Lender | NerdWallet rating | Best For | Max loan amount | Min. time in business | Min. interest rate | Term length | Learn more |
---|---|---|---|---|---|---|---|
with Fundera by NerdWallet | Read expert review | Best for borrowers with bad credit | $1,500,000 | 6 months | Undisclosed | 4 to 18 months | with Fundera by NerdWallet |
with Fundera by NerdWallet | Read expert review | Best for women- and minority-owned businesses | $250,000 | 12 months | 8.49% | 12 months to 5 years | with Fundera by NerdWallet |
with Fundera by NerdWallet | Read expert review | Best for long-term loans | Undisclosed | 24 months | Undisclosed | 12 months to 5 years | with Fundera by NerdWallet |
with Fundera by NerdWallet | Read expert review | Best for short-term loans | $250,000 | 12 months | 31.3% | 18 to 24 months | with Fundera by NerdWallet |
with Fundera by NerdWallet | Read expert review | Best for flexible qualifications | $100,000 | 6 months | 35% | 12 to 24 months | with Fundera by NerdWallet |
with Fundera by NerdWallet | Read expert review | Best for startups | $250,000 | 3 months | 36% | 3 to 6 months | with Fundera by NerdWallet |
with Fundera by NerdWallet | Read expert review | Best for fast loans | $250,000 | 12 months | 14% | Up to 6 months | with Fundera by NerdWallet |
of the best unsecured business loans: More details
Fora Financial: Best 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
Pros
- Cash can be available quickly.
- Get a discount for prepaying.
- No collateral required.
- Low minimum credit score requirement.
Cons
- Charges a factor rate that makes it more difficult to compare costs with other lenders.
- Can’t build business credit.
- Longest loan term is 18 months.
- Charges an origination fee.
Pros
- Cash can be available quickly.
- Get a discount for prepaying.
- No collateral required.
- Low minimum credit score requirement.
Cons
- Charges a factor rate that makes it more difficult to compare costs with other lenders.
- Can’t build business credit.
- Longest loan term is 18 months.
- Charges an origination fee.
with Fundera by NerdWallet
Accion: Best for women- and minority-owned businesses
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
with Fundera by NerdWallet
Pros
- Loan amounts from $5,000 to $250,000.
- Customized loan terms.
- No prepayment penalty.
Cons
- Slower processing speed compared with online lenders.
- Charges an origination fee.
- Not available in all U.S. states.
Pros
- Loan amounts from $5,000 to $250,000.
- Customized loan terms.
- No prepayment penalty.
Cons
- Slower processing speed compared with online lenders.
- Charges an origination fee.
- Not available in all U.S. states.
with Fundera by NerdWallet
Bank of America: Best for long-term 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
with Fundera by NerdWallet
Pros
- Bank loan with competitive interest rates.
- No collateral required.
- Bank of America’s Preferred Rewards program can offer interest rate discounts and other perks.
Cons
- Can be slow to fund.
- Prepayment fees may apply to early repayments.
- Must be an existing Bank of America customer to apply online.
- Charges an origination fee.
Pros
- Bank loan with competitive interest rates.
- No collateral required.
- Bank of America’s Preferred Rewards program can offer interest rate discounts and other perks.
Cons
- Can be slow to fund.
- Prepayment fees may apply to early repayments.
- Must be an existing Bank of America customer to apply online.
- Charges an origination fee.
with Fundera by NerdWallet
OnDeck: Best for short-term 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
Pros
- Cash can be available within the same business day (does not apply in California or Vermont).
- Accepts borrowers with a minimum credit score of 625.
- Streamlined application process with minimal documentation required.
- Can be used to build business credit.
Cons
- Cannot fund North Dakota-based businesses.
- Requires frequent (daily or weekly) repayments.
- Interest rates can be high compared with traditional lenders.
- Charges origination fee.
Pros
- Cash can be available within the same business day (does not apply in California or Vermont).
- Accepts borrowers with a minimum credit score of 625.
- Streamlined application process with minimal documentation required.
- Can be used to build business credit.
Cons
- Cannot fund North Dakota-based businesses.
- Requires frequent (daily or weekly) repayments.
- Interest rates can be high compared with traditional lenders.
- Charges origination fee.
with Fundera by NerdWallet
Headway Capital: Best for flexible qualifications
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
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.
with Fundera by NerdWallet
Fundbox: Best for startups
Fundbox makes loans to companies with just three months in business.
Fundbox - Line of credit
with Fundera by NerdWallet
Pros
- Financing available within one business day 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
- Rates are high compared with traditional banks.
- Weekly repayments required over a short term (maximum of 24 weeks).
Pros
- Financing available within one business day 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
- Rates are high compared with traditional banks.
- Weekly repayments required over a short term (maximum of 24 weeks).
with Fundera by NerdWallet
Bluevine: Best for fast loans
Bluevine can approve and fund line of credit applications in as little as 12 hours.
Bluevine - Line of credit
with Fundera by NerdWallet
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.
with Fundera by NerdWallet
A closer look at our picks for the best unsecured business loans
Fora Financial: Best for borrowers with bad credit
Pros
- Cash can be available quickly.
- Get a discount for prepaying.
- Low minimum credit score requirement.
Cons
- Charges a factor rate that makes it more difficult to compare costs with other lenders.
- Can’t build business credit.
- Longest loan term is 18 months.
- Charges an origination fee.
Accion Opportunity Fund: Best for women- and minority-owned businesses
Pros
- Loan amounts from $5,000 to $250,000.
- Customized loan terms.
- No prepayment penalty.
Cons
- UCC lien filed for loans greater than $50,000.
- Slower processing speed compared with online lenders.
- Not available in all U.S. states.
Bank of America: Best for long-term loans
Pros
- Bank loan with competitive interest rates.
- Bank of America’s Preferred Rewards program can offer interest rate discounts and other perks.
Cons
- Can be slow to fund.
- Prepayment fees may apply to early repayments.
- Must be an existing Bank of America customer to apply online.
- Charges an origination fee.
OnDeck: Best for short-term loans
Pros
- Cash can be available within the same business day (does not apply in California or Vermont).
- Accepts borrowers with a minimum credit score of 625.
- Streamlined application process with minimal documentation required.
- Can be used to build business credit.
Cons
- Cannot fund North Dakota-based businesses.
- Requires frequent (daily or weekly) repayments.
- Interest rates can be high compared with traditional lenders.
- Charges origination fee.
Headway Capital: Best for flexible qualifications
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.
Fundbox: Best for startups
Pros
- Financing available within one business day 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
- Rates are high compared with traditional banks.
- Weekly repayments required over a short term (maximum of 24 weeks).
Bluevine: Best for fast loans
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.
What is an unsecured business loan?
Types of unsecured business loans
Business term loans
Business lines of credit
Invoice factoring
Merchant cash advance
How to get an unsecured business loan
1. Determine your financing needs
2. Evaluate your business’s qualifications
3. Compare lenders
4. Submit an application
- Basic information about you and your business.
- Business and personal tax returns.
- Business and personal bank statements.
- Financial statements.
How to compare unsecured business loans
- Loan amount. Some lenders may not offer the amount you were hoping for. If you borrow less than what you need to fund your business goals, you may risk falling short of revenue targets, making it harder to pay off the loan.
- Interest rate and fees. These can vary widely across lenders. That’s why it’s best to compare each loan offer’s APR, which includes both the interest rate and any upfront fees. You can also use our
to compare total costs across the life of each loan.business loan calculator - Guarantee requirements. While you’re not required to put up a specific business asset as collateral for unsecured loans, you’ll likely be asked to guarantee the loan via a personal guarantee and/or Uniform Commercial Code lien instead. Make sure you know what you’re risking before putting pen to paper.
- Repayment terms. How long you have to repay your loan and how often you’re required to make payments all vary from lender to lender. Make sure your business has enough positive cash flow before committing to frequent payment terms or shorter-term loans. And don’t forget to ask about prepayment penalties — these are fees some lenders charge when you make additional payments.
Pros and cons of unsecured business loans
Pros
- Fast access to funds.
- Physical collateral not required.
- Startups and borrowers with bad credit may qualify.
Cons
- 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).
Alternatives to unsecured business loans
- SBA loans. If you only need $50,000 or less in financing, an SBA 7(a) small loan, SBA Express loan or SBA Export Express loan may not require collateral. But if you need more than that, an SBA lender may require collateral. Read more about
.SBA loan collateral requirements - Personal loans. If you have strong personal credit and don’t need a lot of money, an
may help you get funds for your business without putting up collateral.unsecured personal loan - Business credit cards. For newer businesses without collateral, steady revenue or an extensive track record,
can help manage small, daily expenses or unexpected costs. Just keep in mind that high interest costs can add up quickly if you carry a balance.business credit cards - Small-business grants. Although they can be competitive and may not fully cover your funding needs, grants provide free money for those who qualify. NerdWallet includes a large list of
to help you get started.small-business grants
Best unsecured business loans, in summary
Frequently asked questions
How Fundera by NerdWallet works
Fill out one simple application
Answer a 3-minute questionnaire about your business to get personalized lending options. It’s free and won’t impact your credit score.
See your business loan options
Compare interest rates and repayment terms to choose the best product for your needs.
Get your loan
If the lender approves you, you’ll sign closing documents in order to receive funds. Some lenders can approve and fund loans within one business day.