Finimpact

Best Unsecured Business Loans

A business may need an unsecured business loan when they don’t own any real estate and don’t have any other collateral such as commercial equipment to secure the loan. These types of loans are popular with small and medium sized businesses that need extra funds.

Best Unsecured Business Loans
Allison Bethell
Written by:Allison Bethell
Real Estate Expert

A business may choose to get an unsecured business loan if they don’t qualify for a bank loan or another type of loan that requires collateral. These loans are used to quickly expand, make repairs, or renovate their place of business. Unsecured business loans are also used to meet payroll expenses, high marketing costs, and for 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.

Our Top Picks for Best Unsecured Business Loans

Fundbox review
  • No monthly fees or prepayment penalties
  • Same-day or next-day funding
  • Best for business lines of credit
Credit Score
Min. Credit Score 600+
Loan Amount
Loan Amount $5K - $150K
repayment
Loan Repayment 6-12 months
biz2credit review
  • Multiple loan types available
  • Funding in 48h
  • Soft credit pull
credit score
Min. Credit Score 600+
loan amount
Loan Amount $25K - $6M
loan repayment
Loan Repayment 12-36 months
bluevine
  • Quick and simple application
  • Competitive interest rates
  • Available to customers with relatively low credit scores
Credit Score
Min. Credit Score 600+
Loan Amount
Loan Amount $5K-$250K
loan repayment
Loan Repayment 6-12 months

How to Choose the Best Unsecured Business Loan?

We did the hard work so you don’t have to. Our team of experts went over the best practices for choosing unsecured business loans, and they use these factors to rank the lenders that offer the best unsecured business loans.

  • Loan Features: What are the terms of the loan? Meaning how long is it for? Additionally, what are the repayment options, and what are the minimum and maximum loan amounts? If you need $50,000 and the maximum loan amount is $20,000, you need to check out a different unsecured business loan.
  • Application process - Can you fill out the application online in a few minutes or is it invasive and time-consuming? Find out if the application has a hard-pull or soft-pull credit score impact. Know the approval time and the funding time, as well as any distinctively competitive offerings.
  • Interest rates and fees - Unsecured business loans often have higher rates than secured loans due to their risk level. Know what the rates are, if there are origination fees, and if a prepayment penalty is charged for paying the loan off early.
  • Qualification process - Know what the qualification requirements are so you don’t waste your time. Be aware of things like the required minimum credit score, annual revenue, and business history requirements.
  • 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? Also, see if the website has supplemental information and tools.
  • Online user reviews - Spend some time reading independent review sites like Trustpilot. Check out what users have to say about the business overall and see what the recurring themes are. 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? Consider specified service offerings like payment flexibility, advertising transparency, and advanced technology.
  • Best Unsecured Business Loans for 2022 - Full Overview


    1.Best for Flexible Credit Requirements

    Fundbox offers two types of unsecured business loans: a line of credit and a term loan. The application process for both is streamlined, can be done entirely online, and requires minimal documentation. A business checking account is required though. There are no prepayment penalties on either loan and the fees and terms are transparent. The site has example fee structures to show exactly how much the unsecured business loan is going to cost you. Unsecured business loans are typically used to invest in growth, cash flow, and emergencies.

    Pros
    Soft credit pull: No credit score impact
    Flex pay: 3 extra days to pay
    Time in business: Only 6 months
    Cons
    Low loan limit: Max $150,000
    Only two loan types
    No long term loans: Max 1 year

    The term loan from Fundbox offers 24 or 52 week repayment terms. Automatic payments can be set up and there is no loan origination fee. Lines of credit have 12 or 24 week repayment periods. A 600 minimum credit score is needed for either type of loan with at least six months of business history and $100,000 or more in annual revenue. Interest rates typically start at 10.1% and go up from there depending on credit history.

    The Bottom Line

    This lender is a good option for unsecured business loans because it has flexible credit requirements; you only need a 600 Fico score to qualify. It also has an easy application process, an online help center, and a blog with unsecured business loan information.

    Try Fundbox

    2. Biz2Credit - Best for Interest Only Options

    Biz2Credit offers two unsecured business loans including a term loan and a working capital loan. The company is set up as a lending platform so once you fill out an application, then you will be matched to the lender with the unsecured business loan that best meets your needs. Different lenders and loan types have different borrower requirements and qualifications.

    Pros
    Fast funding: 72+ hours
    Higher loan limits: Up to $500,000
    Customer service: Dedicated loan specialist
    Cons
    Lacking info: Need more loan details on site
    Loan types: Only 2 unsecured loans
    Receipts: Needed for higher loan amounts

    There are two unsecured business loan products. Both have minimum loan amounts of $25,000 and the term loan has a maximum loan amount of $500,000. The working capital loan product has a loan limit of $2 million+. Interest rates start at 7.99% and there are interest-only options available for 36 months for qualified buyers. The business needs to be in business for at least 6 months and the minimum annual revenue is $250,000.

    The Bottom Line

    This lender is a good choice for an unsecured business loan because of its interest only options which can save you money on your monthly payments. They also offer higher maximum loan amounts than some other lenders, as well as fast funding times.

    Try Biz2Credit

    3. BlueVine - Best for Low Interest Rates

    This lender offers one type of unsecured business loan in the form of a line of credit. You can apply online and get an approval decision as fast as five minutes later. No fees are charged for the money you don’t use. You get a draw period to use the funds as you need them instead of getting one lump sum.

    Pros
    Low fees: No origination fee
    Easy application: Takes about 5 minutes
    Replenish: Get more funds as you pay down
    Cons
    Loan type: Only one
    No long term loan: Max 1 year
    Low loan maximum: Max loan amount is $250,000

    BlueVine’s line of credit offers borrowers an option for an unsecured business loan. In order to qualify, you need a minimum credit score of 600, at least 6 months in business, and at least $10,000 in monthly revenue. Loan terms are for six or twelve months and as you repay the loan, you get access to more funds, which is similar to how a credit card works. The maximum loan amount offered is $250,000.

    The Bottom Line

    BlueVine offers low interest rates on its unsecured business loans. It also has a fast application process and you only pay interest on the funds you use which can be ideal if you’re using the money for a project over time such as renovating your office.

    Try BlueVine

    4. OnDeck - Best for Fast Funding

    OnDeck offers two types of loans for businesses that want to get unsecured business loans. There is a business line of credit and a term loan. 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.

    Pros
    Fast funding: Often same day
    Customer service: Dedicated loan agents
    Info on rates: Not listed on website
    cons
    Low Maximum loan amount: Only up to $250,000
    Repayment structure: May have to repay daily
    Time in business: At least one year

    A minimum credit score of 600 is required for both the business line of credit and the term loan. Additionally, you must be in business for at least one year with an open business checking account and at least $100,000 in revenue. Funding is quick and can happen as fast as the same day the application is approved. Loans range from $6,000 to $250,000.

    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.

    Try OnDeck

    5.Credibly - Best for Multiple Loan Options

    This lender is 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 and lines of credit. If you want to use the same company for an unsecured business loan and for a future commercial real estate loan, Credibly offers both. The company works with borrowers with a range of credit scores, and focuses more on the business and borrower’s overall credit profiles and what they need the loan for.

    Pros
    Low credit score requirement: 500+
    Discount: If you pay loan off early
    Application process: Streamlined
    Cons
    Time in business: 3 or more years
    Short terms: Repayment terms upto 18 months
    Variables: Rates and terms vary by loan

    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 three or more years and having annual revenue of $180,000 or more. Loan terms vary based on the loan product and rates typically start at 9.99%. The company also offers discounts for paying your loan off early which is a unique feature in this industry.

    The Bottom Line

    Credibly is a good option for unsecured business loans because it has an easy to use website with lots of different types of loans that you can compare to see which one is the best fit. They also work with borrowers with credit scores as low as 500.

    Try Credibly

    6. Fora Financial - Best for Easy Application

    Fora Financial offers flexible funding solutions to borrowers who are looking for unsecured business loans. It has an online application and you can be approved in as little as 24 hours and funding within 72 hours. Their website includes tools to track the process of your application and your loan timeline. The application is only one page long and just requires a few months of business bank statements. The company offers specific loan products tailored to different industries such as construction and restaurants.

    Pros
    Easy application: Little documentation
    Industry specific loan products: Tailor made
    Wide range of loan amounts: $5,000 - $750,000
    Cons
    No long term loans: Max is 15 months
    Website: Lacking specific loan info
    Rates: Must apply to get interest rate range

    In order to qualify for a Fora Financial unsecured loan, you need to be in business for at least 6 months, have no open bankruptcies, and have at least $144,000 in revenue. They offer early payoff discounts and a capital specialist will work with you through the application process. There aren’t any minimum credit score requirements disclosed and they consider your entire credit profile. Interest rates vary and terms are 15 months or less.

    The Bottom Line

    Fora Financial makes a good choice if you’re in search of an unsecured business loan. The application process is easy and requires little documentation. It also has a decent maximum loan amount and relatively lenient time in business requirements.

    7. National Funding - Best for Customized Loans

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

    Pros
    Wide range of loan amounts: $5,000 - $500,000
    Lenient borrower requirements overall
    Fast funding: 72 hours+
    Cons
    Unknown: Rates and terms til you apply
    Agent: Turnoff if you want to do it solo
    Revenue requirements: Not disclosed

    National Funding has fast funding times, as quick as 72 hours on most loans. Because it specializes in custom unsecured business loans, rates, terms, and other requirements all vary. However, you will need a credit score of 500 or higher and be in business for at least 6 months. Minimum revenue requirements also vary and your loan specialist will give you specifics once you apply.

    The Bottom Line

    This lender is a good option for unsecured loans because it provides dedicated customer service to each customer. In addition, it customizes your loan to your business’ needs and doesn’t just offer cookie cutter loan products.

    8. Fundera - Best for High Loan Limits

    -If you need a larger loan limit and meet their qualifications, then check out Fundera. This company is an online loan marketplace with a stellar industry reputation and various loan products to choose from. However, 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.

    Pros
    High lending limits: $1 million on some loans
    One application: for multiple loans
    Extra services: credit card and bank accounts
    Cons
    Variables: Rates, terms, and qualifications
    Credit score requirement: 630+
    No long term loans: Up to 18 months