Skip to Main Content

Best unsecured business loans in July 2024

Jun 12, 2024
Bankrate logo The Bankrate promise
At Bankrate we strive to help you make smarter financial decisions. While we adhere to strict editoral integritythis post may contain references to products from our partners. Here's an explanation for how we make money.

Unsecured business loans provide business owners with financing based on creditworthiness and business credentials. The best part about these loans is that no personal or business collateral is required to secure the loan. This is helpful if you don’t have assets to pledge as collateral or don’t want to risk offering up an asset that a lender can claim if you default on the loan.

Unsecured business loans have a number of benefits, including fast funding compared to secured loans since you don’t have to wait for an asset to be appraised. But business loans without collateral have drawbacks. For example, higher interest rates make them more expensive than secured business loans since the lender takes on more risk. 

To learn more, check out our picks for the best unsecured business loans, tips for finding the best loan for you and alternatives in case an unsecured loan isn’t right for you.


Filter results

Close X

Best for fast funding


Loan amount
$5k- $250K
Term: 6 - 12 months
Interest rate
Starting at 6.20%
Fastest funding
1 business day
Apply nowArrow Right


Best for loan variety


Loan amount
$25k- $5M
Term: 6 - 300 months
Interest rate
Starting at 7.99%
Fastest funding
1 business day
Read our reviewArrow Right

on Bankrate


Loan amount
$5k- $250K
Term: 18 - 24 months
Interest rate
Starting at 29.90% APR
Fastest funding
1 business day
Apply nowArrow Right


Best for short-term loans


Loan amount
$1k- $150K
Term: 3 - 6 months
Interest rate
Starting at 4.66%
Weekly fee
Fastest funding
1 business day
Apply nowArrow Right


Best for early payoff discount


Loan amount
$10k- $500K
Term: 4 - 18 months
Interest rate
Factor Rates Starting at 1.1%
Fastest funding
1 business day
Apply nowArrow Right

on partner site

Best for Preferred Rewards members


Loan amount
$10k- $200K
Term: 12 - 60 months
Interest rate
Starting at 6.75%
Fastest funding
Not disclosed

Best for earning rewards


Loan amount
$10k- $150K
Interest rate
10.00- 18.00%
Fastest funding
Not disclosed

Compare the best unsecured business loans in July 2024

Use the table below to compare the best unsecured business lenders, what they’re best for, their FICO score and time in business requirement and loan amounts. 

Fast funding 625 Up to $250,000 24 months
Loan variety 600 $10,000 to $5 million 24 months
Line of credit 625 $5,000 to $250,000 12 months
Short-term loans 600 Up to $150,000 6 months
Preferred Rewards members 700 $10,000 and up 24 months
Earning rewards 680 $5,000 to $150,000 24 months

A closer look at our top unsecured business loans

In the section below, we’ll explore the 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. Our 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.

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 high limits range from $10,000 to $10 million, 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 $100,000 in revenue. 

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. 

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 six months in business, a 600 personal credit score and $100,000 in annual revenue.

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.

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. 

What is an unsecured small business loan?

A small business loan is a form of financing used by business owners to cover expenses that help you start, run or grow your business. This may include purchasing inventory or equipment, covering cash-flow issues or even consolidating business debt

Loans for business owners can be secured or unsecured. A secured business loan requires business collateral, which is an asset or assets you agree to hand over if you fail to pay back the loan. 

With unsecured loans, you don’t have to provide any assets to secure the loan. 

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 650 to get approved.
  • Industry. Some lenders refuse to lend to companies in certain industries like gambling or try to avoid loans in high-risk industries.

How do unsecured business loans work? 

Since unsecured business loans don’t require you to put your business or other assets up for collateral, it’s a more low-risk option for borrowers but not 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 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 to help pay off the debt.

Average unsecured business loan rates

Unsecured business loans offer interest rates spanning anywhere from 7 percent to 99 percent. Interest rates differ widely based on your creditworthiness and the type of loan you’re getting. If you have decent credit, you can expect interest rates to stay on the lower end of this range. 

For example, a business line of credit from a traditional bank stays in the range of a 7.5 percent to 19 percent APR (annual percentage rate). But a merchant cash advance is known for skyrocketing rates, charging factor rates and fees that convert to 30 percent to 99 percent APRs. 

Types of unsecured business loans

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

Pros and cons of unsecured business loans

Business loans without collateral have advantages and disadvantages.


  • No collateral: No need to offer your business, equipment or real estate as collateral 
  • Potentially fast funding: Faster application process since you don't have to wait for assets to get appraised
  • Accessible to a variety of borrowers: Some types of unsecured business loans are accessible even with bad credit


  • 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

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.

Where to get an unsecured business loan

You can get unsecured business loans from a variety of different sources.

One popular option is to look at an online lender. These lenders often offer faster approvals and are more flexible with their eligibility requirements. But costs can be quite high, repayment terms short and loan limits low.

Banks and credit unions are another popular source of unsecured business loans. The application and funding process may take longer, and the lenders may be more picky about who they approve. But companies with strong credit are usually eligible for the best rates and large loans.

How to manage an unsecured business loan

Once you sign on the dotted lines, you now have the task of managing payments to keep your unsecured business loan and credit in good standing. Follow these steps to make sure you can manage your loan effectively.

  1. Read the loan agreement carefully to make sure you understand the payment schedule, fees, and terms to watch out for.
  2. Build and follow a budget that will let your company afford the payments.
  3. Pay your bills on time. Consider paying more than the minimum to reduce the overall cost of the loan.
  4. Avoid applying for new debt unnecessarily. Only get loans when they will help grow your business.
  5. Contact your lender as soon as possible if you’re facing financial difficulties.

Bankrate Insight

Before you apply for an unsecured business loan, watch out for these red flags.

  • Application fees. Avoid lenders that ask for an upfront fee just to apply for a loan. There’s a good chance the lender will take the money and disappear.
  • Early repayment fees. Some lenders will try to make you pay a penalty if you decide to pay the loan off ahead of schedule. Where possible, apply for a loan from a lender that doesn’t charge this fee.
  • Time pressure. Walk away from any lender that’s trying to pressure you to act immediately without taking time to think about the loan.
  • Unusual funding or payment methods. Be wary of lenders promising to fund your loan or asking for payment in forms like gift cards or cryptocurrency.

Frequently asked questions about unsecured business loans

How to choose the best unsecured business loan lenders

Bankrate's trusted small business loan industry expertise


years in business


lenders reviewed


loan features weighed


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: