Advertiser Disclosure

💳 Save money on credit card processing with one of our top 5 picks for 2024

The 6 Best Unsecured Lines Of Credit

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

Advertiser Disclosure: Our unbiased reviews and content are supported in part by affiliate partnerships, and we adhere to strict guidelines to preserve editorial integrity.

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

Read More

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

Visit Site

Read More

Lendio

Read More

  • 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

Read More

OnDeck

Read More

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

Apply Now

Read More

Rapid Finance

Read More

  • 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

Read More

Wells Fargo Business Loans

Read More

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

Visit Site

Read More

Show More Options
American Express Merchant Financing

Read More

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

Visit Site

Read More

Show Fewer Options

Read more below to learn why we chose these options.

Table of Contents

The 6 Best Unsecured Lines Of Credit

The best unsecured lines of credit for small businesses combine flexible terms, reasonable interest rates, and minimal junk fees. Our list of best unsecured lines of credit includes lenders like Lendio, OnDeck, and American Express.

BusinessLoans.com: Best Unsecured Line Of Credit Marketplace For Borrowers With Bad Credit

BusinessLoans.com


Visit Site


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.

Get Started With BusinessLoans.com

Read our in-depth review

Jump back to comparison chart

Lendio: Best Marketplace For Unsecured Lines Of Credit

Lendio


Apply Now


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

Read our in-depth review

Jump back to comparison chart

OnDeck: Best For Fast Approvals

OnDeck


Apply Now


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

Read our in-depth review

Jump back to comparison chart

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

Rapid Finance


Apply Now


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.

Get Started With Rapid Finance

Read our in-depth review

Jump back to comparison chart

Wells Fargo: Lowest Rates For Unsecured Lines Of Credit

Wells Fargo Business Loans


Visit Site


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 Wells Fargo Business Loans

Read our in-depth review

Jump back to comparison chart

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.

Get Started With American Express Merchant Financing

Jump back to comparison chart

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.

Jump back to comparison chart

Chris Motola

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.
Chris Motola
View Chris Motola's professional experience on LinkedIn.
Chris Motola

Latest posts by Chris Motola (see all)