, OnDeck also offers a business line of credit up to $100,000.

OnDeck Eligibility Requirements

OnDeck requires 1 year in business, $100,000 in annual business revenue, and a FICO of 625.

OnDeck Rates & Fees

According to OnDeck, the average APR for its short-term loans is 62.1% and the average rate for lines of credit is 48.9% (based on loans originated in the half-year ending March 31, 2022).

Get Started With OnDeck

Lendio: Best Unsecured Business Loans Marketplace

Lendio

Pros

Multiple financing products available
Some lenders in network accept bad credit
No-collateral SBA microloans available
Good customer service

Cons

Some lenders require blanket lien and/or personal guarantee

Why We Chose Lendio For Unsecured Small Business Loans

Similar to BusinessLoans.com, Lendio is an online business marketplace. Lendio offers a vast range of unsecured small business loan options, even including SBA loans (SBA microloans, in particular, can be unsecured). In total, Lendio works with over 75 small business lenders, including some of the other lenders on this list. You can essentially apply to all of these lenders with a single 15-minute application.

Lendio does have minimum credit score requirements depending on which type of financing you want, but some unsecured loan options, like invoice financing, have low credit score requirements. If you’re not sure what financing you might qualify for, Lendio provides lots of useful information on its website.

Lendio Eligibility Requirements

Lendio eligibility requirements vary by lender. See Lendio’s website for more information on eligibility, sorted by financing type.

Lendio Rates & Fees

Lendio rates and fees vary by lender. Again, you can refer to Lendio’s website for more information on rates sorted by financing type.

Get Started With Lendio

Bluevine: Best For Fast Unsecured Business Loans

Bluevine

Get Started With Bluevine

Pros

Approval decisions as soon as 5 minutes
Same-day financing available
No monthly fee
Monthly repayments (for high-revenue businesses)

Cons

Blanket lien & personal guarantee required
High business revenue requirement

Why We Chose Bluevine For Unsecured Small Business Loans

Bluevine is a business line of credit provider, offering unsecured LOCs up to $250,000. If your business struggles with cash-flow problems but can’t qualify for a bank line of credit, Bluevine is worth checking out. Bluevine lines of credit are super fast; you can get approved within minutes and potentially receive your funds the same day.

As you repay what you have borrowed (terms have a length of 6 or 12 months), your line will be replenished, making this lender suitable for repeat loans.

Bluevine Eligibility Requirements

A Bluevine line of credit requires a 625 FICO, 2 years in business, and at least $40,000/month in business revenue. Providing a link to your business bank account makes it faster for Bluevine to confirm your credentials.

Bluevine Rates & Fees

Bluevine interest rates start at 6.2%, but most applicants won’t receive a rate this low. Repayments are weekly or monthly depending on whether you qualify for the 6-month LOC or the 12-month LOC (12-month LOC have the option of monthly repayments).

Fundbox: Best For Small Unsecured Business Loans

Fundbox

Pros

No personal guarantee on most draws under $50K
Easy application & cash draws with Fundbox mobile app
No draw fees
No prepayment penalty

Cons

Doesn’t report positive payment activity to credit bureaus
Requires blanket lien

Why We Chose Fundbox For Unsecured Small Business Loans

Fundbox is a user-friendly business lender offering an unsecured line of credit for small businesses, including those new to business lending. Fundbox is ideal for small, quick cash infusions. Though Fundbox’s maximum line of credit is $150,000, Fundbox says it does not require a personal guarantee on most smaller draws (up to $50K).

Each draw from your Fundbox LOC is structured like a short-term loan which you will have to repay in 12 or 24 weekly payments. Yes, this is quick, but fees are very transparent, and you’ll know exactly how much each payment will be before you sign for the loan.

Fundbox Eligibility Requirements

Fundbox requires annual business revenues of $100,000, plus a FICO of 600, and ideally, 6 months in business.

Fundbox Rates & Fees

Fundbox charges an average of 4.66% for 12-week lines of credit and 8.99% on 24-week lines of credit. However, the company says, “Fees may vary for each customer and over time.”

Get Started With Fundbox

National Funding: Best For Large Unsecured Business Loans

National Funding

Get Started With National Funding

Pros

Financing up to $400K
Funding within 24 hours
Multiple types of financing to choose from
Discounts for repaying early

Cons

Requires personal guarantee & origination fee
Daily repayments

Why We Chose National Funding For Unsecured Small Business Loans

National Funding is an online business lender whose offerings include multiple types of unsecured financing, including larger business loans up to $400,000 and equipment financing up to $150,000. National Funding is fast, easy, and suitable for businesses in a number of industries.

National Funding fees can be on the higher side, but these loans are relatively easy to qualify for, and there are not too many business lenders offering an unsecured loan this large and this fast—within 24 hours.

National Funding Eligibility Requirements

National Funding requires 6 months in business, a credit score of 600, and annual revenues of at least $250,000.

National Funding Rates & Fees

National Funding charges a one-time fee which typically falls between 17%-36% of your loan. Additionally, you’ll pay an origination fee ranging from 1-3%.

How To Choose A Lender For An Unsecured Business Loan

Once you have a list of loans you are interested in and eligible for, you can prequalify for loans and compare initial offers. With these offers, you can narrow down the list further by comparing the important attributes of each loan. Some crucial things to consider include:

Typical time-to-funding (how soon you’ll get the money after applying)
The loan’s APR or factor rate (total cost you’ll pay for the loan)
How long you have to repay the loan
How much each loan payment will be
Whether there is an origination fee (an amount that is taken from the loan total upfront)
Whether there is a prepayment penalty (on short-term loans)
Any other fees and their amounts
The lender’s overall reputation

If you have a few basic pieces of information about a loan you’re considering (total loan amount, repayment frequency, interest rate, etc.), you can use one of our small business loan calculators to determine both how much your payments will be and the total cost of your loan.

It’s important to understand all the pertinent information about a loan’s terms before you accept an offer. If you can’t find much specific information about a business loan, even after you prequalify, this is a bad sign.

To save time comparing lenders, you might want to use a loan aggregation service like Lendio, which lets you prequalify for and compare several loan offers at once.

What You Need To Apply For An Unsecured Business Loan

Borrower requirements for business loans inevitably vary from one lender to the next. However, most business lenders will want to see that you have a few key things:

A legal business entity (e.g., an LLC)
Business bank account
Business tax ID number
Business phone number and website
Vendors that report to credit bureaus

Additionally, you’ll need to meet the requirements for credit score, time-in-business, annual revenue, and other requirements as outlined for each lender above.

As far as which documents you need to apply for a business loan, you’ll again want to check details about the specific loan for which you’re applying. Odds are good that you will need to have at least the following:

Business license
Business lease
Business bank statements for the past 3 months (or longer)
Business financial statements, including Profit & Loss and Income Statement
Personal income tax returns for the past 3 years
Outline of business expenses
A business plan that explains how you will use the loan

If you’re applying for a personal loan, you will not need to show most of these things. Still, it’s a good idea to keep business and personal finances as separate as possible.

Before applying for a business loan, you should also check your credit report, make an effort to improve your business credit score (or your improve your personal credit score if you’re applying for a personal loan), and be aware of any judgments or liens on your business.

Final Thoughts On Unsecured Business Loans

Unsecured loans are not without risk. Lenders try to mitigate this risk by tacking on higher interest rates and withdrawing loan repayments directly from your bank account, often on a daily basis. Please also be forewarned that even if a lender doesn’t require a blanket lien or personal guarantee, they can still sue you if you don’t pay and seize your assets that way.

So to sum up, you shouldn’t choose an unsecured loan because you think it will protect your assets; rather, this loan type is more appropriate for businesses that don’t have much to offer up as collateral and, therefore, can’t qualify for a secured loan. However, for many newer and less-creditworthy businesses that are shut out of the traditional lending market, unsecured financing can be a godsend.

Have a question about any of these unsecured loan options? Contact us in the comments, and we’ll do our best to get back to you with an answer.

Unsecured Small Business Loans: FAQs

Who qualifies for an unsecured business loan?

Most businesses can qualify for an unsecured business loan. New businesses and businesses with bad credit can qualify unsecured financing mostly in the form of personal loans and some short-term loans, while established businesses with at least 6–12 months in business and good credit have more unsecured loan options, including lines of credit and some medium-term loans.

How hard is it to get an unsecured business loan?

Unsecured loans have relatively relaxed borrower requirements and a quick, easy online application. Typically you need just 6 months in business, a credit score of 600 or above, and steady business income sufficient to repay the loan.

If you meet these minimum criteria and have a few other essentials, like a business bank account and a business plan, it should be easy to get an unsecured business loan online.

Can SBA loans be unsecured?

Very small SBA loans under $25,000 can be unsecured. However, collateral requirements can vary from one SBA lender to the next. Another thing to know is that all SBA loans, even unsecured SBA loans, require a personal guarantee.

Are small business loans secured or unsecured?

Small business loans can be secured or unsecured. Typically, small business loans from a bank are secured with collateral, while small business loans offered by alternative online lenders tend to be unsecured.

Unsecured small business loans may still require a personal guarantee and/or blanket lien on your business assets.

In Summary: 8 Top Unsecured Business Loans

BusinessLoans.com:
- Offers: Term loans, lines of credit, & more
- Revenue Requirements: $100K/year
- Minimum Credit Score: N/A
Revenued Business Card:
- Offers: Business credit card & merchant cash advances
- Revenue Requirements: $15K/month ($180K/year)
- Minimum Credit Score: N/A
Upstart:
- Offers: Personal loans
- Revenue Requirements: N/A
- Minimum Credit Score: 300
OnDeck:
- Offers: Short-term loans & lines of credit
- Revenue Requirements: $100K/year
- Minimum Credit Score: 625
Lendio:
- Offers: Multiple types of business financing from 75+ lenders
- Revenue Requirements: Depends on financing type
- Minimum Credit Score: Depends on financing type
Bluevine:
- Offers: Business line of credit
- Revenue Requirements: $40K/month ($480K/year)
- Minimum Credit Score: 625/li>
Fundbox:
- Offers: Short-term lines of credit
- Revenue Requirements: $100K/year
- Minimum Credit Score: 600
National Funding:
- Offers: Term loans & equipment financing
- Revenue Requirements: $250K/year
- Minimum Credit Score: 600

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Shannon Vissers

Senior Staff Writer at Merchant Maverick

Shannon has been writing for Merchant Maverick about small business software and financing since 2015. She started writing professionally about business topics in 2005. Shannon has been featured in the Washington Post, Reader's Digest, US News, MSN, Yahoo Finance, Business Insider, and other publications. She has a bachelor's degree in English from San Diego State University and currently resides in San Diego, California.

@ShannonVissers

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1. BusinessLoans.com

❮ ❯

Offers: Term loans, lines of credit, & more
Revenue Requirements: $100K/year
Minimum Credit Score: N/A

2. Revenued Business Card

❮ ❯

Offers: Business credit card & merchant cash advances
Revenue Requirements: $15K/month ($180K/year)
Minimum Credit Score: N/A

3. Upstart

❮ ❯

Offers: Personal loans
Revenue Requirements: N/A
Minimum Credit Score: 300

4. OnDeck

❮ ❯

Offers: Short-term loans & lines of credit
Revenue Requirements: $100K/year
Minimum Credit Score: 625

5. Lendio

❮ ❯

Offers: Multiple types of business financing from 75+ lenders
Revenue Requirements: Depends on financing type
Minimum Credit Score: Depends on financing type

6. Bluevine

❮ ❯

Offers: Business line of credit
Revenue Requirements: $40K/month ($480K/year)
Minimum Credit Score: 625/li>

7. Fundbox

❮ ❯

Offers: Short-term lines of credit
Revenue Requirements: $100K/year
Minimum Credit Score: 600

8. National Funding

❮ ❯

Offers: Term loans & equipment financing
Revenue Requirements: $250K/year
Minimum Credit Score: 600