How much money can I borrow with bad credit?

How much money you can borrow will depend on the lenders you choose, what kind of bad credit loan you choose and if the lender considers other factors beyond credit. However, loans typically range from $2,000 to $35,000.

How do I improve my credit to get a better loan?

The best way to get a more favorable APR or be approved by more lenders is to raise your credit score. You can do that by showing you are responsible with credit like by making payments on time and reducing your debt-to-income ratio and credit utilization.

Can I get a loan with no credit check?

It is possible to get a no-credit-check loan, however many of these options can be predatory or how extremely high interest rates and fees. You will likely find much better loan terms that don't put you at risk of debt you can't get out of if you search for lenders that accept borrowers with bad credit instead.

What are the risks of a bad credit loan?

Like any loan, you will spend more money over the lifetime of the loan than you borrow. With bad credit loans, you will likely have higher interest rates than you would with higher credit. You may find it harder to pay back the loan plus interest or to get out of debt. However, if you manage your loan and other finances well, a bad credit loan may only be as risky as any other type of credit you use.

What is the easiest type of loan to get with bad credit?

The easiest types of loans to get with bad credit are personal installment loans and payday loans. However, be wary of payday loans as they typically come with steep interest rates.

What companies will give you a loan with bad credit?

There are many lenders out there that work with borrowers with bad credit, many of which are outlined in the list above. These companies typically consider factors other than your credit score, including income, payment history and employment history.

Can I get a loan with a 550 credit score?

While most lenders require a minimum credit score of 600 or higher, there are lenders that work with borrowers who have a 550 credit score. One notable example is Avant. However, you are unlikely to qualify for a lender’s lowest rates.

Best unsecured business loans in May 2025

Written by

TJ Porter

Edited by

Rob Watts

Reviewed by

Chloe Moore, CFP®

Updated: Apr.1, 2025

What to know first: Unsecured business loans can get you quick funding without the need for collateral. Since unsecured business loans don’t require collateral, you can get fast funding without putting your house or equipment on the line – at the cost of higher interest rates and tougher approval terms. Here are Bankrate’s top, expert-backed picks for unsecured business loans.

Get started on funding your business today

Answer a few questions and get matched with trusted financing solutions from our sponsored partner.

Bluevine: Best for fast funding

4.4

Bankrate Review

Loan amount

$5k-$250K

Term: 6 - 12 months

Interest rate

Starting at 7.80%

Fastest funding

1 business day

Apply now

on BusinessLoans.com

Pros
- Fast funding time
- Open to fair-credit borrowers
- Minimal fees
Cons
- High annual revenue requirement
- Short repayment terms
- Unavailable in three states
What to know
The minimum annual revenue requirement is steep compared to other lenders. Lines of credit aren’t available in Nevada, North Dakota or South Dakota. You’ll need to be registered as a corporation or LLC and not have any bankruptcies in the last 3 years.
Business credit score:
N/A
Personal credit score:
625
Personal guarantee requirement?:
No
Minimum time in business requirement:2 years
Minimum business annual revenue:$480,000

Fundbox: Best for short-term loans

4.3

Bankrate Review

Loan amount

$1k-$150K

Term: 3 - 6 months

Interest rate

Starting at 4.66%

Weekly fee

Fastest funding

1 business day

Apply now

on BusinessLoans.com

Pros
- Funds available quickly
- Low minimum credit score requirement
- Available to newer companies
Cons
- Low maximum loan limit
- Repayment periods are short
- Can’t build business credit
Personal guarantees are required from all owners with at least a 25-percent stake. Repayment terms are 12 or 24 weeks, which is short compared to other lenders. But the application process is quick and can be done directly from the Fundbox app.
Business credit score:
N/A
Personal credit score:
600
Personal guarantee requirement?:
No
Minimum time in business requirement:6 months
Minimum business annual revenue:$100,000

Bank of America: Best for Preferred Rewards members

4.3

Bankrate Review

Loan amount

$10k-$200K

Term: 12 - 60 months

Interest rate

Starting at 8.50%

Fastest funding

Not disclosed

Read our review

on Bankrate

Pros
- Plenty of loan options
- Low interest rates
- Free business credit report
Cons
- Limited options if you have poor credit
- Limited information on website
- Slow application process
What to know
Bank of America offers a variety of products, including term loans, SBA loans and lines of credit. There’s even a cash secured line of credit for credit builders. You can apply online for Bank of America loans if you have a Small Business Online Banking login. Everyone else will have to make an appointment to connect with a specialist.
Business credit score:
N/A
Personal credit score:
700
Personal guarantee requirement?:
No
Minimum time in business requirement:2 years
Minimum business annual revenue:$100,000

Wells Fargo Business: Bankrate 2025 Award Winner Best small business lender for good-to-excellent credit

4.2

Bankrate Review

Loan amount

$10k-$150K

Interest rate

10.00- 18.00%

Fastest funding

Not disclosed

Read our review

on Bankrate

Pros
- Multiple lines of credit
- Low interest rates
- No collateral needed
Cons
- 680 credit score typically required
- $100,000 limit for online applications
- High annual fee for high-limit lines
What to know
Wells Fargo BusinessLine® line of credit has loan amounts of $10,000 to $150,000 and requires at least 2 years in business. The Wells Fargo Small Business Advantage line of credit charges no annual fee, has limits of $5,000 to $50,000 and is available to businesses younger than two years.
Business credit score:
N/A
Personal credit score:
680
Personal guarantee requirement?:
No
Minimum time in business requirement:2 years
Minimum business annual revenue:N/A

SMB Compass: Best for loan variety

4.4

Bankrate Review

Loan amount

$10k-$5M

Term: 6 - 6 months

Interest rate

Starting at 7.99%

Fastest funding

1 business day

Read our review

on Bankrate

Pros
- Offers nine types of business loans
- Fast funds and long repayment terms
- High maximum loan limits
Cons
- Steep revenue requirement for term loans
- Some options take a week to fund
- Factor rates may apply to some loans
What to know
Terms vary by loan product. Term loans have strict eligibility requirements, including a 680 credit score and an annual revenue of $500,000. But lines of credit only need a 600 credit score and $100,000 in annual revenue. Options are also available for businesses with a credit score of 550. A closing fee of 1% to 3% applies to most loan types.
Business credit score:
N/A
Personal credit score:
600
Personal guarantee requirement?:
No
Minimum time in business requirement:6 months
Minimum business annual revenue:$300,000

OnDeck: Bankrate 2025 Award Winner Best lender for startups

4.5

Bankrate Review

Loan amount

$6k-$100K

Term: 12 - 24 months

Interest rate

Starting at 35.90% APR

Fastest funding

1 business day

Apply now

on BusinessLoans.com

Pros
- Same-day funding
- Reports to credit bureaus
- Open to fair credit borrowers
Cons
- High annual percentage rates (APRs)
- Not available in all 50 states
- Loan origination fees
OnDeck’s business lines of credit have an average interest rate of 55.90% and repayment terms of 24 months. Restricted industries include adult entertainment, art dealers, firearms vendors and mortgage and nonmortgage loan brokers. There’s an origination fee of up to 4%. You may also be required to make a minimum draw of $1,000 at origination.
Funding isn't available in North Dakota.
Business credit score:
N/A
Personal credit score:
625
Personal guarantee requirement?:
Yes
Minimum time in business requirement:1 year
Minimum business annual revenue:$100,000

On This Page

A closer look at Bankrate's top unsecured business loans

In the section below, we’ll explore Bankrate’s pick of lenders featured in the table more thoroughly. If your business meets the requirements of several lenders, looking closer at each can help you make the right decision. Bankrate’s closer look provides more information about each lender, why we chose its superlative and any standout features of the lender.

Bluevine: Best for fast funding

Overview: Bluevine’s specialty lands in its business line of credit, offering credit limits up to $250,000. It caters to established businesses with strong revenue of at least $480,000 per year and two years in business.

While these requirements are high, the lender keeps low credit standards, starting at a 625 personal credit score. You’d be hard-pressed to find credit requirements at that level with a traditional bank business line of credit. Bluevine also offers business checking accounts for the added convenience of keeping your business finances in one place. You can also borrow up to $250,000 with a business term loan from one of Bluevine’s partners.

Bluevine is best for fast funding because you can get an approval decision in as little as five minutes and funding in as little as one day. It also advertises no monthly fees and on-demand access to a revolving line of credit. Loans can be managed through an online dashboard, keeping the funding process simple and speedy when you need to make a withdrawal.
- Founded in 2013
- Online application and dashboard
- Available in 47 states
- 24-hour funding
- Minimal fees

OnDeck: Best for line of credit

Overview: OnDeck is a fintech lender that aims to help small business owners who are edged out of traditional financing. Its eligibility requirements are more relaxed than many lenders, making it easier for business owners with bad credit to qualify for a term loan or business line of credit. You can qualify for a loan through OnDeck with fair personal credit, one year in business and $100,000 in annual revenue.

OnDeck is best for borrowers looking for a line of credit with flexible repayments and easy access. The line of credit is entirely online and doesn’t have draw fees. You also get multiple repayment options of 12, 18 or 24 months and weekly or monthly payments. These help you pay back the loan on a timeline that works best for you. Many lines of credit offer only one or two repayment options.
- Founded in 2006
- Online application
- Available in 49 states
- Accepts fair credit

Fundbox: Best for short-term loans

Overview: Fundbox centers its lending on its short-term line of credit product. It helps businesses get fast funding within one business day and offers a handy online dashboard and app to manage your account. Fundbox also stands out among lenders with lenient requirements for its line of credit. You can apply with just three months in business, a 600 personal credit score and $100,000 in annual revenue.

Fundbox is best for borrowers who are seeking relatively small funding amounts quickly. Since fees are weekly and potentially high compared to other credit lines, it’s best for borrowers who know they can repay the loan within the repayment period or sooner, as there aren’t any prepayment penalties.
- Founded in 2013
- Online application
- Available in 50 states
- No prepayment penalties
- Inc. 5000 honoree

Bank of America: Best for Preferred Rewards members

Overview: Bank of America offers a suite of lending products for small businesses, including term loans, lines of credit and several secured financing options. Many lenders specialize in two to three business products, but Bank of America can grow with your business’s lending needs over time. This national bank also keeps branches located all across the country, providing you with personalized, face-to-face support.

Bank of America is best for borrowers who are already Bank of America customers and enrolled or eligible for Preferred Rewards. Preferred Reward members can receive an interest rate discount on business loans of 0.25 percent off your interest rate when applying for new business lines of credit or term loans. Preferred Rewards also offers rewards on other banking products, including higher interest on savings accounts, bonus credit card rewards and waived banking fees.
- Founded in 1948
- Available in 50 states
- Thousands of branches
- Rate discounts for preferred members

Wells Fargo: Best for earning rewards

Overview: Wells Fargo stands out as one of the largest banks in the United States, providing over a century of experience. For business lending, Wells Fargo focuses on business lines of credit and SBA loans, excelling as a top lender for both.

Wells Fargo is best for borrowers looking to earn rewards from their spending. With a business line of credit enrolled in the rewards program, you can receive one point for every dollar spent, redeemable for travel rewards, gift cards and more. It also offers 1,000 bonus points if you spend $1,000 in qualifying purchases.

Another unique feature is the line of credit Mastercard access card. This card allows you to spend directly from your business line of credit. These features make its lines of credit accessible and resemble the flexible features offered by most business credit cards.
- Founded in 1852
- Online or in-person application
- Thousands of bank branches
- Top SBA lender
- Line of credit rewards program

SMB Compass: Best for loan variety

Overview: Getting an SMB Compass business loan means getting flexible loan options and repayment terms at an affordable cost. Its loan limits range from $10,000 to $5 million, which is competitive considering that most online lenders stop short at $500,000. You can also find repayment terms from six months to 25 years. While eligibility requirements differ from loan to loan, its most accessible loans start with six months in business and $300,000 in revenue.

SMB Compass is best for loan variety because the lender offers nine business loan products, including conventional loans and alternative options. Its choices include term loans, business lines of credit, SBA loans, bridge loans and purchase order financing. This product lineup is a wider variety than the two to three offerings most online lenders have, helping you find a loan that suits your funding needs.
- Founded in 2017
- Online application
- Available in 49 states
- Alternative business loans
- High funding limits

What is an unsecured small business loan?

An unsecured business loan is a business loan that is not backed by collateral. While a secured business loan will require collateral such as real estate or business equipment be used to back the loan, with the guarantee that the lender can seize the collateral if you default on the loan, an unsecured business loan does not require you to do so.

An unsecured business loan can help you cover business expenses such as startup costs, operational expenses and equipment purchase, or allow you to grow your business.

How do unsecured business loans work?

Since unsecured small business loans don’t require you to put your business or other assets up for collateral, it’s a riskier proposition for lenders.

To prove you pose a low risk to the lender, lenders may have strict eligibility requirements for certain types of unsecured business loans. You’ll likely need good-to-excellent credit, at least two years’ time in business and a high annual revenue. In addition, the lender may charge you a higher interest rate.

In place of collateral, lenders typically require you and other business owners to sign a personal guarantee, which makes anyone who signs it personally liable for the business debt. If your business fails to repay your unsecured loan, you are legally responsible for paying it. Lenders may take you to court to seize any personal assets, such as your house or car, to help pay off the debt.

Requirements for an unsecured business loan

To qualify for most unsecured business loans, you’ll need to meet a few eligibility requirements. Common requirements include:

Revenue. Your company must earn enough money to make payments on the new loan.
Current debts. If you have too much debt and most of your revenue goes towards existing debt, lenders won’t give you a new loan that you’ll struggle to pay.
Time in business. Startups are risky, so many lenders want your company to have been operating for six months to two years before applying for a loan.
Credit score. Lenders will look at both your business and personal credit score. They may set a minimum personal credit score of 600 or higher to get approved.
Industry. Some lenders refuse to lend to companies in certain industries like gambling or refuse loans to businesses in high-risk industries.

Common documents required for an unsecured business loan include:
- Business plan
- Business license
- Employer identification number (EIN)
- Recent personal and business tax returns
- Recent bank statements
- Proof of business insurance
- Payroll records
- List of accounts payable and accounts receivable
- Business financial statements (i.e., balance sheet, profit and loss statement)

The best way to protect your finances and your credit is by ensuring that you keep your loan or credit repayment on time, maintaining strong cash flow, and avoiding excessive borrowing which creates difficulty in paying back.
Emmanuel Nyame, CEO of Twelvenets

Types of unsecured business loans

Many types of business loans are available as unsecured loans. You’re likely to encounter the following:

Term loans provide a single lump sum and have a set amount of time — from a few months up to around five years — to repay it. They’re available from large banks and smaller digital lenders alike. But they can require high annual revenue and a personal guarantee.
Microloans offer limited borrowing amounts, usually around $50,000. They’re good for small businesses trying to get off the ground but may be too limited for businesses trying to scale higher. Rates can be a bit high, too.
With business lines of credit, you have a set credit limit and draw period. These offer larger funding limits and lower rates than a business credit card. You can also borrow repeatedly up to the available credit limit or borrow again once the original borrowed amount has been paid off. You may be limited to a certain number of draws per month or year.
This alternative loan involves selling your unpaid invoices to a factoring company, which then collects the invoice on your behalf and keeps a percentage. Fees may be steep, but invoice factoring can help you cover gaps in cash flow and is an accessible option for borrowers with poor credit.
This is a type of bad credit loan, which gets calculated based on credit card sales. You repay them with a percentage of your daily or weekly sales. New businesses with less established credit may find merchant cash advances (MCAs) the best available option. But MCAs aren’t technically loans and aren’t subject to usury laws. So they may have high fees and short repayment terms, and interest rates may soar into the triple digits.

Pros and cons of unsecured business loans

Business loans without collateral have advantages and disadvantages.

Pros

No collateral: You don’t need to put business, equipment or real estate up for risk of repossession.
Potentially fast funding: Your application may be approved more quickly without the need to assess your assets.
Accessible to a variety of borrowers: Some types of unsecured small business loans are accessible even with bad credit.

Cons

Often more expensive: Lenders often charge higher fees and interest rates to compensate for their increased risk
May have strict eligibility requirements: Without collateral to secure the loan, lenders will be strict about who they approve for certain types of unsecured business loans
May require a personal guarantee: Some lenders ask you to offer a personal guarantee before approving the loan

Who should get an unsecured business loan?

You may want to consider getting an unsecured business loan if:

You don’t want or have assets to put up as collateral. This can happen if business relies mainly on inventory and you don't have any real estate or equipment to offer for collateral, or if you prefer not to put your assets at risk.
You have a good credit score and history. Lenders will often have higher credit requirements for unsecured loans.
You have a solid revenue stream. Having an established annual revenue can tell lenders how much of a weekly, monthly or quarterly payment you can afford.
You need funding fast. Unsecured loans can have shorter approval times since you don’t need to have your assets assessed.
You don’t mind a higher interest rate. Unsecured business loans often come with higher rates.

It’s important to remember that while an unsecured loan isn't backed by collateral, you still may run the risk of having your assets seized if you default on payment. This can happen if you sign a personal guarantee that backs the loan with one of your personal assets, such as your house, or if you file for certain types of bankruptcy.

Alternatives to unsecured small business loans

Unsecured loans are just one way for your company to raise money. If you’re looking for other options, consider these unsecured business loan alternatives.

If you have an asset or savings to offer as collateral, a secured business loan is a good alternative to an unsecured loan. While offering collateral increases your company’s risk, it reduces the lender’s risk. That can make it easier to qualify for a loan and help keep borrowing costs low.
Business grants are a source of free money that you can use for your business. Federal, state and local governments as well as nonprofits are popular sources of grants. Some may focus on specific types of businesses or opening a specific business in underserved areas. Other grants might focus on a specific business owner demographic like people of color, veterans or women.
Look out for grant opportunities in your area and apply for grants you might be eligible for.
Another option for your company is to use crowdfunding to raise cash.

One way to crowdfund is to pre-sell a product. Customers pay you up front and you use that cash to produce and ship a product to them. You can also try crowdfunding to raise money from people who like your company. This allows you to pay for expansion or new equipment with no expectation that the funders get something in return.
Peer-to-peer lending relies on everyday people to invest in loans. The advantage for business owners is that each person only puts in a small amount. Because individual risk is low, it can be easier to get a loan if you have poor credit.
Business credit cards are a great way to finance everyday purchases. What makes them so useful is that if you pay the bill in full when the statement period ends, you won’t pay any interest, giving your company a source of free short-term financing.

Though business credit cards might have lower limits than some unsecured loans, they also offer other perks. For example, many have cashback rewards that effectively give you a discount on your purchases.

FAQs about unsecured business loans

Unsecured loans could hurt your credit if you default on them because the lender will likely report the lack of payment to the credit bureaus. Applying for loans might also temporarily drop your credit score as the lender has to pull a credit report.
The total cost you’ll pay for an unsecured business loan includes the down payment, interest rate and any fees the lender charges. The loan interest will be the largest cost, but rates can vary widely from 7 percent to 75 percent APR based on the type of loan and your credit. Lenders may also ask you to put down 10 percent or more of the loan amount in addition to charging an origination fee, closing costs or other fees.
How you use an unsecured business loan depends on the type of loan you get. Most loans don’t include many restrictions on uses, but different loans cater to different needs. For example, unsecured term loans work well for one-time purchases. But a business line of credit can pay for small, day-to-day expenses, and it lets you tap the credit over and over again as it refreshes after you pay off previous loans.
Unsecured business loans aren’t hard to get if you meet the standard business qualifications. For most lenders, you’ll get approved if you have a strong personal credit score of 670 or higher, at least two years in business and a trajectory of growing revenue. But if you fall below these qualifications, you’ll need to find lenders willing to work with you or consider putting up collateral to boost your odds of approval.
If you miss one or two payments on an unsecured business loan, you can keep the loan in good standing by making the payments plus any interest and fees charged. But if you miss multiple payments, the loan could go into default. While an unsecured business loan isn’t tied directly to collateral, lenders can still go after your business assets through legal action if you default. You may have also signed a personal guarantee, which guarantees the loan with your personal assets if your business can’t pay.

How to chose the best unsecured business loan lenders

Bankrate's trusted small business loan industry expertise

Read our full methodology

years in business

lenders reviewed

loan features weighed

770

data points collected

To choose the best unsecured business loans, we ensured all loans featured are broadly available across the United States and require no collateral. We then considered features that make loans affordable and accessible to businesses with different characteristics and needs, including interest rates, credit score requirements, minimum annual revenue and fees.

When evaluating lenders, we use a 22-point scale to measure quality in five key areas:

Access to small business funding is a challenge for many business owners. Rate hikes and bank turmoil have led to lenders tightening credit standards and eligibility requirements. This can make it difficult for startups, bad-credit borrowers and business owners in underserved areas to get approved for small business loans.

Our experts consider several factors in this category and award higher scores to lenders that offer flexible loan amounts, fast approval and funding and inclusive time in business and annual revenue requirements.
The affordability of a business loan often depends on a business owner's financial profile. A business with high revenue and a flexible budget will likely be able to afford most loan options. Businesses considered high risk, such as startups or those with bad credit, may struggle to find loans with affordable interest rates and reasonable fees.

We consider a business loan affordable if the payments are manageable, you have the lowest possible rate based on your creditworthiness and there are minimal fees. Lenders that have lower rates, offer rate or fee discounts and have minimal fees receive higher scores.
A good customer experience requires a lender to be transparent, efficient and responsive. Reputable lenders that value their customers are easy to communicate with, responsive to your questions and concerns and willing to go the extra mile to make sure you have a positive experience for the life of the loan.

Lenders offering online accounts and applications and a range of customer support availability score higher in this category.
While the Truth in Lending Act (TILA) protects consumers against unfair or harmful lending practices, it doesn’t apply to business loans. This can make it harder to get straightforward and upfront information on loan costs when comparison shopping. We score lenders that make it easy to find rates and fees, as well as eligibility and credit score requirements, higher than those who do not disclose information.
Loan flexibility is finding a loan to meet your needs, even if you don’t have high annual revenue, several years in business or the best credit score. Loan flexibility can look like lenders that offer multiple lending products, variety in loan terms or unique options to give business owners the opportunity to fund their businesses in a way that works for them.

Lenders scoring high in this category offer varied products and services to cater to all types of borrowers and businesses.

Best unsecured business loans in May 2025

Get started on funding your business today

Bluevine: Best for fast funding

Pros and cons

Additional requirements

Fundbox: Best for short-term loans

Pros and cons

Additional requirements

Bank of America: Best for Preferred Rewards members

Pros and cons

Additional requirements

Pros and cons

Additional requirements

SMB Compass: Best for loan variety

Pros and cons

Additional requirements

Pros and cons

Additional requirements

A closer look at Bankrate's top unsecured business loans

Bluevine: Best for fast funding

Who it's for

Standout features

OnDeck: Best for line of credit

Who it's for

Standout features

Fundbox: Best for short-term loans

Who it's for

Standout features

Bank of America: Best for Preferred Rewards members

Who it's for

Standout features

Wells Fargo: Best for earning rewards

Who it's for

Standout features

SMB Compass: Best for loan variety

Who it's for

Standout features

What is an unsecured small business loan?

How do unsecured business loans work?

Requirements for an unsecured business loan

Commonly required documents

Types of unsecured business loans

Term loan

Microloan

Business line of credit

Invoice factoring

Merchant cash advance

Pros and cons of unsecured business loans

Pros

Cons

Who should get an unsecured business loan?

Alternatives to unsecured small business loans

Secured business loans

Grants

Crowdfunding

Peer-to-peer lending

Business credit cards

FAQs about unsecured business loans

Do unsecured loans hurt your credit?

How much will an unsecured business loan cost?

What can you use an unsecured business loan for?

How hard is it to get an unsecured business loan?

What happens if you don't pay an unsecured business loan?

How to chose the best unsecured business loan lenders

Bankrate's trusted small business loan industry expertise

Accessibility

Affordability

Customer experience

Transparency

Flexibility