Unsecured Business Line of Credit: What It Is and Best Options
Unsecured business lines of credit don't require physical collateral, but you may have to guarantee your financing in other ways.
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best unsecured business lines of credit: More details
Wells Fargo: Best for low interest rates
Wells Fargo offers unsecured credit lines of up to $150,000 that are a good option for borrowers with strong credit. Rates start at 8.5%.
Wells Fargo BusinessLine® Line of Credit
with NerdWallet Small Business
Max loan amount
$150,000
Min. credit score
680
Term length
Undisclosed
Pros
- Bank line of credit with competitive interest rates.
- Revolving credit line with no scheduled annual review.
- No collateral required; no prepayment penalties.
Cons
- Must have strong credit to qualify.
- May take longer to fund than online lenders.
- Annual fee and inactivity fees may apply.
Pros
- Bank line of credit with competitive interest rates.
- Revolving credit line with no scheduled annual review.
- No collateral required; no prepayment penalties.
Cons
- Must have strong credit to qualify.
- May take longer to fund than online lenders.
- Annual fee and inactivity fees may apply.
Bluevine: Best for fast funding
Bluevine provides credit lines up to $250,000. The lender can approve and fund applications in as little as 24 hours.
May fund quickly
Bluevine - Line of credit
with NerdWallet Small Business
Max loan amount
$200,000
Min. credit score
625
Term length
6 to 12 months
Pros
- Cash can be available within 12 to 24 hours.
- Can be used to build business credit.
- Low minimum credit score requirement.
Cons
- Requires weekly payments.
- Not available in North Dakota, South Dakota or Nevada.
- Rates can be high compared with traditional lenders.
Pros
- Cash can be available within 12 to 24 hours.
- Can be used to build business credit.
- Low minimum credit score requirement.
Cons
- Requires weekly payments.
- Not available in North Dakota, South Dakota or Nevada.
- Rates can be high compared with traditional lenders.
OnDeck: Best for building business credit
OnDeck offers a flexible unsecured line of credit in amounts up to $100,000. Responsible spending can help you build your business credit history.
May fund quickly
OnDeck - Line of credit
with NerdWallet Small Business
Max loan amount
$200,000
Min. credit score
625
Term length
12 to 24 months
Pros
- Fast access to working capital.
- Accepts borrowers with a minimum credit score of 625.
- Streamlined application process with minimal documentation required.
- Can be used to build business credit.
Cons
- Not available in North Dakota.
- May require frequent weekly payments.
- Interest rates can be high compared with traditional lenders.
Pros
- Fast access to working capital.
- Accepts borrowers with a minimum credit score of 625.
- Streamlined application process with minimal documentation required.
- Can be used to build business credit.
Cons
- Not available in North Dakota.
- May require frequent weekly payments.
- Interest rates can be high compared with traditional lenders.
Fundbox: Best for bad credit
You may be able to qualify for an Fundbox line of credit with a minimum credit score of 600 (the lowest credit minimum on our list). Credit lines are available in amounts up to $150,000.
May fund quickly
Fundbox - Line of credit
with NerdWallet Small Business
Max loan amount
$250,000
Min. credit score
600
Term length
3 to 24 months
Pros
- Financing available within two business days after approval.
- Simple application with minimal documentation required.
- Low minimum credit score, time in business and annual revenue requirements.
- No prepayment penalties, account maintenance fees or inactivity fees.
Cons
- Weekly repayments required.
Pros
- Financing available within two business days after approval.
- Simple application with minimal documentation required.
- Low minimum credit score, time in business and annual revenue requirements.
- No prepayment penalties, account maintenance fees or inactivity fees.
Cons
- Weekly repayments required.
Headway Capital: Best for new businesses
Headway Capital offers lines of credit of up to $100,000. You may be able to qualify with a minimum of six months in business.
Headway Capital - Line of credit
with NerdWallet Small Business
Max loan amount
$100,000
Min. credit score
625
Term length
12 to 24 months
Pros
- Flexible qualification requirements.
- No prepayment penalties.
- Funds available by next business day after approval.
Cons
- Most borrowers are subject to a 2% draw fee.
- Not available in all U.S. states.
Pros
- Flexible qualification requirements.
- No prepayment penalties.
- Funds available by next business day after approval.
Cons
- Most borrowers are subject to a 2% draw fee.
- Not available in all U.S. states.
Bank of America: Best for established businesses
Bank of America’s business line of credit offers competitive interest rates, no annual fee and no draw fees. You’ll need to have strong credentials to qualify.
Bank of America Business Advantage Unsecured Line of Credit
with NerdWallet Small Business
Max loan amount
Undisclosed
Min. credit score
700
Term length
Undisclosed
Pros
- Revolving bank line of credit with competitive interest rates.
- No collateral required.
- No draw fees.
Cons
- Must be an established business with strong credit to qualify.
- Can be slow to fund.
- Must be an existing Bank of America customer to apply online.
- Prepayment fees may apply to early repayments.
Pros
- Revolving bank line of credit with competitive interest rates.
- No collateral required.
- No draw fees.
Cons
- Must be an established business with strong credit to qualify.
- Can be slow to fund.
- Must be an existing Bank of America customer to apply online.
- Prepayment fees may apply to early repayments.
Backd: Best for large credit limits
Backd offers an unsecured line of credit in amounts up to $1 million — the largest of any lender on our list.
Backd - Line of credit
with NerdWallet Small Business
Max loan amount
$1,000,000
Min. credit score
650
Term length
6 to 12 months
Pros
- Fast access to funds.
- Simple application with minimal documentation required.
- Large maximum funding amounts.
- Accessible to startups and borrowers with bad credit.
Cons
- Requires weekly repayment.
- Charges a draw fee.
- Interest rates can be high compared with traditional lenders.
Pros
- Fast access to funds.
- Simple application with minimal documentation required.
- Large maximum funding amounts.
- Accessible to startups and borrowers with bad credit.
Cons
- Requires weekly repayment.
- Charges a draw fee.
- Interest rates can be high compared with traditional lenders.
Jump to
Is an unsecured business line of credit right for you?
What is an unsecured business line of credit?
How does an unsecured business line of credit work?
Secured vs. unsecured business line of credit
Pros and cons of an unsecured business line of credit
Unsecured business line of credit requirements
Where to get an unsecured business line of credit
How to get an unsecured business line of credit
Frequently asked questions
Table of contents
- Is an unsecured business line of credit right for you?
- What is an unsecured business line of credit?
- How does an unsecured business line of credit work?
- Secured vs. unsecured business line of credit
- Pros and cons of an unsecured business line of credit
- Unsecured business line of credit requirements
- Where to get an unsecured business line of credit
- How to get an unsecured business line of credit
- Frequently asked questions
Is an unsecured business line of credit right for you?
An unsecured business credit line may be a good option if you:
- Don’t have physical assets to offer as collateral.
- Need fast access to flexible funding.
- Have at least three to six months in business.
- Have a credit score of 600+.
What is an unsecured business line of credit?
An unsecured line of credit is not backed by physical collateral like real estate, equipment or inventory. Although you don’t need to provide collateral, your lender will likely require a personal guarantee or Uniform Commercial Code lien in order to mitigate the risk of lending to your business.
- A personal guarantee holds you personally responsible for the debt if your business can’t pay and your lender can seize your personal assets to recover its losses.
- A UCC lien gives your lender the right to seize your assets in the event of default. UCC liens can be filed for specific assets, or your lender can file a blanket lien, which covers all of your assets.
Not all lenders file liens on their borrowers, but it’s less likely that you’ll find an unsecured business line of credit without a personal guarantee.
How does an unsecured business line of credit work?
An unsecured line of credit works like any other business credit line:
- You get access to a set limit of funds.
- You draw money as needed and only pay interest on the funds you borrow.
- You repay what you’ve borrowed over a set period of time
- You can continue to draw on the line— provided you make your payments on time and don’t exceed your credit limit.
Average interest rate on an unsecured business line of credit
The average interest rate on an unsecured business line of credit can range from an APR of 10% to 99%. Keep in mind that some lenders may quote interest as a monthly/weekly rate or a factor rate.
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If a lender charges a factor rate, you’ll want to calculate these rates into an annual percentage rate (which includes additional fees, e.g. draw fees, origination fees). APRs give you a better sense of the credit line’s total cost and make it easier to compare products from different lenders. Nerdy Tip
Secured vs. unsecured business line of credit
The biggest difference between secured and unsecured business lines of credit is collateral.
A secured business line of credit is backed by specific collateral, such as property or equipment. Lenders may also require a personal guarantee or UCC lien on secured credit lines — in addition to physical collateral.
Because collateral reduces a lender’s risk, secured lines of credit often offer:
- Lower interest rates.
- Higher credit limits.
- Longer repayment terms.
In certain circumstances, secured lines of credit can be easier to qualify for, as lenders can rely on the value of your collateral, even if you’re a startup or don’t have perfect credit.
If you’re trying to get an inventory loan, for example, the lender may prioritize the value of the products you’re looking to purchase when underwriting your application.
An unsecured business line of credit doesn’t require specific collateral. Instead, lenders tend to focus more heavily on the credit and financial history of your business.
Pros and cons of an unsecured business line of credit
Pros
- No physical collateral required.
- Fast approval times.
- Startups and borrowers with bad credit may qualify.
Cons
- Possible higher rates and less favorable terms than secured lines of credit.
- Lower credit limits than secured lines of credit.
Unsecured business line of credit requirements
The unsecured business line of credit requirements you’ll need to meet will vary based on your lender. In general, however, lenders will consider similar criteria, such as:
- Personal credit score. You’ll typically need to have a minimum credit score of 600 or higher to qualify for an unsecured business line of credit. Although online lenders may accept bad or fair credit scores, banks will likely require good credit.
- Annual revenue. Most lenders have a minimum monthly or annual revenue requirement. This requirement can range anywhere from $30,000 to $250,000 per year, or more.
- Time in business. Lenders want to be able to see that you can successfully manage and sustain your company. You’ll usually need at least three to six months in business to qualify.
- Financial history. Unsecured business line of credit lenders will use your bank statements, other financial accounts and financial statements (e.g., balance sheets, cash flow statements) to evaluate your ability to repay potential debt.
If you qualify for a credit line, your lender will also use these factors to determine your credit limit, interest rates and repayment period. The stronger business credentials you have, the more likely you are to receive competitive rates and terms.
Where to get an unsecured business line of credit
Banks and credit unions
Best for: Established businesses with good credit.
Unsecured business lines of credit are available from traditional lenders, like banks and credit unions. Like many other types of small-business loans, banks and credit unions usually offer the most competitive interest rates and repayment terms, but can have strict qualification requirements.
You’ll likely need good credit, strong finances and, in most cases, a few years in business, to get an unsecured credit line from a bank.
If you have a previous relationship with one of these institutions, you might start by contacting it to see what options are available. Smaller, community banks and credit unions can also be a good choice, as they’re more likely to approve loan applications compared with larger banks.
It’s important to keep in mind, however, that these lenders tend to have slow funding processes.
Online lenders
Best for: Fast funding; borrowers who can’t qualify for traditional options.
Unsecured business lines of credit are also available from a variety of online lenders. Unlike more traditional financial institutions, online lenders typically offer fast, simple financing. Certain lenders can even approve and fund applications in as little as 24 hours.
These companies often have flexible eligibility criteria, and some are willing to work with startups and/or borrowers with bad credit. As a tradeoff for speed and flexibility, however, online lenders usually charge higher interest rates.
How to get an unsecured business line of credit
To get an unsecured business line of credit, you can follow these steps:
1. Decide how much funding you need
Think about why you need a business line of credit and what you’re going to use it for. Are you planning to purchase inventory — or are you looking for an emergency fund? Asking these types of questions can help you determine how much funding is right for your needs.
2. Evaluate your business’s credentials and make sure you can qualify
Although unsecured business line of credit requirements will vary by lender, most companies will consider your personal credit score, annual revenue and time in business during the underwriting process.
Remember that lenders are more likely to prioritize your credit and financial history with unsecured credit lines, as you’re not backing your funding with physical collateral.
3. Research and compare line of credit lenders.
Once you have an understanding of your funding needs and qualifications, you can start researching small-business lender options. As you compare different providers, you’ll want to consider:
- Maximum credit line amounts.
- Interest rates and additional fees.
- Repayment terms and renewal periods.
- Personal guarantee and/or UCC lien requirements.
- Funding speed.
- Application process.
- Customer service and lender reputation.
Keep in mind that not all lenders will offer an unsecured business line of credit. If you’re unsure if a credit line is unsecured or secured, you should reach out to the lender directly for more information.
4. Gather your documentation and submit an application
When you apply for an unsecured business line of credit, you’ll likely need to provide some, if not all, of the following:
- Basic information about you and your business.
- Business and personal bank statements.
- Business and personal tax returns.
- Business financial statements.
If you’re working with an online lender, you may be able to connect your financial accounts directly to the lender’s platform, in lieu of providing certain documents.
Generally, online lenders will offer streamlined applications and fast business loans. Traditional lenders, on the other hand, may require more extensive documentation and have slower funding times. You may also need to visit a branch in person to apply.
5. Review and sign your loan agreement
After you’ve been approved for an unsecured line of credit, your lender will provide you with a business loan agreement to sign. This agreement will include information about your credit limit, interest rates, fees, repayment period and renewal terms.
Review the agreement thoroughly and make sure you understand all of the terms and conditions before signing. If you have any questions or need clarification, reach out to your lender for assistance.
Frequently asked questions
Yes. Because unsecured lines of credit don’t require collateral, they can be a good option for new businesses that don’t have sufficient assets to secure their credit line. Generally, you’ll need at least three to six months in business to qualify for a line of credit.
Many national banks, such as Bank of America, Wells Fargo and PNC Bank, offer unsecured business lines of credit. Regional and community banks may also offer these types of credit lines.
Qualifying for an unsecured credit line depends on your business financials, credit score and lender. Typically, banks and credit unions require good credit and at least two years in business. However, online lenders may offer unsecured business lines of credit to borrowers with credit scores as low as 600 and only three months in business.
Banks and credit unions typically require a credit score of 680 to 700 for an unsecured business line of credit, whereas online lenders may accept scores as low as 600.
Last updated on June 25, 2026
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