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Unsecured Business Loans for Collateral-Free Cash

May 6, 2019
Small Business, Small Business Loans
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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 in the first place. 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 are likely to carry a higher annual percentage rate than secured business loans, but they typically come with faster funding.

Here are our recommendations for the best unsecured business loans for you:

Unsecured business loans with no personal guarantee

Unsecured business loans with a personal guarantee

Unsecured business loans: Summary of options

Unsecured business loans with no personal guarantee

Kabbage is a good option for borrowers with bad credit who need fast cash for short-term expenses. The company requires a minimum credit score of 560. Once approved, you can get access to funds immediately or, at most, within a few days. With a short repayment time frame and a higher APR, this is likely not your best option for a large expense, such as a costly piece of new equipment for your company.

  • Loan amount: $2,000 to $250,000.
  • APR: 24% to 99%.
  • Loan term: 6, 12 or 18 months.
  • Funding time: A few minutes to several days.
  • Read our Kabbage review.
Apply now at Kabbage

Fundbox is a better choice for businesses that need short-term working capital, because the lender provides a line of credit up to $100,000. 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 $50,000 annual revenue and three months in business.

If you have unpaid customer invoices, Fundbox also offers invoice financing. It provides an unsecured cash advance — no collateral or personal guarantee required — for up to 100% of the value of your invoices, repaid in 12 or 24 equal weekly installments, plus a fee. There’s no credit check, but you must have a minimum of $50,000 annual revenue and use online accounting software that can link to Fundbox, such as QuickBooks, FreshBooks or Harvest.

Line of Credit

  • Loan amount: $1,000 to $100,000.
  • APR: 10.1% to 79.8%.
  • Loan term: 12 weeks.
  • Funding time: As fast as next business day.
  • Read our Fundbox review
Apply now At Fundbox

Invoice financing

  • Loan amount: $1,000 to $100,000.
  • APR: 10.1% to 68.7% for 12 weeks; 11.4% to 78.6% for 24 weeks.
  • Loan term: Equal repayments over a 12- or 24-week period.
  • Funding time: As fast as the next business day.
  • Read our Fundbox review.
Apply now at Fundbox

StreetShares is an option if you haven’t built up much of a business history, because the lender requires only one year in business. You’ll also need a minimum credit score of 600 and at least $75,000 in revenue to qualify for its term loan or line of credit.

Borrowers should keep in mind one caveat: The maximum loan or line of credit you can qualify for is 20% of your annual revenue. For example, a business earning $300,000 annually can qualify for financing up to $60,000.

Term Loan

  • Loan amount: $2,000 to $250,000
  • APR: 8% to 39.9%
  • Loan term: 3 to 36 months
  • Funding time: 0 to 5 days
  • Read our StreetShares review
Apply now at StreetShares

Unsecured business loans with a personal guarantee

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.

Line of Credit

  • Loan amount: Up to $100,000
  • APR: 13.99% to 63%
  • Loan term: Repaid weekly.
  • Funding time: As fast as 24 hours but typically a few days
  • Read our OnDeck review

*APRs update quarterly

Apply now at OnDeck

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.

Like Fundbox, 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.

Line of Credit

  • Loan amount: $5,000 to $250,000.
  • APR: 15% to 78%.
  • Loan term: Repaid over 6 or 12 months.
  • Funding time: As fast as 24 hours.
  • Read our BlueVine review.
Apply now at BlueVine

Invoice Factoring

  • Loan amount: $20,000 to $5 million.
  • APR: 15% to 68%.
  • Loan term: 1 to 13 weeks.
  • Funding time: 1 to 3 days.
  • Read our BlueVine review.
Apply now at BlueVine


Unsecured business loans: Summary of options

Funding options:Good option for: Loan amount & APR
fundbox

Line of credit


Apply now at Fundbox
• Short-term working capital
• Fast cash
• $1,000 to $100,000
• 10.1% to 79.8%
fundbox

Invoice financing


Apply now at Fundbox
• Fast cash
• Invoice financing
• $1,000 to $100,000
• 10.1% to 78.6%
Kabbage_Logo_150x40
Apply now at Kabbage
• Short-term working capital
• Fast cash
• $2,000 to $250,000
• 24% to 99%
StreetShares loans
Apply now at StreetShares
• Working capital
• Good credit
• $2,000 to $250,000
• 8% to 39.9%
ondeck
Apply now at OnDeck
• Managing cash flow
• Unexpected expenses
• Up to $100,000
• 11% to 63%
bluevine

Line of credit

Apply now at BlueVine
• Fast cash
• Good credit
• $5,000 to $250,000
• 15% to 78%
bluevine

Invoice factoring

Apply now at BlueVine
• Invoice financing
• Bad credit
• $20,000 to $5 million
• 15% to 68%

Want to compare more small-business loan options?

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.

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