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The Best Unsecured Lines Of Credit For Business In 2024

An unsecured line of credit might be exactly the type of funding your small business needs. Check out our top picks.

    Chris Motola
  • Last updated onUpdated

  • Erica Seppala
  • REVIEWED BY

    Erica Seppala

    Editor & Senior Staff Writer

Our content reflects the editorial opinions of our experts. While our site makes money through referral partnerships, we only partner with companies that meet our standards for quality, as outlined in our independent rating and scoring system.

An unsecured line of credit can be a versatile source of working capital for small businesses with limited assets. Rather than receiving a lump sum through a loan, businesses can draw upon an unsecured line of credit as needed for its duration.

Below you’ll find our top picks for unsecured lines of credit, accounting for different types of business borrowers and their wide-ranging needs.

Learn More About Our Top Picks

CompanyBest ForNext StepsBest For
BusinessLoans.com

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  • Best for borrowers with bad credit
  • FICO: No minimum
  • APR: Varies by lender
  • Best for borrowers with bad credit
  • FICO: No minimum
  • APR: Varies by lender

Visit Site

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Lendio

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  • Best marketplace for unsecured lines of credit
  • FICO: 550+
  • APR: Varies by lender
  • Best marketplace for unsecured lines of credit
  • FICO: 550+
  • APR: Varies by lender

Apply Now

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OnDeck

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  • Best for fast approvals
  • FICO: 625+
  • APR: 29.9%+
  • Best for fast approvals
  • FICO: 625+
  • APR: 29.9%+

Apply Now

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Rapid Finance

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  • Best for high-risk businesses
  • FICO: No minimum
  • Factor rate: x1.09+
  • Best for high-risk businesses
  • FICO: No minimum
  • Factor rate: x1.09+

Apply Now

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Wells Fargo Business Loans

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  • Best rates & terms
  • FICO: 680+
  • Interest rate: Prime + 1..75%
  • Best rates & terms
  • FICO: 680+
  • Interest rate: Prime + 1..75%

Visit Site

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Kabbage Loans

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  • Best alternative line of credit with no minimum fees
  • FICO: 660+
  • Interest rate: 3%+
  • Best alternative line of credit with no minimum fees
  • FICO: 660+
  • Interest rate: 3%+

Apply Now

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Read more below to learn why we chose these options.

The 6 Best Unsecured Business Lines Of Credit

The best unsecured lines of credit for small businesses combine flexible terms, reasonable interest rates, and minimal junk fees.

Compare Unsecured Loans Business Lines Of Credit

Credit LimitsDraw Term LengthsDraw Fees
BusinessLoans.com$5,000 - $ 3 million3 months - 5 yearsVaries
Lendio$1,000 - $250,0006 - 18 monthsVaries by lender
OnDeck$6,000 - $100,00012 monthsNone
Rapid Finance$5,001 - $250,0003 - 18 monthsUndisclosed
Wells Fargo Business Loans$5,000 - $150,0001 year - indefinite3% (ATM, over-the-counter bank withdrawals), 4% (wire transfers)
Kabbage Loans$2,000 - $250,000 ($150 for first time borrowers)6, 12, or 18 monthsNone

BusinessLoans.com: Best For Borrowers With Bad Credit

BusinessLoans.com

Total Rating 4.0
Rates & Fees4.6

Services4.0

Eligibility Requirements4.1

Application3.0

Sales & Advertising Transparency3.6

Customer Service4.1

User Reviews4.4



Pros

  • High credit limits
  • No minimum credit score to apply
  • Quick & easy application

Cons

  • Opaque rates & fees
  • Funding can take awhile to disburse

Why BusinessLoans.com Is A Great Resource For Borrowers With Bad Credit

BusinessLoans.com is a small business lender that offers unsecured lines of credit through its online marketplace. Rather than originate loans itself, BusinessLoans.com serves as a hub for a network of partnered lenders. That means businesses can apply to the entire network with a single application! Additionally, BusinessLoans.com specializes in matching borrowers with bad credit to lending options, so if you’ve had trouble getting approved through other channels, you may have better luck here.

With its accessible funding and excellent self-service options, we think BusinessLoans.com provides one of the better borrower experiences for merchants with bad credit.

BusinessLoans.com Services

In addition to unsecured lines of credit, BusinessLoans.com offers:

  • Term loans
  • Short-term loans
  • Merchant cash advances

Borrowing limits range from $5,000 to $3 million

BusinessLoans.com Rates & Fees

Rates and fees vary based on the lender and financial product you qualify to receive.

BusinessLoans.com Eligibility Requirements

Eligibility requirements for BusinessLoans.com are as follows:

  • 6 months in business
  • $100,000 per year in revenue

Note that even if you don’t meet the revenue or time in business requirements, BusinessLoans.com may be able to connect you with a financial product that works for your business.

When To Use BusinessLoans.com For Unsecured Lines Of Credit

  • You have bad credit.
  • You need to borrow large amounts of money.
  • You want to apply to multiple borrowers with a single application.

Get Started With BusinessLoans.com

Read our in-depth review

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Lendio: Best Marketplace For Unsecured Lines Of Credit

Total Rating 4.8
Rates & Fees5.0

Services5.0

Eligibility Requirements4.9

Application4.5

Sales & Advertising Transparency4.4

Customer Service4.9

User Reviews4.9



Pros

  • Excellent customer service
  • Low credit score requirements for some products
  • Wide variety of financing options

Cons

  • Rates can be expensive
  • Funds can take awhile to disburse

Why Lendio Is The Best Marketplace For Getting An Unsecured Line Of Credit

Lendio, one of our most highly rated lenders with a Merchant Maverick rating of 4.8 out 5, is a versatile small business lender marketplace that offers convenient access to a network of over 75 lenders with a single application. Many of those lenders offer unsecured lines of credit.

If you don’t have the time to apply to several lenders, Lendio provides some of the best results you can hope for from just one application. We think merchants will appreciate Lendio's excellent customer service and, if all goes well, the ability to compare offers from multiple lenders.

Lendio Services

Lendio offers unsecured lines of credit up to $250,000.

Lendio also offers:

  • Term loans
  • Short-term loans
  • Merchant cash advances
  • SBA loans
  • Equipment financing

Lendio Rates & Fees

Lendio’s rates and fees vary depending on the lender with whom you are matched.

Lendio Eligibility Requirements

Eligibility requirements for Lendio are as follows:

  • 550 credit score recommended

When To Use Lendio For Unsecured Lines Of Credit

  • You want to apply to multiple lenders with a single application.
  • You want excellent customer service.
  • You don’t need your money immediately.

Get Started With Lendio

Read our in-depth review

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OnDeck: Best For Fast Approvals

Total Rating 3.9
Rates & Fees4.6

Services2.9

Eligibility Requirements3.8

Application4.5

Sales & Advertising Transparency3.8

Customer Service4.1

User Reviews4.0



Pros

  • Fast & easy application
  • Funds are disbursed quickly
  • Transparent rates & fees

Cons

  • Rates can be expensive
  • Not available to some industries

Why We Chose OnDeck For Its Fast Access To Lines Of Credit

If time is of the essence, and it often is, OnDeck can get you an unsecured line of credit within a business day or two. In some states, it’s even possible to get your money by the end of the same day in which you apply!

While OnDeck isn’t the cheapest option, we do appreciate its transparency in terms of its rates and fees, so there shouldn’t be any unpleasant surprises for the prepared applicant.

OnDeck Services

OnDeck offers lines of credit up to $100,000 with repayment terms of 12 months.

OnDeck also offers term loans.

OnDeck Rates & Fees

OnDeck’s rates for lines of credit range between 29.9%-65.9%; but the average is 52.6%.

There’s a $20/month maintenance fee to keep your line of credit open.

OnDeck Eligibility Requirements

Eligibility requirements for OnDeck are as follows:

  • 1 year in business
  • 625 credit score
  • $100,000 per year in revenue

When To Use OnDeck For Unsecured Lines Of Credit

  • When you need access to funds ASAP.
  • You have fair credit.
  • You’ve been in business for over a year.

Get Started With OnDeck

Read our in-depth review

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Rapid Finance: Best Unsecured Line Of Credit For High-Risk Businesses

Rapid Finance

Total Rating 4.2
Rates & Fees3.6

Services4.3

Eligibility Requirements4.9

Application4.8

Sales & Advertising Transparency4.2

Customer Service2.9

User Reviews4.9



Pros

  • Suited for high-risk businesses
  • No minimum credit score
  • Funds are disbursed quickly

Cons

  • Rates can be expensive
  • Customer service is uneven

Why Rapid Finance May Be The Best Unsecured Loan Option For High-Risk Businesses

High-risk merchants can face challenges when it comes to getting funding, even if they're running a mature business and have an excellent credit rating. For companies that have been turned down due to their industry, we think Rapid Finance is one of the better ways to get a line of credit.

Rapid Finance offers a wide variety of funding options to small businesses, including unsecured lines of credit. Interest rates and fees can be high with Rapid Finance, but the lender serves borrowers that may otherwise have a hard time getting capital, whether due to poor credit, time in business, or being in a high-risk industry.

Rapid Finance Services

Rapid Finance offers lines of credit up to $250,000 with repayment terms of 3-18 months.

Rapid Finance also offers:

  • Term loans
  • Merchant cash advances
  • Invoice financing
  • SBA loans

Rapid Finance Rates & Fees

Factor rates for Rapid Finance start at x1.09.

Rapid Finance Eligibility Requirements

Rapid Finance does not disclose any minimum requirements for applicants. Note, however, that rates and products offered may vary depending on time in business, credit score, and revenue.

When To Use Rapid Finance

  • Your business is considered high-risk.
  • You’ve had trouble getting funding from other sources.
  • You need funds quickly.

Get Started With Rapid Finance

Read our in-depth review

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Wells Fargo Business Loans: Best Rates & Terms For Unsecured Business Loans

Wells Fargo Business Loans

Total Rating 3.8
Rates & Fees5.0

Services3.9

Eligibility Requirements3.7

Application3.8

Sales & Advertising Transparency4.6

Customer Service1.7

User Reviews1.5



Pros

  • Branches are accessible in most states
  • Rates tend to be inexpensive
  • Transparent rates & fees

Cons

  • Borrower qualifications may be hard to meet
  • Application process can be slow

Why We Chose Wells Fargo For Low Cost Business Lines Of Credit

When it comes to the lowest rates for small business financing, banks are still where it’s at. We've found Wells Fargo to be one of the more accessible big banks for small business lending, offering two different unsecured lines of credit with rates that start just a bit above Prime. These lines of credit have longer draw terms than you’ll typically see in the alternative market, making them a good option for businesses seeking a rainy day fund to draw upon.

While a good number of businesses will struggle to make the cut, Wells Fargo shouldn’t be out of reach for mature, profitable businesses.

Wells Fargo Services

Wells Fargo offers two unsecured lines of credit:

  • BusinessLine with credit limits up to $150,000 with a term of up to 5 years
  • Small Business Advantage with credit limits up to $50,000 with a term of up to 1 year

Wells Fargo also offers a secured line of credit.

Wells Fargo Rates & Fees

BusinessLine interest rates start at Prime + 1.75%. Small Business Advantage interest rates start at Prime + 4.5%.

BusinessLine also has an annual fee of $0-$174.

Wells Fargo Eligibility Requirements

Eligibility requirements for Wells Fargo are as follows:

  • 2 years in business (BusinessLine)
  • 680 credit score
  • $1.50 in cash flow for every $1 borrowed

When To Use Wells Fargo For Unsecured Business Loans

  • You have good credit and cash flow.
  • You’re looking for low rates.
  • You have time for a more involved application process.

Get Started With Wells Fargo Business Loans

Read our in-depth review

Jump back to comparison chart

Kabbage Loans: Best Alternative Line Of Credit With No Hidden Fees

Kabbage Loans

Total Rating 3.6
Rates & Fees4.2

Services2.8

Eligibility Requirements4.0

Application3.5

Sales & Advertising Transparency4.0

Customer Service3.1

User Reviews3.0



Pros

  • No extra frees
  • Funds are disbursed quickly
  • Flexible term lengths

Cons

  • Information is scattered across company website
  • Rates can be expensive

Why American Express Blueprint Is The Best Alternative Line Of Credit With No Hidden Fees

We recommend that merchants who don’t want to deal with a loan marketplace or a big bank consider American Express’s lines of credit. Formerly Kabbage, American Express Blueprint offers simple terms and fees, quick disbursements, and fairly lenient borrower qualifications, and three term lengths to choose from. We've found American Express Blueprint to offer most of the conveniences of an alternative fintech lender with few of the drawbacks.

American Express Blueprint Services

American Express Blueprint offers lines of credit up to $250,000 with term lengths of 6, 12, or 18 months.

American Express Blueprint Rates & Fees

American Express Business Lines of Credit charge a fee for each month in which you have an outstanding balance. Total fees accumulated over the life of the credit line generally breakdown as follows:

  • 3-9% for 6-month lines
  • 6-18% for 12-month lines
  • 9-27% for 18-month lines

American Express Blueprint Eligibility Requirements

Eligibility for American Express Lines of Credit are as follows:

  • 12+ months in business
  • 660+ credit rating
  • $3,000 per month in revenue
  • Have a valid business checking account

 

When To Use American Express Blueprint For Unsecured Loans

  • You need money quickly.
  • You have good credit.
  • You want to minimize junk fees.

Get Started With Kabbage Loans

Read our in-depth review

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Business Loan & Funding Products Review Methodology

We spend hours researching and evaluating each business loan and funding product that we review at Merchant Maverick, placing special emphasis on key characteristics to generate our ratings.

Weighted Rating Breakdown

Rates & Fees 20%
Services 20%
Eligibility Requirements 20%
Application 15%
Sales & Advertising Transparency 10%
Customer Service 10%
User Reviews 5%

When rating lenders and funding providers, we use a 31-point rubric that looks at rates and fees, services, eligibility requirements, application, sales and advertising transparency, customer service, and user reviews. We weigh each section differently to calculate the total star rating. This rubric is applied to traditional term loans, as well as short-term loans, start-up loans, lines of credit, online lending products, merchant cash advances, and equipment financing products.

  • Rates & Fees: 20% of the total star rating
  • Services: 20% of the total star rating
  • Eligibility Requirements: 20% of the total star rating
  • Application: 15% of the total star rating
  • Sales & Advertising Transparency: 10% of the total star rating
  • Customer Support: 5% of the total star rating
  • User Reviews: 5% of the total star rating

Each section is further broken down into granular, weighted subsections, in which we examine specific attributes like terms lengths, conditions of repayment, credit score and revenue requirements, ease of application, length of time to funding, the ethics involved in promoting the lending product, customer support, and the overall reputation of the lender or funding provider.

Read more about how we rate small business lenders.

Understanding Unsecured Lines Of Credit

If you’ve ever used a credit card, you’ve utilized a kind of unsecured line of credit. That is to say, you were extended a certain amount of credit that you could draw upon at will. What makes it unsecured is that you aren’t required to put up collateral when you accepted the credit card offer.

But where credit cards are designed for retail use and carry very high-interest rates on month-to-month balances, the best lines of credit grant access to working capital at lower interest rates.

Some factors to keep in my when you’re evaluating an unsecured line of credit:

  • Draw term: This is a length of time during which you can draw on the funds in your line of credit. A line of credit with a short draw term may be suited for a specific emergency, whereas a longer-term one serves as more of an insurance policy.
  • Interest rate: Interest rates for lines of credit work similarly to those of loans. The difference is you only pay interest on the funds you’ve drawn, not on the amount of credit you’re extended. This makes lines of credit well-suited for situations in which you aren’t sure exactly how much money you’ll need.
  • Administrative/maintenance fee: Some lines of credit require a service fee to keep the account open. This fee may be charged monthly or annually and may vary depending on the size of the credit facility.
  • Draw fee: Some lines of credit charge an immediate fee when funds are drawn from the line of credit. This often works similarly to an origination fee in that it’s deducted from the amount of money you receive.

What Is The Best Unsecured Line Of Credit For Your Business?

Every small business has different needs when it comes to capital, so the best unsecured line of credit for one company may differ from that of another. While you always want to minimize the cost of borrowing in terms of interest rates and fees, you’ll also want to keep in mind whether your needs or long- or short-term, and how quickly you need access to your money.

Not sure if an unsecured line of credit is the right option for your business? Cast your net wide with our list of best small business loans.

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Chris Motola

Chris Motola

Expert Contributor at Merchant Maverick
Chris has been writing about small business topics since 2003. He has been featured in Fox Business, ABC News, Yahoo Finance, GoBankingRates, Newsweek, BizJournals, and other publications. He has a Bachelor’s of Arts in English Writing Arts from SUNY Oswego, and a Masters of Science in Interactive Media from the University of Central Florida. He currently resides in the Hudson Valley region of New York.
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