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Best Unsecured Business Loans to Get In 2022

A small business may need an unsecured business loan to pay for operating expenses, open a second location, or pay for marketing costs. If you’re in need of extra capital, take a look at these best unsecured business loans to get started today.

Best Unsecured Business Loans
Allison Bethell
Real Estate Expert

Reviewed by: Sarah Brooks, Personal Finance Writer and Editor

Fact Checked by: Dr. JeFreda R. Brown, DBA, CFEI, and a highly respected financial expert


Many or all of the products featured here are from our partners who compensate us. This may affect which companies we write about and where the company appears on a page. However, any analyses, or reviews expressed in this article are those of the author’s alone, and have not been approved or endorsed by any partner.

Unsecured business loans are small business loans that do not require any collateral. Instead, they are issued based on creditworthiness, length in business, and monthly revenue. A business may choose to get an unsecured business loan if they don’t qualify for a bank loan or  need access to funds quickly. 

Unsecured business loans can be used to quickly expand, make repairs, or renovate their place of business. They are also used to meet payroll expenses, pay for marketing costs, and to cover emergency expenses that they can’t otherwise afford. Online lenders typically offer the best unsecured business loans, and our team of financial experts reviewed and ranked the top online lenders to help you get funded.

Best Unsecured Business Loans to Get In 2022

Top Picks for Best Unsecured Business Loans

With so many unsecured business loans available, choosing the best one for your business can be tricky and time-consuming. Luckily, our team of experts did the work for you. They reviewed the best practices for choosing unsecured business loans, and used the following factors to rank the lenders that offer the best unsecured business loans.


Best Unsecured Business Loans for 2022 - Full Overview

1. Fundbox - Best Unsecured Business Loan for Startups


Fundbox offers two types of unsecured business loans: a line of credit and a term loan. The application process for both can be done entirely online and requires minimal documentation. There are no prepayment penalties, no origination fees, and flexible repayment terms. The qualification requirements are some of the lowest you’ll see out there, making them an excellent choice for both startup businesses and those that have less-than-ideal credit scores.

Soft credit pull during application
Flexing payment plans
Low minimum credit score requirement
Low loan limit
Only two loan types
No long term loans

A term loan from Fundbox gives you one lump sum of cash that you repay over 24 or 52 weeks. Rates start at 8.33% for 24 week terms and you can borrow up to $150,000. A line of credit, on the other hand, is a revolving type of loan where you only use what you need. Repayment terms are 12 to 24 weeks from each draw, with rates starting at 4.66% for 12 week terms. Lines of credit range from $1,000 to $150,000.

To qualify for a term loan or line of credit from Fundbox, you’ll need to be in business for at least six months and have a minimum credit score of 600. You’ll also need to show $100,000 or more in annual business revenue.

The Bottom Line

If you need a relatively small amount of capital quickly or you’re a relatively new business, Fundbox is a good option. Their application is quick and easy, and you’ll receive a funding decision within minutes of applying.

Try Fundbox

2. Biz2Credit - Best for Multiple Lending Products


Biz2Credit offers term loans up to $500,000, in addition to a multitude of other lending products. The company is set up as a lending platform, so you’ll fill out an application and then be matched to the best lender for your specific small business. Different lenders and loan types have different borrower requirements and qualifications.

Fast funding
Higher loan limits
Multiple loan types available
Excellent customer service
Additional fees may apply
Not available in every state
High annual revenue requirements

Biz2Credit offers term loans up to $500,000, working capital loans up to $2 million or more, and commercial real estate loans up to $6 million. Interest rates start at 7.99% and there are interest-only options available for 36 months for qualified buyers. 

To qualify for an unsecured term loan from Biz2Credit, you’ll need to be in business for at least 18 months, have a minimum annual revenue of $250,000, and have a credit score of 660 or higher.

The Bottom Line

Biz2Credit is a good choice for those that need high loan amounts, fixed interest rates, and a fast turnaround time. However, you do need to be in business at least 18 months and have high annual revenues, so keep that in mind before filling out an application.

Try Biz2Credit

3. Bluevine - Best for Unsecured Line of Credit


Bluevine offers one type of unsecured business loan: a line of credit up to $250,000. You can apply online and get an approval decision in as fast as five minutes. Instead of getting a lump sum, you get a revolving line of credit that acts similar to a credit card. Use what you need, pay interest only on what you use, and then use it again.

Low fees
Easy application
Excellent customer support
Only one loan type
Short repayment terms
Not available in every state

Bluevine offers unsecured lines of credit up to $250,000 with rates starting at just 4.8%. Payments are made weekly or monthly over six or 12 months with each draw. Once you pay back the line of credit, you can use it again, making it ideal for businesses who need continuous access to capital.

In order to qualify for a line of credit from Bluevine, you need a minimum credit score of 625, at least six months in business, and at least $10,000 in monthly revenue. There are no prepayment fees, origination fees, or maintenance fees associated with the loan.

The Bottom Line

Bluevine offers low interest rates on its unsecured business lines of credit. It has a fast application process and you only pay interest on the funds you use. Bluevine is an ideal choice for borrowers looking to pay for operating costs, fund an expansion project, or pay for marketing expenses.

Try BlueVine

4. National Funding - Best for Customized Loans

National Funding

National Funding takes a more custom approach to lending. It tailors its unsecured business loans to the individual business’ needs rather than offering general loans. It looks at more than just credit score and even has specific loans for certain industries. National Funding offers automatic payments and you work with a loan specialist to help with your application and any questions that may arise.

Funding in as little as 24 hours
Early repayment discounts
Customized loan options
Daily or weekly repayments
Personal guarantee required

National Funding offers unsecured business loans from $5,000 to $500,000. Terms range from four months to two years and payments are made daily or weekly. Once approved, funding takes place in just 24 hours.

To qualify for a small business loan from National Funding, you will need a credit score of 600 or higher and be in business for at least six months. Minimum revenue requirements are $250,000 per year or more.

The Bottom Line

National Funding is a good option for unsecured loans because it customizes your loan to your business’ needs and doesn’t just offer cookie cutter loan products. They also offer an easy application and fast funding times, making them ideal for businesses in need of capital as soon as possible.

5. OnDeck - Best for Fast Funding


OnDeck offers two types of loans for businesses that want to get unsecured business loans: a term loan and a line of credit. The application process can be completed online or over the phone. U.S. based loan specialists are available to help borrowers six days per week. The company rewards its repeat borrowers by offering lower rates and waiving some of the fees when they pay off their first loan and get a second one.

Fast funding
Dedicated customer service agents
Builds business credit
Low Maximum loan amount
Payments made daily or weekly
Longer time in business requirement

OnDeck offers term loans from $5,000 to $250,000 and lines of credit from $6,000 to $100,000. Repayment terms are 24 months for term loans and 12 months for lines of credit. Because OnDeck reports to the three major credit bureaus, a loan or line of credit from them can help build your business credit.

To qualify for a loan of line of credit from OnDeck, you’ll need a minimum credit score of 600 and you must be in business for at least one year. You also need $100,000 in annual revenue and a business checking account. Funding is quick and can happen as fast as the same day the application is approved. 

The Bottom Line

OnDeck is a good option if you need a fast unsecured business loan. It has a simple application process, funds quickly, and has dedicated loan specialists to help you throughout the process. And since they waive fees for repeat customers, OnDeck is ideal for businesses who predict future borrowing needs.

Try OnDeck

6. Credibly - Best Unsecured Business Loan for Low Credit


Credibly is both a direct lender and a loan marketplace, giving you a one-stop shopping experience to compare and contrast unsecured business loans. It offers a plethora of loan products, including SBA loans, term loans, and unsecured lines of credit. The company works with borrowers with a range of credit scores, and focuses more on the borrower’s overall credit profile and what they need the loan for rather than just their credit score.

Low credit score requirement
Discount if you pay loan off early
Streamlined application process
Not for startups
Short repayment terms
High interest rates

Credibly offers working capital loans up to $400,000 with terms up to 18 months. Repayments are made daily or weekly, and factor rates start at 1.09. Credibly’s unsecured lines of credit are up to $250,000 with rates as low as 4.8%. The company also offers SBA loans, which are backed by the Small Business Administration. These loans typically come with better rates, but they do require additional paperwork and have a longer funding time.

Credibly doesn’t have any strict credit score requirements, but generally accepts borrowers with a minimum credit score of 500. Additional lending requirements include being in business for six months and having annual revenue of $180,000 or more. The company also offers discounts for paying your loan off early. 

The Bottom Line

Credibly is a good option for unsecured business loans because of the variety of loan types and low minimum credit score requirement. Whether you need a small loan to cover operating expenses or a large loan to cover renovations, Credibly can find a loan to fit your needs.

Try Credibly

7. Fora Financial - Best for Easy Application

Fora Financial

Fora Financial offers flexible funding solutions up to $750,000 to borrowers who are looking for unsecured business loans. The online application is easy, and you can be approved in as little as 24 hours and funded within 72 hours. Credit score isn’t as important with Fora, and instead the company looks at your annual revenue and your length in business to make their lending decision.

Easy application
Industry-specific loan products
Loans up to $750,000
No long term loans
Interest rates may be high
Not available if you have a bankruptcy

Fora Financial loan amounts range from $5,000 to $750,000 with terms from four to 15 months. Payments are made monthly and rates will vary. To find out specific rates, we recommend reaching out to a Fora specialist before agreeing to the loan.

In order to qualify for a Fora Financial unsecured loan, you need to be in business for at least six months, have no open bankruptcies, and have at least $144,000 in annual revenue.  There are no minimum credit score requirements disclosed and they consider your entire credit profile as opposed to just your score. 

The Bottom Line

Fora Financial is a good choice if you’re in search of an easy application for an unsecured business loan and perhaps don’t have the best of credit. Fora offers decent loan amounts, lenient time in business requirements, and funding within 72 hours of loan approval.

8. Fundera - Best in Customer Service


Fundera is your one-stop shop for all your small business financing needs. This company is an online loan marketplace with a stellar industry reputation and various loan products to choose from. The most common loan for borrowers who don’t have collateral is a business line of credit. The company uses an online application and matches borrowers with loans that best suit their needs.

High loan limits
One application for multiple loans
Extra services offered
Excellent customer service
Eligibility requirements vary
Additional fees may be charged


Whether you’re a brand new business or have been in business for decades but have a low credit score, Fundera can find an unsecured business loan that will work for you. Rates, terms, and borrower requirements vary, due to the multitude of lenders and loan products to choose from. For term loans, though, you can expect to receive up to $600,000 with a 1-5 year repayment period. Rates vary by lender, but they do typically range from 7 - 30%.

Generally, you will need a credit score of at least 550 to qualify for an unsecured business loan. Lenders like to see an annual revenue of $50,000 and six months in business, but these numbers are not set in stone.

The Bottom Line

Fundera is a convenient option to check out multiple unsecured business loans side by side. It has an easy-to-use website and high loan limits, which are attractive if you need a larger loan than other companies offer.

Try Fundera

How to Choose the Best Unsecured Business Loan

  • Loan Features - Loan amounts and terms vary from lender to lender. We made sure to include a variety of options to make sure your small business gets the financing it needs.
  • Application process - We looked at how long the application process takes, along with whether a hard or soft pull is done on your credit.
  • Interest rates and fees - Unsecured business loans often have higher rates than secured loans due to their risk level. We looked at interest rates and origination fees, along with whether or not there was a penalty for paying off the loan early.
  • Qualification process - Different lenders have different qualification requirements, including minimum credit scores, monthly or annual revenue amounts, and total length in business.
  • Customer support - If you have a question, how will the lender answer it? What are their business hours and what kind of multi-channel support do they offer? We looked for lenders with excellent customer service support ratings that are easy to get ahold of.
  • Online user reviews - We spent some time reading independent review sites like Trustpilot to see what users have to say about the business overall. For example, does customer service offer helpful support and are the fees transparent?
  • Perks and Bonuses - What extras does the company offer for being a borrower? We considered specified service offerings like payment flexibility, advertising transparency, and advanced technology.

Best Unsecured Business Loans - Main Features

CompanyMin. Credit ScoreMin. Time in BusinessMin. Annual RevenueLoan AmountInterest Rate
Fundbox6006 months$100,000Up to $150,0004.66% for 12 week terms
Biz2Credit66018 months$250,000Up to $500,0007.99%+
Bluevine6256 months$120,000$5,000 - $250,0004.8%+
OnDeck6001 year$100,000$6,000 - $250,000Varies
Credibly5003 years$180,000$400,0009.99%+
Fora FinancialNone disclosed6 months$144,000$5,000 - $750,000Varies
National Funding6006 months$250,000$5,000 - $500,000Varies
Fundera550VariesVaries$10,000 - $1 million7%+

What Is an Unsecured Business Loan?

Unsecured business loans are a type of funding that requires no collateral to borrow. The provider will loan you a lump sum of money, usually at a fixed rate of interest, which you’ll typically pay back over a period of one to five years.

Lenders also offer unsecured lines of credit. Rather than receiving one lump sum like you would with a term loan, you receive access to a revolving line of credit. With this type of funding, you only pay interest on the amount you borrow.

Many online lenders provide simple applications and quick decisions, with funding for approved loans provided in as little as 24 hours. If you have a good credit score, you can find reasonable rates, but options do exist for those with poor credit, too.

Types of Unsecured Small Business Loans

There are many different types of unsecured business loans, including:

  • Term loans: These are the most well-known types of loans. You borrow a specified amount of money with the promise to pay it back over a set period of time, referred to as the term of the loan. You receive the money in one lump sum and payments are made regularly, usually monthly.
  • Business lines of credit: These are lines of credit specifically for a business instead of a house. They function similarly to credit cards. You qualify for a certain amount of money and can withdraw it as you need it throughout the set draw period. You only pay interest on the money you actually use.
  • Merchant cash advances: This is a type of unsecured business loan for businesses that have debit and/or credit card sales. The lender loans the business money as a lump sum and then gets repaid through future sales. Normally, the lender will automatically take their payments from your account either daily, weekly, or bi-weekly.
  • Invoice factoring: A business sells their outstanding invoices to a factoring company for a lump sum, which is a percentage of the invoices. The company gives you funds quickly so you don’t have to wait on your customers to pay their invoices.


How Unsecured Business Loans Work

An unsecured small business loan is one of the simplest and most flexible ways to raise capital. The absence of a collateral pledge simplifies the application process.

The way unsecured business loans work is straightforward. Once a business has determined how much they need to borrow, it’s a question of looking at the monthly payments that will be required.

There’s some flexibility here, especially with regard to the term. By structuring the loan over a longer term, the monthly payment can be reduced. However, the longer the term, the higher the total interest cost you’ll incur on the debt.

How to Get an Unsecured Business Loan

One of the best things about unsecured small business loans is how easy it is to apply for them. The first thing to do is to look around for the best small business loans available. Generally, these will be the ones with the lowest interest rates, but other criteria can apply.

Once you’ve assessed your options and applied, you’ll need to provide documentation. Documentation typically includes, but is not limited to:

  • Business tax returns
  • Bank statements from the previous few months
  • Personal financial information
  • Income statement
  • Balance sheet

After everything has been checked and approved, the money will be released within 24-72 hours of loan approval.

Here is exactly what it takes to get a business loan

How to Prevent Mistakes when Applying for Unsecured Business Loans

  • Have a clear business plan - A business plan serves many critical purposes. Beyond facilitating financing arrangements, it serves to guide your business and inform your strategic and financial decisions.
  • Have a purpose for your funding - Don’t borrow for the sake of it. Make sure you have a specific reason to apply for a loan. This will help you get approved and ensure you’re spending cash in a sensible manner.
  • Always be honest in your application - Don’t try to inflate your financial performance in the hopes of securing more funding. Always be honest, and maintain a prudent debt load.
  • Don’t apply last-minute - Unless it’s an emergency, you should apply for funding well in advance of needing it. Some applications can take longer than expected; applying early means you won’t be left hanging.

Unsecured Business Loans Pros and Cons


  • Short application process - Since you’re not securing your loan against any assets, the application process is usually quite straightforward. Simply complete an online form and provide the relevant documentation. If you’ve been approved, you could receive funding that very same day.
  • Less risky than other types of lending - If you default on your payments, none of your business assets will be seized. Of course, you’re still obligated to repay the debt, but you won’t lose any vital business equipment.
  • Build credit history - Borrowers with poor credit can use low-dollar, short-term, unsecured lending to boost their credit scores.
  • Flexible borrowing values - Since unsecured loans aren’t constrained by the value of an asset, you can often find very flexible borrowing limits, assuming you satisfy key criteria.


  • Higher interest rates - Without any collateral to back the loan, the lender is taking greater risk. This usually translates into higher interest rates.
  • Can be hard to qualify - Lenders usually only approve applicants with good credit and a history of strong business performance. However, with a little shopping around, you can find some poor credit options.

Final Thoughts

Unsecured loans are a great way to take your business to the next level. If you need financing to pay wages, cover operating expenses, or expand your business, an unsecured small business loan can help. Online lenders, such as the ones mentioned above, provide easy applications and fast funding times, giving you the cash you need as quickly as possible.

Frequently Asked Questions(FAQ)

What are the minimum requirements to apply for an unsecured business loan?

Every lender will have slightly different requirements. However, most lenders want to see you’ve been in business for at least six months, have a minimum credit score of 600, and make $10,000 per month in revenue. These are not hard numbers, so it’s best to apply for a few lenders and compare your options.

What is the interest rate on an unsecured business loan?
How much can I borrow?

The amount you can borrow depends on your profits, how well established your business is, your credit scores, and more. You can borrow as much as $500,000 if you have a history of good finances.

How long do I wait for funding after being approved?

Once approved, funds can be dispersed in as little as 24 hours. Some lenders may take up to 72 hours, but overall funding is quick once approved.

Can I repay back early?

You might reduce your debt sooner and save on interest when you repay your loan early. However, it means that the lender receives less money. To make up for this, certain lenders implement early repayment fees. Other lenders, though, offer discounts for paying your loan off early.

How long does it take to get a business loan approved?

Most online lenders will give you an approval decision in a matter of hours. Lenders will typically want to see bank statements prior to making a decision, so make sure you have those handy when applying.

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About the Author

Allison Bethell

Written by: Allison Bethell

Real Estate Expert

Allison Bethell is a content writer, real estate investor, small business owner, and consultant. She has a B.A. from Villanova University in Sociology and Business. She also holds several graduate certificates in early childhood development, screenwriting, and contract law.

More about me
Sarah Brooks

Reviewed by: Sarah Brooks

Personal Finance Writer and Editor

Sarah Brooks is a personal finance writer and editor with more than 10 years of experience. She specializes in personal and business loans, mortgages, auto loans, and credit cards.

More about me
Dr. JeFreda R. Brown

Fact checked by: Dr. JeFreda R. Brown

DBA, CFEI and a highly respected expert in personal and business finance

Dr. JeFreda R. Brown is more than a financial consultant: she’s an avid teacher and subject matter expert who helps people—individuals and groups in a business setting—master the skills they need to achieve lasting financial wellbeing. As Founder and CEO of Xaris Financial Enterprises, it is her passion and life goal to help others develop and maintain financial wellness.

More about me