Here are 7 of the best 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 loans | Undisclosed | 700 | Read Review |
OnDeck - Online term loan | 4.8/5 Best for short-term loans | $250,000 | 625 | with Fundera by NerdWallet |
Bluevine - Line of credit | 5.0/5 Best for fast loans | $250,000 | 625 | with Fundera by NerdWallet |
Headway Capital - Line of credit | 4.7/5 Best for flexible qualifications | $100,000 | 625 | with Fundera by NerdWallet |
Fundbox - Line of credit Read Review | 4.9/5 Best for startups | $150,000 | 600 | Read Review |
Fora Financial - Online term loan | 4.7/5 Best for borrowers with bad credit | $1,500,000 | 570 | with Fundera by NerdWallet |
Accion Opportunity Fund - Small Business Working Capital Loan Read Review | 4.9/5 Best for women- and minority-owned businesses | $250,000 | 600 | Read Review |
Here are 7 of the best unsecured business loans
Best for long-term loans
Best for short-term loans
Best for fast loans
Best for flexible qualifications
Best for startups
Best for borrowers with bad credit
Best for women- and minority-owned businesses
I'M INTERESTED IN:
Our pick 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
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.
Bank of America Business Advantage Unsecured Term Loan
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.
Qualifications:
- Minimum credit score: 700.
- Minimum time in business: 24 months.
- Minimum annual revenue: $100,000.
Our pick 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
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.
OnDeck - Online term loan
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.
Qualifications:
- Minimum credit score: 625.
- Minimum time in business: 12 months.
- Minimum annual revenue: $100,000.
- Must have business bank account.
Our pick for
fast loans
Bluevine can approve and fund line of credit applications in as little as 12 hours.
Bluevine - Line of credit
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.
Bluevine - Line of credit
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.
Qualifications:
- Minimum credit score: 625.
- Minimum time in business: 12 months.
- Minimum annual revenue: $120,000.
- No bankruptcies in the past year.
Our pick 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
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.
Headway Capital - Line of credit
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.
Qualifications:
- Minimum credit score: 625.
- Minimum time in business: Six months.
- Minimum annual revenue: $50,000.
Our pick for
startups
Fundbox makes loans to companies with just three months in business.
Fundbox - Line of credit
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).
Fundbox - Line of credit
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).
Qualifications:
- Minimum credit score: 600.
- Minimum time in business: 3 months.
- Minimum annual revenue: $30,000.
Our pick 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
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.
Fora Financial - Online term loan
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.
Qualifications:
- In business for at least six months.
- At least $20,000 per month in revenue.
- No open bankruptcies or dismissed bankruptcies within the past year.
Our pick 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
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.
Accion Opportunity Fund - Small Business Working Capital Loan
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.
Qualifications:
- Minimum credit score: 600.
- Minimum time in business: 12 months.
- Minimum annual revenue: $50,000.
Bank of America
- You have strong personal credit and at least two years in business.
- You’d like to repay your loan over one year or more.
- You’re an existing Bank of America customer.
- You want to build business credit.
- You’re a startup or have a lower credit score.
- You need fast access to funds.
OnDeck
- You want short-term funding for a specific business purpose.
- You need access to funds in just a few days.
- You’re a newer business and/or have fair credit.
- You want to build business credit.
- You want a term loan with a monthly repayment schedule.
- You have less than one year in business.
Bluevine
- You have at least one year in business and good revenue.
- You’re looking for access to working capital within 24 hours of approval.
- You want to build business credit.
- You’re a brand-new business.
- You want to repay funds over a long period of time.
Headway Capital
- You have at least six months in business.
- You have bad personal credit.
- You want fast access to working capital.
- You need more than $100,000 in funding.
- You want to build business credit.
- You don’t want to pay a draw fee on your credit line.
Fundbox
- You have at least six months in business.
- You need funding within a few days.
- You want to build business credit.
- You don’t want to pay draw or account maintenance fees.
- You need more than $150,000 in business capital.
- You want to repay your funds on a monthly basis over a longer period of time.
Fora Financial
- You have a personal credit score of at least 570.
- You want a discount for prepaying your loan.
- Your monthly revenue is less than $20,000.
- You want to build business credit.
- You prefer a longer repayment period (greater than 18 months).
Accion Opportunity Fund
- You want a loan with competitive interest rates.
- You have bad personal credit.
- You’d prefer a longer repayment period (one year or more).
- You’re a women-, minority- or veteran-owned business.
- You want funding in less than one week.
- You have less than a year in operation.
Fast access to funds.
Physical collateral not required.
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).
Strong financials and credit often needed to get the most competitive unsecured loans.
Business term loans
Business lines of credit
Invoice factoring
Merchant cash advance
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.
5. Address lender questions
6. Review loan terms
- 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 business loan calculator to compare total costs across the life of each loan.
- 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.
Here’s how we evaluate each lender
A guide to our star ratings
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.