The 6 Best Unsecured Lines Of Credit For 2023

Get Started With BusinessLoans.com

Pros

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

Cons

Opaque rates & fees
Funding can take awhile to disburse

Why We Chose BusinessLoans.com For Best Unsecured Line Of Credit

BusinessLoans.com is 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.

BusinessLoans.com Services

BusinessLoans.com offers unsecured lines of credit in addition to:

Term loans
Short-term loans
Merchant cash advances

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.

2. Lendio: Best Marketplace For Unsecured Lines Of Credit

Lendio

Pros

HIgh borrowing amounts
Low credit score requirements for some products
Wide variety of financing options

Cons

Rates can be expensive
Funds can take awhile to disburse

Why We Chose Lendio For Best Unsecured Line Of Credit

Lendio 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 a lot of time to compare offers on your own, Lendio provides some of the best results you can hope for from just one application.

Lendio Services

Lendio offers unsecured lines of credit up to $200,000.

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

Get Started With Lendio

3. OnDeck: Best For Fast Approvals

OnDeck

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 Best Unsecured Line 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, it is very transparent 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 lines of credit have APRs that range from 29.9% to 65.9%, with the average borrower paying about 48.9%. There are no origination fees, but a $20 monthly maintenance fee will apply to most borrowers.

OnDeck Eligibility Requirements

Eligibility requirements for OnDeck are as follows:

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

Get Started With OnDeck

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

Rapid Finance

Get Started With Rapid Finance

Pros

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

Cons

Rates can be expensive

Why We Chose Rapid Finance For Best Unsecured 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.

5. Wells Fargo: Lowest Rates For Unsecured Lines Of Credit

Wells Fargo Business Loans

Get Started With Wells Fargo Business Loans

Pros

Low borrowing amounts
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 Best Unsecured Line Of Credit

When it comes to the lowest rates for small business financing, banks are still where it’s at. Wells Fargo remains one of the more accessible big banks for 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

Get Started With American Express Merchant Financing

6. American Express: Best Alternative Unsecured Line Of Credit

American Express Merchant Financing	Visit Site

Pros

No extra frees
Funds are disbursed quickly
Flexible term lengths

Cons

Information is scattered across company website

Why We Chose American Express For Best Unsecured Line Of Credit

Businesses that don’t want to deal with a loan marketplace or a big bank should consider American Express’s lines of credit. With simple terms and fees, quick disbursements, and fairly lenient borrower qualifications, American Express can meet a variety of short-term funding needs.

You’ll also have three possible term lengths to choose from.

American Express Services

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

American Express 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 Eligibility Requirements

Eligibility for American Express Lines of Credit are as follows:

12+ months in business
Have a valid business checking account

Note that while American Express does not provide a minimum credit rating needed to apply, your creditworthiness does figure into their calculations.

Methodology: How We Chose Our Top Picks

To select our top lenders for unsecured lines of credit, Merchant Maverick weighs factors that include interest rates, ease of application, borrower qualifications, and customer reviews. Lenders are then assigned an overall score that takes into consideration how well they stack up to similarly situated competitors.

For this list, we narrowed our consideration specifically to funders offering unsecured lines of credit. To that end, we considered factors like maintenance fees for keeping the line of credit open, as well as draw fees for using them, as well as how quickly funds could be accessed after approval.

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.

FAQs: Unsecured Lines Of Credit

Is it good to have an unsecured line of credit?

An unsecured line of credit can be a versatile way to smooth out cash flows and access emergency funds as needed. Just make sure you get one with minimal maintenance fees and reasonable interest rates.

How hard is it to get an unsecured line of credit?

Unsecured lines of credit are fairly accessible. You’ll be more likely to qualify with a credit score over 600 and steady income or revenue.

How long does it take to get an unsecured line of credit?

It depends on the lender. Alternative lenders can usually complete the application and approval process within two business days. Traditional lenders like banks will usually take longer.

In Summary: The 6 Best Unsecured Lines Of Credit

BusinessLoans.com:
- Draw fee: Varies by lender
- FICO: No minimum
- APR: Varies by lender
Lendio:
- Best marketplace for unsecured lines of credit
- FICO: 550+
- APR: Varies by lender
OnDeck:
- Best for fast approvals
- FICO: 625+
- APR: 29.9%+
Rapid Finance:
- Best for high-risk businesses
- FICO: No minimum
- Factor rate: x1.09+
Wells Fargo Business Loans:
- Best rates & terms
- FICO: 680+
- Interest rate: Prime + 1..75%
American Express Merchant Financing:
- Best alternative option
- FICO: No minimum given
- Interest rate: 3%+

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Chris Motola

Senior Staff Writer at Merchant Maverick

Chris has been writing about small business topics since 2003. In 2015, he joined Merchant Maverick, where he writes about business financing, payment processing, and demographic trends in entrepreneurship. Chris 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.

View Chris Motola's professional experience on LinkedIn.

Latest posts by Chris Motola (see all)

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1. BusinessLoans.com

❮ ❯

Draw fee: Varies by lender
FICO: No minimum
APR: Varies by lender

2. Lendio

❮ ❯

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

3. OnDeck

❮ ❯

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

4. Rapid Finance

❮ ❯

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

5. Wells Fargo Business Loans

❮ ❯

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

6. American Express Merchant Financing

❮ ❯

Best alternative option
FICO: No minimum given
Interest rate: 3%+