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Once we uncover your personalized matches, our team will consult you on the process moving forward.
Here are 7 of the best unsecured business loans
| Lender | NerdWallet Rating▼ | Max loan amount▼ | Min. credit score▼ | Next steps |
|---|---|---|---|---|
Fora Financial - Online term loan with Fundera by NerdWallet | 4.7/5 Best for borrowers with bad credit | $1,500,000 | 570 | with Fundera by NerdWallet |
OnDeck - Online term loan with Fundera by NerdWallet | 4.8/5 Best for short-term loans | $250,000 | 625 | with Fundera by NerdWallet |
Bluevine - Line of credit with Fundera by NerdWallet | 5.0/5 Best for fast loans | $250,000 | 625 | with Fundera by NerdWallet |
Headway Capital - Line of credit with Fundera by NerdWallet | 4.7/5 Best for flexible qualifications | $100,000 | 625 | with Fundera by NerdWallet |
Bank of America Business Advantage Unsecured Term Loan | 5.0/5 Best for long-term loans | Undisclosed | 700 | Read Review |
Fundbox - Line of credit | 4.9/5 Best for startups | $150,000 | 600 | Read Review |
Accion Opportunity Fund - Small Business Working Capital Loan | 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 borrowers with bad credit
Best for short-term loans
Best for fast loans
Best for flexible qualifications
Best for long-term loans
Best for startups
Best for women- and minority-owned businesses
I'M INTERESTED IN:
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
Max loan amount
$1,500,000
Min. credit score
570
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
Max loan amount
$1,500,000
Min. credit score
570
Fora Financial has a minimum credit score requirement of 570 and you can qualify with as little as six months in business.
Fora Financial can be a good fit for borrowers who may fall short of qualifying for traditional bank financing or young but established small businesses looking for speedy financing.
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
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
Max loan amount
$250,000
Min. credit score
625
Est. APR
27.20-99.90%
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.
May fund quickly
OnDeck - Online term loan
Max loan amount
$250,000
Min. credit score
625
Est. APR
27.20-99.90%
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 offers a fast term loan for small-business owners with less-than-stellar credit who want to expand.
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.
May fund quickly
Our pick for
fast loans
Bluevine can approve and fund line of credit applications in as little as 12 hours.
Bluevine - Line of credit
Max loan amount
$250,000
Min. credit score
625
Est. APR
18.00-48.00%
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.
May fund quickly
Bluevine - Line of credit
Max loan amount
$250,000
Min. credit score
625
Est. APR
18.00-48.00%
Bluevine can approve and fund line of credit applications in as little as 12 hours.
Bluevine's 26-week line of credit provides fast working capital for short-term borrowing needs.
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.
May fund quickly
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
Max loan amount
$100,000
Min. credit score
625
Est. APR
35.00-80.00%
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
Max loan amount
$100,000
Min. credit score
625
Est. APR
35.00-80.00%
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 offers a fast and flexible line of credit for borrowers who may not qualify for more traditional options.
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
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
Max loan amount
Undisclosed
Min. credit score
700
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
Max loan amount
Undisclosed
Min. credit score
700
Bank of America’s unsecured business loan offers competitive interest rates and repayment terms ranging from 12 to 60 months.
Bank of America’s term loan offers competitive interest rates and flexible repayment terms — with no collateral required.
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
startups
Fundbox makes loans to companies with just three months in business.
Fundbox - Line of credit
Max loan amount
$150,000
Min. credit score
600
Est. APR
36.00-99.00%
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).
May fund quickly
Fundbox - Line of credit
Max loan amount
$150,000
Min. credit score
600
Est. APR
36.00-99.00%
Fundbox makes loans to companies with just three months in business.
Fundbox offers a business line of credit to fill a cash flow gap, and qualifying is easier than with other lenders.
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.
May fund quickly
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
Max loan amount
$250,000
Min. credit score
600
Est. APR
8.49-24.99%
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
Max loan amount
$250,000
Min. credit score
600
Est. APR
8.49-24.99%
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 is a good option for businesses that haven't been able to secure traditional financing. The lender targets its funding efforts toward minority, women and low-to-moderate-income entrepreneurs.
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.
Fora Financial
Best for borrowers with bad credit
Fora Financial may be able to fund your business even if your credit score is below 600 and you’ve only been in business for
6
months. This is a great option for businesses that have strong cash flow and are making a large purchase. Although you’ll get a discount for prepaying your loan, Fora uses factor rates which can often cost much more when compared to other lenders. Additionally, the longest term is less than two years, meaning your payments will likely be high.Can be a good option if:
- You have bad personal credit.
- You want a discount for prepaying your loan.
May not be a fit if:
- Your annual revenue is less than $240000.
- You want to build business credit.
OnDeck
Best for short-term loans
OnDeck’s online business loan offers terms up to
24
months, with lower credit score and time in business requirements than traditional lenders. Due to the high payment frequency though (daily or weekly), this short-term loan option is best for businesses that have steady cash flow but can’t qualify with traditional lenders for other reasons, like time in business or personal credit score.Can be a good option if:
- You need access to funds in just a few days.
- You want to build business credit.
May not be a fit if:
- You want a monthly repayment schedule.
- You have less than12months in business.
Bluevine
Best for fast loans
Bluevine is an online lender that offers unsecured lines of credit up to $
250000
, with a minimum credit score requirement of only 625
. If approved, funds can be available in as little as 24 hours, which can make a huge difference if you’re in need of cash to cover a payment, or you’re trying to capitalize on a time-sensitive opportunity.Can be a good option if:
- You need fast access to working capital.
- You want to build business credit.
May not be a fit if:
- You’re a brand-new or pre-revenue business.
- You want to repay funds over a long period of time.
Headway Capital
Best for flexible qualifications
Headway Capital’s line of credit has flexible requirements. Borrowers may qualify if they meet following minimum requirements:
6
months in business, a 625
credit score and $50000
in annual revenue. If approved, you can be funded as quickly as the following business day. Unlike many other online lenders, Headway will also work with you on repayment terms and payment options — terms can be up to 24
months and you can choose whether monthly or weekly payments work best for your cash flow. The tradeoffs involve higher rates and draw fees.Can be a good option if:
- You have at least6months in business.
- You have bad personal credit.
- You want fast access to working capital.
May not be a fit if:
- You need more than $100000in funding.
- You want to build business credit.
- You don’t want to pay a draw fee on your credit line.
Bank of America
Best for long-term loans
Bank of America’s unsecured business loan has competitive rates and loan terms that go up to
60
months, making it a good option for larger purchases that can be paid off over a long term. It’s best for established businesses that have strong credit and want to avoid pledging high-value assets as collateral on a business loan. Certain benefits — such as the ability to apply online — are available to those who already hold accounts with Bank of America.Can be a good option if:
- You have strong personal credit and at least24months in business.
- You want to build business credit.
May not be a fit if:
- You’re a startup or have a lower credit score.
- You need fast access to funds.
Fundbox
Best for startups
Fundbox offers a startup-friendly unsecured line of credit to businesses that have only been in business for
3
months and have credit scores as low as 600
. As with many online lenders, you can be funded very quickly after approval; however, you’ll also find higher interest rates, short terms and frequent payments, which can put your business at risk of default if you’re not careful.Can be a good option if:
- You need funding within a few days.
- You want to build business credit.
May not be a fit if:
- You need more than $150000in business capital.
- You don’t have the cash flow to support weekly payments.
Accion Opportunity Fund
Best for women- and minority-owned businesses
Accion Opportunity Fund is a nonprofit community development financial institution (CDFI) with a mission of providing access to capital for traditionally underserved business communities, including women and minorities. Accion offers loans up to $
250000
with competitive rates, and is a good option for business owners who can’t qualify for traditional funding, or are wary of working with traditional lenders.Can be a good option if:
- You have bad personal credit.
- You’re a women-, minority- or veteran-owned business.
May not be a fit if:
- You want funding in less than one week.
- You have less than12months in operation.
Don't be afraid to shop around for a business loan. Comparing offers from a few lenders can help you be sure you're getting the best deal possible. Here are some things to look out for when sizing up unsecured loans for your business:
- 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.
An unsecured business loan is a type of financing that doesn't require you to pledge physical collateral — like business equipment, inventory or real estate — to secure funding. But even though physical collateral isn’t required, that doesn’t mean you’ll necessarily be off the hook if you can’t repay an unsecured loan: Most are backed by either a personal guarantee or Uniform Commercial Code lien.
A personal guarantee holds you personally responsible for the debt if your business cannot pay, meaning the lender can seize your personal assets to recover its losses in the case of default.
A UCC lien gives a lender the right to seize your business assets if you’re unable to repay your loan. Lenders typically file UCC liens with your secretary of state’s office after you sign your loan agreement. Your lender may file a lien on specific assets, or it may file a blanket lien, which allows it to seize any business assets necessary to recover its losses.
You can get an unsecured business loan from banks, credit unions and online lenders. You’ll find the most competitive interest rates through banks and credit unions, while online lenders tend to have more flexible qualification requirements.
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).
Strong financials and credit often needed to get the most competitive unsecured loans.
Unsecured business funding typically works like other types of debt financing — you apply for a loan, receive funds and pay back what you’ve borrowed over time with interest.
Unsecured business loans usually fund faster than secured business loans because the lender doesn’t have to check the value of your collateral. The lack of collateral, however, also makes them riskier for lenders. That’s why unsecured loans usually come with higher interest rates and may require personal guarantees or UCC liens.
There are many different types of unsecured business funding options, including:
Business term loans
Term loans are likely what you imagine when you think of a business loan. These loans are lump sums of capital that you borrow from a lender and repay over a set period of time. Term loans can be a good option if you need to make a specific investment or purchase for your business.
Business lines of credit
Credit lines are a flexible form of financing that allow you to borrow up to a certain limit and only pay interest on the money you borrow. You then repay the funds and continue to draw on the line. Unsecured business lines of credit can be used for working capital, as well as other short-term expenses. These products are also commonly used as emergency funds.
» MORE: What is a working capital loan?
Invoice factoring
Invoice factoring lets you sell your unpaid invoices for cash advances. The factoring company takes control of your invoices and is responsible for collecting payments from your customers. Although factoring companies may want to see established invoicing practices and a certain amount of time in business, you may not have to provide a personal guarantee — since you’re selling an asset to them directly.
Merchant cash advance
With an MCA, a merchant cash advance company advances you cash based on your sales, and you repay them with a portion of your future sales. This type of financing is usually easier to qualify for than other business loans. Merchant cash advances are risky and expensive, however, and should be treated as an option of last resort.
Follow these steps to get an unsecured business loan:
1. Determine your financing needs
Consider how much funding you need and how much debt you can afford. NerdWallet’s business loan calculator can help you estimate payments and interest costs.
2. Evaluate your business’s qualifications
If you’re not securing your loan with collateral, your lender will rely more heavily on traditional business loan requirements, such as personal credit score, annual revenue and time in business.
Although online lenders often accept startups and borrowers with bad credit, these businesses may receive higher interest rates. Established businesses with good credit and strong finances will be able to access the most desirable rates and terms.
3. Compare lenders
Research different lenders to find the best choice for your business. As you compare your options, you should think about factors such as maximum loan amounts, interest rates, repayment terms and fees. You’ll also want to consider a lender’s application process, time to funding, customer service and reputation.
🤓 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
Although application requirements vary by lender, you’ll typically need to provide:
- Basic information about you and your business.
- Business and personal tax returns.
- Business and personal bank statements.
- Financial statements.
Online lenders often expedite the underwriting process by allowing you to connect your financial accounts directly to their platforms. You may be able to get a business loan from an online lender in as little as 24 hours. Banks and credit unions, on the other hand, may take several days, or even weeks.
5. Address lender questions
Sometimes, when reviewing your application, the lender will want to discuss information you’ve provided or ask for additional documents. Addressing lender questions and providing the requested information quickly can help expedite the review process.
During this time, the lender may also provide alternative loan options that you might more easily qualify for. For example, if the lender feels an unsecured loan is too risky, they may suggest you add a cosigner or that you consider a secured business loan.
6. Review loan terms
You’ll receive a business loan agreement after your application is approved. The document will contain the terms of your financing such as loan amount, interest rate, repayment period, payment amounts and schedule. It will also include the interest rate you’ll be charged and any fees that apply.
Review the agreement carefully to make sure the loan details you discussed with the lender match what’s spelled out in the agreement. If anything is unclear, speak with your lender before you commit to the loan.
Banks can give unsecured business loans, although they’ll likely be harder to qualify for than those from online lenders. National banks like Bank of America, Wells Fargo and PNC Bank all offer unsecured business funding.
It can be easy and fast to get an unsecured business loan, especially if you have good credit and strong finances. Startups and businesses with bad credit may have a more difficult time acquiring funding.
If you default on an unsecured business loan, your lender may turn the loan over to a collections agency in an attempt to recover payment. Your lender can also use the lien or personal guarantee they have in place to claim your business or personal assets to recoup their losses.
An unsecured loan for your business can help you build business credit if your lender reports payment activity to the commercial credit bureaus — and you make timely payments. If your lender reports to the commercial credit bureaus, and you don’t pay on time, however, your credit score can be negatively impacted.
Last updated on January 2, 2025
Methodology
NerdWallet’s review process evaluates and rates small-business loan products from traditional banks and online lenders. We collect over 30 data points on each lender using company websites and public documents. We may also go through a lender’s initial application flow and reach out to company representatives. NerdWallet writers and editors conduct a full fact check and update annually, but also make updates throughout the year as necessary.
To come up with our list of the best startup business loans, we selected lenders with a minimum time in business requirement of one year or less.
Our star ratings award points to lenders that offer small-business friendly features, including:
- Transparency of rates and terms.
- Flexible payment options.
- Fast funding times.
- Accessible customer service.
- Reporting of payments to business credit bureaus.
- Responsible lending practices.
We weigh these factors based on our assessment of which are the most important to small-business owners and how meaningfully they impact borrowers’ experiences.
NerdWallet does not receive compensation for our star ratings. Read more about our ratings methodology for small-business loans and our editorial guidelines.
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.
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