How much do you need?
We’ll start with a brief questionnaire to better understand the unique needs of your business.
Once we uncover your personalized matches, our team will consult you on the process moving forward.
Here are 10 unsecured business loans
Lender | NerdWallet Rating▼ | Max loan amount▼ | Min. credit score▼ | Next steps |
---|---|---|---|---|
Bank of America Business Advantage Unsecured Term Loan | 5.0/5 Best for Long-term unsecured business loans | Undisclosed | 700 | |
OnDeck - Online term loan with Fundera by NerdWallet | 5.0/5 Best for Short-term unsecured business loans | $250,000 | 625 | with Fundera by NerdWallet |
Bluevine - Line of credit with Fundera by NerdWallet | 5.0/5 Best for Fast unsecured business loans | $250,000 | 625 | with Fundera by NerdWallet |
Wells Fargo Small Business Advantage® Line of Credit | 5.0/5 Best for Unsecured business lines of credit | $50,000 | 680 | |
Headway Capital - Line of credit with Fundera by NerdWallet | 5.0/5 Best for Easy unsecured business loans | $100,000 | 625 | with Fundera by NerdWallet |
Fundbox - Line of credit | 5.0/5 Best for Unsecured business loans for startups | $150,000 | 600 | |
Fora Financial - Online term loan with Fundera by NerdWallet | 4.5/5 Best for Unsecured business loans for borrowers with bad credit | $1,500,000 | 570 | with Fundera by NerdWallet |
Accion Opportunity Fund - Small Business Working Capital Loan | 5.0/5 Best for Unsecured business loans for women and minority groups | $250,000 | 570 | |
AltLINE - Invoice Factoring | 4.5/5 Best for Unsecured invoice factoring | $10,000,000 | 300 | |
Credibly Merchant Cash Advance | Best for Unsecured business loans with no personal guarantee | $600,000 | 500 | |
Here are 10 unsecured business loans
Best for Long-term unsecured business loans
Max Amount
Undisclosed
Min. Credit Score
700
Best for Short-term unsecured business loans
Best for Fast unsecured business loans
Best for Unsecured business lines of credit
Max Amount
$50,000
Min. Credit Score
680
Best for Easy unsecured business loans
Best for Unsecured business loans for startups
Max Amount
$150,000
Min. Credit Score
600
Best for Unsecured business loans for borrowers with bad credit
Best for Unsecured business loans for women and minority groups
Max Amount
$250,000
Min. Credit Score
570
Best for Unsecured invoice factoring
Max Amount
$10,000,000
Min. Credit Score
300
Best for Unsecured business loans with no personal guarantee
Max Amount
$600,000
Min. Credit Score
500
I'M INTERESTED IN:
Our pick for
Long-term unsecured business loans
Bank of America’s unsecured business loan offers competitive interest rates and repayment terms ranging from 12 to 60 months.
Bank of America Business Advantage Unsecured Term Loan
Max loan
Undisclosed
Min. Credit score
700
Our pick for
Short-term unsecured business loans
You can use upfront cash from OnDeck's term loans to make large purchases, then pay the loan back over up to two years.
OnDeck - Online term loan
with Fundera by NerdWallet
Max loan
$250,000
Min. Credit score
625
Apr range
27.20-99.90%
with Fundera by NerdWallet
Our pick for
Fast unsecured business loans
Bluevine can approve and fund line of credit applications in as little as 12 hours.
Bluevine - Line of credit
with Fundera by NerdWallet
Max loan
$250,000
Min. Credit score
625
Apr range
20.00-50.00%
with Fundera by NerdWallet
Our pick for
Unsecured business lines of credit
Wells Fargo’s business line of credit offers competitive interest rates and may be available to companies with less than two years in business.
Wells Fargo Small Business Advantage® Line of Credit
Max loan
$50,000
Min. Credit score
680
Apr range
13.00-15.00%
Our pick for
Easy unsecured business loans
You may be able to qualify for Headway’s unsecured line of credit with six months in business, a minimum annual revenue of $50,000 and a credit score of 625 or higher.
Headway Capital - Line of credit
with Fundera by NerdWallet
Max loan
$100,000
Min. Credit score
625
Apr range
35.00-80.00%
with Fundera by NerdWallet
Our pick for
Unsecured business loans for startups
Fundbox makes loans to companies with just six months in business.
Fundbox - Line of credit
Max loan
$150,000
Min. Credit score
600
Apr range
36.00-99.00%
Our pick for
Unsecured business loans for borrowers with bad credit
Fora Financial has a minimum credit score requirement of 570 and you can qualify with as little as six months in business.
Fora Financial - Online term loan
with Fundera by NerdWallet
Max loan
$1,500,000
Min. Credit score
570
with Fundera by NerdWallet
Our pick for
Unsecured business loans for women and minority groups
Accion Opportunity Fund offers unsecured business loans of up to $250,000. The lender says 90% of its borrowers are women, people of color and/or low-to-moderate income.
Accion Opportunity Fund - Small Business Working Capital Loan
Max loan
$250,000
Min. Credit score
570
Apr range
8.49-29.67%
Our pick for
Unsecured invoice factoring
AltLINE offers business-to-business companies access to cash quickly instead of having to wait for their customers to pay their invoices.
AltLINE - Invoice Factoring
Max loan
$10,000,000
Min. Credit score
300
Our pick for
Unsecured business loans with no personal guarantee
Credibly doesn’t require you to sign a personal guarantee to get a merchant cash advance. Like all MCAs, however, this product may be expensive.
Credibly Merchant Cash Advance
Max loan
$600,000
Min. Credit score
500
What is an unsecured business loan?
How do unsecured business loans work?
Types of unsecured business loans
Business term loans
Business lines of credit
Invoice factoring
Merchant cash advance
Pros and cons of unsecured business loans
Fast access to funds.
Physical collateral not required; you can get financing even if your business doesn’t have many physical assets.
Startups and borrowers with bad credit may qualify.
APRs typically higher than secured business loans.
Personal guarantee or UCC lien likely required.
Less desirable terms (e.g. lower loan amounts, shorter repayment terms).
Can be difficult to access the best options; you’ll likely need strong financials and credit to get the most competitive unsecured loans, typically offered by banks.
Where to get an unsecured business loan
How to get an unsecured business loan
1. Determine your financing needs
2. Evaluate your business’s qualifications
3. Compare lenders
🤓 Nerdy Tip
Keep an eye out for predatory lenders who impose unfair or deceitful loan terms on a borrower, and target high-risk borrowers in particular. To avoid these lenders and scams, always look for transparent terms and rates, compare fees to reputable lenders and check to see if the lender reports to one of the three major credit bureaus.4. Submit an application
- Basic information about you and your business.
- Business and personal tax returns.
- Business and personal bank statements.
- Financial statements.
Alternatives to unsecured business loans
- SBA loans. SBA loans are partially guaranteed by the U.S. Small Business Administration and issued by banks and credit unions. These loans offer long repayment terms and low interest rates. Although all SBA loans require a personal guarantee, you may not need to provide physical collateral for SBA 7(a) loans of $50,000 or less. You will, however, likely need good credit and strong finances to qualify.
- Business credit cards. If your time in business is too short to qualify for an online business loan, business credit cards for startups are typically available to companies of all ages. Business credit cards offer flexible, unsecured financing that you can use for everyday spending as well as larger purchases, depending on your credit limit. You’ll likely still need to provide a personal guarantee, though.
- Small-business grants. Small-business grants can be a good option if you want to avoid taking on debt — or can’t yet qualify for affordable financing. It can be time-consuming to find and apply for the right grant for your business — but if you can secure one, you have access to free funds you don’t need to repay.
- Crowdfunding. Crowdfunding can also be worth considering if your business doesn’t quite meet traditional loan requirements. You can create a business profile on a crowdfunding platform, like Kickstarter, and publish a funding goal to raise money from the public. Typically, you’ll offer some type of reward or equity in exchange for funds. Crowdfunding can be a particularly good choice for product-based businesses that have an internet following.
Find the right business loan
Frequently asked questions
Methodology
Wondering if you qualify?
It’s possible to get a business loan even if you have bad credit. Bad-credit business loans are available from alternative sources, like online or nonprofit lenders.