Best Of
Online lenders provide unsecured business loans that don't require collateral and may be faster to fund than secured loans.
An unsecured business loan has an attractive advantage over a secured loan: You don’t have to put up collateral, such as business equipment, inventory or property, to obtain financing. That means a lender cannot directly seize your assets if you fail to repay the loan.
However, even though an unsecured business loan is not backed by collateral, some lenders may still require you to sign a personal guarantee. A personal guarantee gives a lender the right to go after your personal assets (think a home, car or cash) to recoup the loan if you fail to repay the debt.
Unsecured small-business loans usually carry higher annual percentage rates than secured business loans, but they typically come with faster funding.
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Our picks for
Unsecured loans with a personal guarantee
11.00 - 61.90%
600
Pros
Cons
Qualifications:
15.00 - 78.00%
650
Pros
Cons
Qualifications:
15.00 - 68.00%
530
Pros
Cons
Qualifications:
Our pick for
Unsecured loans with no personal guarantee
10.10 - 79.80%
600
Pros
Cons
Qualifications:
| Lender | Best For | Est. APR | Min. Credit Score | Next Steps |
|---|---|---|---|---|
OnDeck - Line of credit | Best for Unsecured loans with a personal guarantee | 11.00 - 61.90% | 600 | See Your Loan Options
with Fundera by Nerdwallet |
BlueVine - Line of credit | Best for Unsecured loans with a personal guarantee | 15.00 - 78.00% | 650 | See Your Loan Options
with Fundera by Nerdwallet |
BlueVine - Invoice factoring | Best for Unsecured loans with a personal guarantee | 15.00 - 68.00% | 530 | See Your Loan Options
with Fundera by Nerdwallet |
Fundbox - Line of credit | Best for Unsecured loans with no personal guarantee | 10.10 - 79.80% | 600 | See Your Loan Options
on Fundbox's secure website |
Because obtaining an unsecured business loan doesn't require collateral, lenders will typically assess your personal credit worthiness. And while business assets may not be on the hook, some lenders may require that you provide a personal guarantee, which would put your personal assets, such as a home, at risk if you are unable to repay a business loan.
OnDeck’s unsecured business line of credit is a good option for business owners who need working capital to manage cash flow or handle unexpected expenses. Its APRs range from 11% to 63%, and its requirements are less stringent than some of its online competitors. You’ll need a minimum 600 credit score to qualify, and at least a year of business history and $100,000 in annual revenue.
OnDeck’s line of credit doesn’t require a lien on your business’s assets, although you still have to sign a personal guarantee, which makes you liable for repaying the debt if your business fails to repay.
BlueVine offers an unsecured line of credit with APRs that range from 15% to 78%. The line of credit maxes out at $250,000, which provides a little more wiggle room for larger purchases. They also come in either six- or 12-month terms, though the 12-month option is harder to qualify for. And they’re fast — it takes up to 12 hours to be approved for a line of credit, and once approved, you can receive funding within 24 hours.
BlueVine also has an invoice financing product. BlueVine will front you 85% to 90% of your outstanding invoice, then the rest (minus fees) once your customer pays you. It’s a good option if you have strong revenue and need to finance large invoices.
Fundbox is a better choice for businesses that need short-term working capital, because the lender provides a line of credit up to $150,000. Borrowings on the line of credit are repaid weekly for 12 or 24 weeks, and funding is as fast as the next business day. Qualifying requires a minimum $100,000 annual revenue and three months in business.
NerdWallet has created a comparison tool for the best small-business loans to meet your needs and goals. We gauged lender trustworthiness and user experience, among other factors, and arranged lenders by categories that include your revenue and how long you’ve been in business, so that you know which loans you qualify for.
To recap our selections...