Best Unsecured Business Loans For 2024

Get Started With BusinessLoans.com

Total Rating	4.0
Rates & Fees4.6
Services4.0
Eligibility Requirements4.1
Application3.0
Sales & Advertising Transparency3.6
Customer Service4.1
User Reviews4.4

Pros

No minimum FICO to apply
Receive multiple offers with no hard credit check
High borrowing amounts

Cons

Website isn’t very informative
Some lenders require blanket lien and/or personal guarantee

Why We Chose BusinessLoans.com For Businesses With Bad Credit

BusinessLoans.com is a one-stop shop for business financing. BusinessLoans.com is a marketplace with multiple unsecured business financing options, including short-term loans, lines of credit, merchant cash advances, and invoice financing. Simply fill out the quick application, and if you qualify, you'll start receiving offers from partnered lenders.

Best of all, there is no minimum credit score to apply to BusinessLoans.com, so you can potentially get unsecured business loan offers if you have bad credit as well as no collateral.

BusinessLoans.com Eligibility Requirements

BusinessLoans.com prefers that applicants have at least 6 months in business with business revenues of at least $100,000 per year.

BusinessLoans.com Rates & Fees

BusinessLoans.com rates and fees vary by lender.

When To Use ...

You don’t qualify for a traditional business loan due to bad credit or a short time in business
You are not sure what types of financing you qualify for and want to see your options

Revenued: Best Business Loans With No Personal Guarantee

Revenued

Get Started With Revenued

Total Rating	3.7
Rates & Fees2.5
Services3.4
Eligibility Requirements4.0
Application4.8
Sales & Advertising Transparency3.8
Customer Service4.3
User Reviews4.9

Pros

Bad credit-friendly business charge card
Cash advance with no personal guarantee
No hard credit pull

Cons

Cannot carry a balance
Doesn’t build credit
Doesn’t earn rewards

Why We Chose Revenued For Best Business Loans With No Personal Guarantee

Revenued offers a business credit card for bad credit, as well as the option to take out cash advances up to your credit card limit. Revenued is one of the few business financing options that does not require a personal guarantee so you won't be personally on the hook to repay your loan if your business folds.

Revenued doesn't even perform a hard credit pull during the approval process -- only a soft check to ensure that you don't have any previous merchant cash advance defaults.

Revenued Eligibility Requirements

Revenued has no minimum credit score to apply, and in fact, Revenued doesn’t even consider credit scores. Your business does need to be at least 6 months old and bring in at least $180,000/year — your credit line is based on your revenues so it’s not a suitable option for brand-new startups.

Revenued Rates & Fees

Revenued doesn’t charge any credit card fees (no interest, no annual fee), but you do need to pay off your balance every month. As for cash advances, factor rates range from 1.1 to 1.5.

When To Use ...

You want a business charge card with no credit check
You have strong cash flow but need a cash advance

Upstart: Best Unsecured Startup Business Loans

Upstart

Total Rating	4.0
Rates & Fees3.6
Services3.4
Eligibility Requirements4.7
Application4.8
Sales & Advertising Transparency4.1
Customer Service3.9
User Reviews4.1

Pros

No blanket lien or personal guarantee
Startup-friendly
Suitable for poor credit/no credit

Cons

Low borrowing amounts
Origination fee

Why We Chose Upstart For Startups

Upstart offers personal loans that can be used for business. These are medium-term installment loans ranging from $1,000–$50,000 that you can take 3 or 5 years to pay off. Upstart loans do not require any collateral, blanket lien, or even a personal guarantee.

Upstart is primarily geared toward consumers and not businesses, but its loans are appropriate for startup businesses without significant business qualifications or assets.

Upstart Eligibility Requirements

The main qualifications you need to be approved for an Upstart loan are:

A FICO score of 300
No delinquent accounts
No recent bankruptcies
Fewer than 6 inquiries on your credit report in the last 6 months

Upstart Rates & Fees

Personal loans through Upstart offer a fixed interest rate ranging between 7.8% – 35.99% (based on 5-year rates offered in April 2024).

When To Use ...

You need a small amount of capital to start a business
You need a business loan but have very poor credit

Get Started With Upstart

OnDeck: Best Short-Term Business Loans

OnDeck

Total Rating	3.9
Rates & Fees4.6
Services2.9
Eligibility Requirements3.8
Application4.5
Sales & Advertising Transparency3.8
Customer Service4.1
User Reviews4.0

Pros

Helps build credit by reporting payments to credit bureaus
Same-day funding available
Multiple unsecured financing options
Lower costs for repeat customers

Cons

Blanket lien & personal guarantee required
Origination fee

Why We Chose OnDeck For Best Short-Term Loans

OnDeck is a leading provider of unsecured short-term loans for small businesses. OnDeck is a favored lender in this space due to its convenient same-day financing as well as transparent fees and easy-to-meet borrower qualifications.

In addition to short-term business loans up to $250,000, OnDeck also offers a business line of credit up to $100,000.

OnDeck Eligibility Requirements

OnDeck requires 1 year in business, $100,000 in annual business revenue, and a FICO of 625.

OnDeck Rates & Fees

According to OnDeck, the average APR for its short-term loans is 55.8% and the average rate for lines of credit is 52.6% (based on loans originated in the half-year ending March 31, 2024).

When To Use ...

You have fair credit and are working to improve your score
You need a fast, convenient loan or line of credit

Get Started With OnDeck

Lendio: Best Business Loans Marketplace

Lendio

Total Rating	4.8
Rates & Fees5.0
Services5.0
Eligibility Requirements4.9
Application4.5
Sales & Advertising Transparency4.4
Customer Service4.9
User Reviews4.9

Pros

Multiple financing products available
Some lenders in network accept bad credit
No-collateral SBA microloans available

Cons

Some lenders require blanket lien and/or personal guarantee
Not as fast as some online lenders
Revenue requirements can be high

Why We Chose Lendio For Best Business Loans Marketplace

Similar to BusinessLoans.com, Lendio is an online business marketplace. Lendio offers a vast range of unsecured small business loan options, even including SBA loans (SBA microloans, in particular, can be unsecured). In total, Lendio works with over 75 small business lenders, including some of the other lenders on this list. You can essentially apply to all of these lenders with a single 15-minute application.

Lendio does have minimum credit score requirements depending on which type of financing you want, but some unsecured loan options, like invoice financing, have low credit score requirements. If you're not sure what financing you might qualify for, Lendio provides lots of useful information on its website.

Lendio Eligibility Requirements

Lendio eligibility requirements vary by lender. Generally, applicants should have at least 6 months in business, a credit score of at least 500, and monthly deposits of at least $15K ($180K/year).

See Lendio’s website for more information on eligibility, sorted by financing type.

Lendio Rates & Fees

Lendio rates and fees vary by lender. Again, you can refer to Lendio’s website for more information on rates sorted by financing type.

When To Use ...

You want to choose from more than one unsecured business financing option
You want to apply for an SBA loan that doesn’t require collateral

Get Started With Lendio

Bluevine: Best For Fast Business Loans

Bluevine

Get Started With Bluevine

Total Rating	3.7
Rates & Fees3.8
Services3.6
Eligibility Requirements3.6
Application4.5
Sales & Advertising Transparency3.4
Customer Service3.4
User Reviews3.4

Pros

Same-day financing available
No monthly fee
Monthly repayments (for high-revenue businesses)

Cons

Blanket lien & personal guarantee required
High business revenue requirement

Why We Chose Bluevine For Fast Loans

Bluevine is a business line of credit provider, offering unsecured business LOCs up to $250,000. If your business struggles with cash-flow problems but can't qualify for a bank loan or line of credit, Bluevine is worth checking out. Bluevine lines of credit are super fast; you can get approved within minutes and potentially receive your funds the same day.

Additionally, Bluevine offers short-term loans through a network of lending partners, also up to $250K, with a repayment term of up to 24 months. You can apply for a Bluevine LOC or short-term loan with a single application.

Bluevine Eligibility Requirements

A Bluevine line of credit requires a 625 FICO, 2 years in business, and at least $40,000/month in business revenue. Providing a link to your business bank account makes it faster for Bluevine to confirm your credentials.

Bluevine Rates & Fees

Bluevine does not disclose its interest rates, but states that there are no monthly maintenance fees for LOCs. Repayments are weekly or monthly depending on whether you qualify for the 6-month LOC or the 12-month LOC (12-month LOC have the option of monthly repayments).

When To Use ...

You want a line of credit you can quickly get approved for and start drawing from right away
You have fair credit but strong monthly revenues

Fundbox: Best For Small Loans

Fundbox

Total Rating	3.8
Rates & Fees3.1
Services3.6
Eligibility Requirements4.5
Application4.8
Sales & Advertising Transparency3.8
Customer Service3.0
User Reviews4.4

Pros

No personal guarantee on most draws under $50K
Easy application & cash draws with Fundbox mobile app
No draw fees
No prepayment penalty

Cons

Doesn’t report positive payment activity to credit bureaus
Requires blanket lien

Why We Chose Fundbox For Small Loans

Fundbox is a user-friendly business lender offering an unsecured line of credit for small businesses, including those new to business lending. Fundbox is ideal for small, quick cash infusions. Though Fundbox's maximum line of credit is $150,000, Fundbox says it does not require a personal guarantee on most smaller draws (up to $50K).

Each draw from your Fundbox LOC is structured like a short-term loan which you will have to repay in 12 or 24 weekly payments. Yes, this is quick, but fees are very transparent, and you'll know exactly how much each payment will be before you sign for the loan.

Fundbox Eligibility Requirements

Fundbox requires annual business revenues of $100,000, plus a FICO of 600, and ideally, 6 months in business.

Fundbox Rates & Fees

Fundbox charges an average of 4.66% for 12-week lines of credit and 8.99% on 24-week lines of credit. However, the company says, “Fees may vary for each customer and over time.”

When To Use ...

You need a line of credit for small, frequent cash draws
You don’t have the business credentials to qualify for a line of credit from a bank

Get Started With Fundbox

National Funding: Best For Large Loans

National Funding

Get Started With National Funding

Total Rating	3.7
Rates & Fees3.8
Services2.8
Eligibility Requirements4.3
Application4.8
Sales & Advertising Transparency3.8
Customer Service2.9
User Reviews3.7

Pros

Financing up to $500K
Funding within 24 hours
Multiple types of financing to choose from

Cons

Requires personal guarantee & origination fee
Daily repayments

Why We Chose National Funding For Large Loans

National Funding is an online business lender whose offerings include multiple types of unsecured financing, including larger business loans up to $500,000 and equipment financing up to $150,000. National Funding is fast, easy, and suitable for businesses in a number of industries.

National Funding fees can be on the higher side, but these loans are relatively easy to qualify for, and there are not too many business lenders offering an unsecured loan this large and this fast -- within 24 hours.

National Funding Eligibility Requirements

National Funding requires 6 months in business, a credit score of 600, and annual revenues of at least $250,000.

National Funding Rates & Fees

National Funding charges a one-time fee which typically falls between 17%-36% of your loan. Additionally, you’ll pay an origination fee ranging from 1-3%.

When To Use ...

You own a young (6+ months), fast-growing business but have subprime credit
You need a large, fast loan for working capital or to purchase equipment

Business Loan & Funding Products Review Methodology

We spend hours researching and evaluating each business loan and funding product that we review at Merchant Maverick, placing special emphasis on key characteristics to generate our ratings.

Weighted Rating Breakdown

Rates & Fees 20%

Services 20%

Eligibility Requirements 20%

Application 15%

Sales & Advertising Transparency 10%

Customer Service 10%

User Reviews 5%

When rating lenders and funding providers, we use a 31-point rubric that looks at rates and fees, services, eligibility requirements, application, sales and advertising transparency, customer service, and user reviews. We weigh each section differently to calculate the total star rating. This rubric is applied to traditional term loans, as well as short-term loans, start-up loans, lines of credit, online lending products, merchant cash advances, and equipment financing products.

Rates & Fees: 20% of the total star rating
Services: 20% of the total star rating
Eligibility Requirements: 20% of the total star rating
Application: 15% of the total star rating
Sales & Advertising Transparency: 10% of the total star rating
Customer Support: 5% of the total star rating
User Reviews: 5% of the total star rating

Each section is further broken down into granular, weighted subsections, in which we examine specific attributes like terms lengths, conditions of repayment, credit score and revenue requirements, ease of application, length of time to funding, the ethics involved in promoting the lending product, customer support, and the overall reputation of the lender or funding provider.

Read more about how we rate small business lenders.

8 Types Of Unsecured Business Loans

Some types of business financing are technically “self-secured,” as the item being financed serves as the collateral on the loan. Some of these include equipment financing, invoice financing, inventory financing, and auto loans.

Other common types of unsecured business financing include the following.

Types Of Unsecured Business Loans

Short-Term Loan: Loans that you have up to a year (or less) to pay back (example: OnDeck)
Medium-Term Loan: Loans that you have 2-5 years to pay back (example: Upstart)
Personal Loan: A loan that you can take out even if you have no business qualifications (example: Upstart)
Line Of Credit: A credit line you can draw from to pay business expenses as needed (examples: OnDeck, Bluevine, Fundbox)
Merchant Cash Advance: An advance on your business’s future credit card sales (example: Revenued)
Equipment Financing: A loan to pay for business equipment (example: National Funding)
Invoice Financing: An advance on your company’s unpaid invoices (example: BusinessLoans.com)
SBA Microloan: A small SBA loan up to $50,000 (example: Lendio)

In addition to small business loans, the employee retention credit could also be a great cash flow solution for your business. The ERC is a tax credit that doesn’t have to be paid back where qualifying businesses can receive up to $26,000 per employee. These ERC companies can help you file for this credit.

How To Choose A Lender For An Unsecured Business Loan

Once you have a list of loans you are interested in and eligible for, you can prequalify for loans and compare initial offers. With these offers, you can narrow down the list further by comparing the important attributes of each loan. Some crucial things to consider include the following.

Considerations For Choosing A Lender

Typical time-to-funding (how soon you’ll get the money after applying)
The loan’s APR or factor rate (total cost you’ll pay for the loan)
How long you have to repay the loan
How much each loan payment will be
Whether there is an origination fee (an amount that is taken from the loan total upfront)
Whether there is a prepayment penalty (on short-term loans)
Any other fees and their amounts
The lender’s overall reputation

If you have a few basic pieces of information about a loan you’re considering (total loan amount, repayment frequency, interest rate, etc.), you can use one of our small business loan calculators to determine both how much your payments will be and the total cost of your loan.

It’s important to understand all the pertinent information about a loan’s terms before you accept an offer. If you can’t find much specific information about a business loan, even after you prequalify, this is a bad sign.

What You Need To Apply For An Unsecured Business Loan

Borrower requirements for business loans inevitably vary from one lender to the next. However, most business lenders will want to see that you have a few key things.

Unsecured Business Loan Requirements

The following requirements will apply to most business loan applicants:

A legal business entity (e.g., an LLC)
Business bank account
Business tax ID number
Business phone number and website
Vendors that report to credit bureaus

Additionally, you’ll need to meet the requirements for credit score, time-in-business, annual revenue, and other requirements as outlined for each lender above.

Unsecured Business Loan Documentation

As far as which documents you need to apply for a business loan, you’ll again want to check details about the specific loan for which you’re applying. Odds are good that you will need to have at least the following:

Business license
Business lease
Business bank statements for the past 3 months (or longer)
Business financial statements, including Profit & Loss and Income Statement
Personal income tax returns for the past 3 years
Outline of business expenses
A business plan that explains how you will use the loan

If you’re applying for a personal loan, you will not need to show most of these things. Still, it’s a good idea to keep business and personal finances as separate as possible.

Before applying for a business loan, you should also check your credit report, make an effort to improve your business credit score, and be aware of any judgments or liens on your business.

Final Thoughts On Unsecured Business Loans

Unsecured loans are not without risk. Lenders try to mitigate this risk by tacking on higher interest rates and withdrawing loan repayments directly from your bank account frequently (such as daily or weekly). Please also be forewarned that even if a lender doesn’t require a blanket lien or personal guarantee, they can still sue you if you don’t pay and seize your assets that way.

So to sum up, you shouldn’t choose an unsecured loan because you think it will protect your assets. Rather, this loan type is more appropriate for businesses that don’t have much to offer up as collateral and, therefore, can’t qualify for a secured loan. However, for many newer and less creditworthy businesses that are shut out of the traditional lending market, unsecured financing can be a godsend.

If you don’t qualify for any of these unsecured business loans, we do have more options for you. Check out these business loans for bad credit and business loans for startups.

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Shannon Vissers

Lead Staff Writer at Merchant Maverick

Shannon has been writing for Merchant Maverick about small business software and financing since 2015. She started writing professionally about business topics in 2005. Shannon has been featured in the Washington Post, Reader's Digest, US News, MSN, Yahoo Finance, Business Insider, and other publications. She has a bachelor's degree in English from San Diego State University and currently resides in San Diego, California.

@ShannonVissers

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1. BusinessLoans.com

❮ ❯

Offers: Term loans, lines of credit, & more
Revenue Requirements: $100K/year
Minimum Credit Score: N/A

2. Revenued

❮ ❯

Offers: Business credit card & merchant cash advances
Revenue Requirements: $15K/month ($180K/year)
Minimum Credit Score: N/A

3. Upstart

❮ ❯

Offers: Personal loans
Revenue Requirements: N/A
Minimum Credit Score: 300

4. OnDeck

❮ ❯

Offers: Short-term loans & lines of credit
Revenue Requirements: $100K/year
Minimum Credit Score: 625

5. Lendio

❮ ❯

Offers: Multiple types of business financing from 75+ lenders
Revenue Requirements: Varies
Minimum Credit Score: 500

6. Bluevine

❮ ❯

Offers: Lines of credit & short-term loans
Revenue Requirements: $40K/month ($480K/year)
Minimum Credit Score: 625

7. Fundbox

❮ ❯

Offers: Short-term lines of credit
Revenue Requirements: $100K/year
Minimum Credit Score: 600

8. National Funding

❮ ❯

Offers: Term loans & equipment financing
Revenue Requirements: $250K/year
Minimum Credit Score: 600