Best Unsecured Business Loans in November 2025
Unsecured business loans offer fast funding without putting up collateral, but your assets may still be at risk.
| Lender | Starting rate | Amount | Term | Time in business | |
|---|---|---|---|---|---|
|
Not specified | Up to $50k | Up to 48 months | 6 months | |
|
7.80% | $1k – $250k | Up to 12 months | 12 months | |
|
4.66% | Up to $250k | 3 – 6 months | 3 months | |
|
13.00% | $5k – $1.5M | Up to 18 months | 6 months | |
|
8.75% | $10k – $150k | Revolving | 6 months | |
|
Not specified | Up to $50k | 12 – 24 months | 12 months | |
|
8.49% | $5k – $350k | 12 – 60 months | 1 year | |
|
Not specified | $20k – $100k | 24 – 60 months | 24 months |
Best unsecured business lenders: More details
Best for: Fast funding – U.S. Bank
- Same-day funding available
- Shorter time in business requirement
- No origination fee
- Small loan amounts
- Unclear eligibility requirements
- Only short repayment terms available
U.S. Bank’s Unsecured Quick Loan offers same-day funding, making them our top choice for an unsecured loan for business owners who need money quickly.
The company offers short-term business loans up to $50,000.00 with the option to receive same-day funding and pay it back over up to 48. Plus, since it has a shorter time in business requirement, it may be a good fit for newer businesses as well.
One drawback is that the bank’s website lacks details on the specifics of this loan, including whether there is a minimum credit score or annual revenue requirement.
Read our full U.S. Bank small business loan review.
In order to qualify, you’ll need to meet U.S. Bank‘s criteria of:
- Minimum credit score: Not specified
- Minimum time in business: 6 months
- Minimum annual revenue: Not specified
Best for: Low rates – Bluevine
- Flexible funding
- Low starting interest rate
- Available to business owners with fair credit
- High annual revenue requirement
- Longer time in business requirement
- Short repayment terms
If you’re looking for flexible access to funding at an affordable price, consider Bluevine’s business line of credit, which offers one of the lowest starting interest rates on this list. Like business credit cards, lines of credit allow you to borrow money on an as-needed basis and replenish the funds upon repayment.
That said, Bluevine’s line of credit is likely only going to be an option if your business is well established. Its annual revenue requirement of $120,000 may be hard for newer businesses to reach. In addition, its 12 months time in business requirement excludes startups.
Plus, the fact that Bluevine’s rates start low doesn’t mean that’s the rate your business will qualify for — consider getting several quotes for your business so you can compare offers before choosing a loan.
Read our full Bluevine business line of credit review.
In order to qualify, you’ll need to meet Bluevine‘s criteria of:
- Minimum credit score: 625
- Minimum time in business: 12 months
- Minimum annual revenue: $120,000
Best for: Startups – Fundbox
- Short time in business requirement
- Low annual revenue requirement
- Low minimum credit score requirement
- Low maximum borrowing amount
- Short repayment terms
- Only one product available
Startups who are looking for unsecured business funding may want to turn to the line of credit through Fundbox. Its minimum credit score requirement, annual revenue requirement and time in business requirement are all more lenient than you might see with other lenders, making it a good fit for businesses that are just getting started.
But there are some tradeoffs to these flexible qualifying standards. At just $250,000.00, the borrowing cap is lower than you might find elsewhere. Also, Fundbox’s line of credit is the only financing product it offers, which can be limiting for business owners seeking a lump sum of cash.
Read our complete Fundbox business loan review.
In order to qualify, you’ll need to meet Fundbox‘s criteria of:
- Minimum credit score: 600
- Minimum time in business: 3 months
- Minimum annual revenue: $30,000
Best for: Borrowers with bad credit – Fora Financial
- Ability to borrow large loan amounts
- Low minimum credit score
- Short time in business requirement
- Publishes factor rate instead of interest rate
- Short loan terms
- Higher annual revenue requirement
Borrowers with bad credit may want to explore Fora Financial, as the lender accepts scores as low as 570 — by far the lowest credit requirement on this list. In addition, it offers the ability to borrow large loan amounts with its funding cap extending to $1,500,000.00, meaning that you should be able to use a Fora Financial loan to fund just about any business expense.
However, you’ll likely pay more in interest charges, especially if you have a lower credit score. As a rule of thumb, whenever interest is expressed as a factor rate, the rates tend to be higher. There are exceptions to this, but you’ll want to make sure you understand the full cost of the loan before agreeing to anything. Plus, you’ll be subject to a relatively short repayment term when paying back the amount that you’ve borrowed.
Read our complete Fora Financial business loan review.
In order to qualify, you’ll need to meet Fora Financial‘s criteria of:
- Minimum credit score: 570
- Minimum time in business: 6 months
- Minimum annual revenue: $240,000
Best for: Business owners who prefer traditional borrowing – Wells Fargo Bank
- Low starting interest rate
- Points-based rewards program
- No annual fee for the first year
- Not transparent about all of its eligibility requirements
- Relatively high minimum loan amount
- Annual fee after the first year
If you’re not a fan of online lenders and you would rather get your financing from a traditional bank, consider Wells Fargo Bank’s BusinessLine® line of credit. This lender offers unique perks for borrowers, like a points-based rewards program (similar to credit cards rewards) and no foreign transaction fees. Plus, it offers options for both established businesses and startups. Their startup option, the Small Business Advantage® line of credit, has a max loan amount of $50,000.00 and slightly higher interest rates.
At the same time, though, Wells Fargo Bank is not fully transparent about its eligibility requirements, which can make it hard to tell if you’ll qualify for financing. Plus, this line of credit comes with fees and requires a personal guarantee.
Read our full Wells Fargo Bank business loan review.
In order to qualify, you’ll need to meet Wells Fargo Bank‘s criteria of:
- Minimum credit score: Typically 680
- Minimum time in business: 6 months
- Minimum annual revenue: Not specified
Best for: Low-revenue businesses – Headway Capital
- Low annual revenue requirement
- Flexible payment schedules
- Short time in business requirement
- Low borrowing cap
- Doesn’t fully disclose eligibility information
- Not transparent about interest rates
Borrowers who struggle to meet the annual revenue requirement with other lenders may be better served by Headway Capital, which only requires businesses to make $50,000 in annual revenue to qualify — a lower requirement than most lenders. What’s more, this lender provides the option to pick between a weekly or monthly repayment schedule, providing added flexibility.
But there are some drawbacks to this lender. First and foremost, the borrowing cap on its unsecured line of credit is fairly low, extending to only $50,000.00. In addition, Headway Capital is not very transparent about all of its eligibility requirements and rate information, which makes it hard to tell if they’re a fit for your business without applying.
Read our entire Headway Capital business loan review.
In order to qualify, you’ll need to meet Headway Capital‘s criteria of:
- Minimum credit score: Not specified
- Minimum time in business: 12 months
- Minimum annual revenue: $50,000
Best for: Minority business owners – Accion Opportunity Fund
- Prioritizes minority small business owners
- Provides business coaching and mentoring
- Offers flexible loan terms
- Not available in Montana, North Dakota, South Dakota, Tennessee, Vermont or District of Columbia
- Doesn’t disclose minimum credit score requirement
- Has origination fees of 3.00% to 5.00%
Accion Opportunity Fund is our top choice for minority business owners because of both its mission and benefits.
It’s a nonprofit lender that focuses on addressing racial and gender inequalities by providing financing to minority business owners who have had trouble getting loans from traditional lenders. It combines flexible loan terms with perks like one-on-one business coaching and resources in both English and Spanish. Plus, it offers relatively low starting interest rates.
Accion Opportunity Fund does not disclose a minimum credit score requirement. However, the website does state that it looks at many factors beyond credit score when weighing loan approval decisions.
In order to qualify, you’ll need to meet Accion Opportunity Fund‘s criteria of:
- Minimum credit score:
- Minimum time in business: 1 year
- Minimum annual revenue: $50,000
Best for: Businesses in low-income communities – PNC Bank
- Rate discount for businesses in low- or moderate-income communities
- Low minimum loan amount
- Over 2,000 branches nationwide
- Longer time in business requirement
- Doesn’t disclose interest rates
- Some eligibility requirements are unclear
PNC Bank’s small business loan is our top choice for businesses located in low-income communities because it offers 1.00% off its standard rates for businesses located in low- and moderate-income areas. That can be a significant difference — but it’s still a good idea to compare several quotes before signing up to check if that discounted rate makes them the cheapest option for your business.
PNC Bank loan amounts start at $20,000.00, making it an option for small businesses that need a smaller loan.
PNC Bank doesn’t disclose a minimum credit score for its small business loans. However, it does state that a personal credit history of five or more years that shows on-time payments on various types of debt is desired.
Read our full PNC Bank small business loan review.
In order to qualify, you’ll need to meet PNC‘s criteria of:
- Minimum credit score: Not specified
- Minimum time in business: 24 months
- Minimum annual revenue: Not specified
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What is an unsecured business loan?
At its core, the term “unsecured business loan” refers to any business loan that is not secured by collateral. Secured business loans, on the other hand, are backed by an asset, such as property or equipment. If you stop making payments on a secured business loan, the lender can repossess your asset as a form of repayment.
Since unsecured business loans do not have an asset attached to them, they are often considered riskier for the lender. As a result, they may come with more stringent eligibility requirements and higher interest rates than a secured option. But, at the same time, you’re not putting an asset at risk.
Types of unsecured business loans
Many types of business loans can provide financing without collateral, including:
Business term loans typically provide you with funding in a lump sum and then you repay the loan through a series of fixed principal and interest payments over time. Long-term business loans usually work on a monthly repayment schedule, while short-term business loans tend to work on daily or weekly repayment schedules.
Similar to a business credit card, a line of credit is a form of revolving credit that you can draw from as needed. In this case, you’ll only pay interest against what you borrow. Unsecured lines of credit may come with higher interest rates and may require a personal guarantee.
Merchant cash advances (MCAs) are an alternative form of business financing where you receive an upfront cash payment in exchange for a percentage of your future sales.
Since this type of funding typically boasts more lenient eligibility requirements, it may be an option for newer businesses that don’t qualify for lower-cost financing.
Invoice factoring allows you to sell your outstanding invoices to a factoring company in exchange for an advance payment on a percentage of the total invoiced amount. After the factoring company collects payments on your behalf, they will deduct their fee and send you the remaining balance.
A personal guarantee is a common provision in business loan agreements. It holds the business owner(s) personally responsible for repaying the company’s debts in the event that the company defaults on the loan. This means that, as the business owner, you’ll have to agree to accept responsibility for repaying the debts and that your credit score will be on the line if you’re unable to keep up with the payments.
How to get an unsecured business loan
To apply for a business loan:
-
Determine your borrowing needs
Go over your budget to determine what amount you need and whether you can afford repayments. You can use our business loan calculator to get a better sense of how borrowing various loan amounts will affect your budget. -
Evaluate your qualifications
Once you decide what you can afford, you will also need to consider what you can qualify for and what the business loan requirements are. Typically, lenders look at your annual revenue and how long you’ve been in business. Lenders will also look at your personal and business credit score when determining rates and eligibility. -
Compare lenders
It’s always a good idea to compare lenders to help find the best rate and the least amount of fees for your unsecured business loan. You can do so by reading reviews, visiting lenders’ websites and asking peers in your industry for recommendations. -
Submit an application
Once you have found the lender that’s the best fit for you, it’s time to apply for a business loan. Applications can usually be done online, but lenders may ask for supporting documentation, such as a business plan or business tax returns.
How to compare unsecured business loans
Comparing lenders may save you a substantial amount of money over the life of the loan. Here’s what to look for once you have your loan offers in hand:
Interest rate
Unsecured business loan interest rates can vary widely based on the lender and the loan type. Choosing the lowest interest rate will typically save you the most money over the life of the loan.
Repayment term
Unsecured loans could require daily, weekly or monthly payments. Before signing on the dotted line, make sure that you’re able to keep up with the repayment schedule.
Time to fund
When you need funds quickly, you might want to consider a fast business loan with an alternative lender. In some cases, you could receive funds on the same day as loan approval. However, you typically have to pay higher interest rates for the extra convenience.
Added fees
Be sure to read the fine print in your business loan agreement so you can spot any added fees, such as origination fees, late charges and prepayment penalties.
Loan use
Some business loans come with restrictions on how you’re allowed to spend the funds. Check with your lender to ensure their loan is an ideal match for your business type.
Pros and cons of unsecured business loans
Pros
- Collateral is not required.
- The application process is usually fairly simple.
- There are a wide variety of loan options, including choices for startups and bad credit borrowers.
Cons
- Interest rates may be higher than secured loans.
- A personal guarantee is usually required.
- Approval often is based largely on the strength of your credit score.
Alternatives to unsecured business loans
If an unsecured business loan is not the right choice for you, consider these alternatives:
-
Secured business loans
As explained above, secured business loans come with collateral attached to them. As a result, they often offer more lenient qualifying standards and more affordable interest rates than unsecured loans. -
SBA loans
Loans backed by the Small Business Administration (SBA) also typically have more lenient eligibility standards than other, more traditional forms of business funding. But, in exchange, they come with a lengthy application process and longer funding times. -
Small business grants
Small business grants are available from local and nationwide government and nonprofit organizations, as well as private companies. If eligible, you could receive funds for your business that don’t need to be repaid. However, the small business grant application process tends to be time-intensive and competitive. -
Business credit cards
If you’re looking to finance day-to-day expenses, business credit cards are another option to consider. Their eligibility criteria is typically less stringent than business loans, but credit card interest rates are also typically significantly higher than most small business loans.
Frequently asked questions
Yes, it’s possible to borrow money without collateral using an unsecured business loan. But be aware that these loans often come with stricter eligibility criteria and higher interest rates than business loans that are backed by an asset.
To qualify for an unsecured business loan, your business will generally need to have sufficient revenue and longevity. You may also need a strong personal FICO score and to provide a personal guarantee.
Every lender’s minimum credit score requirements are different. Typically, a score of 670 and above is considered a good credit score and will be sufficient enough to get you approved for most loans. Meanwhile, a score of 740 or above is considered very good or excellent and is more likely to get you access to the most affordable interest rates.
Our methodology: How we chose the best unsecured business loans
We reviewed more than 22 lenders to determine the overall best nine unsecured business loan loans. To make our list, lenders must meet the following criteria:
- Qualification criteria: We factor in how easy it is to qualify for a loan and include lenders for newer businesses.
- Rates and terms: We prioritize lenders with more competitive fixed rates, fewer fees and greater options for repayment terms, loan amounts and APR discounts.
- Repayment experience: For starters, we consider each lender’s reputation and business practices. We also favor lenders that report to all major credit bureaus, offer reliable customer service and provide unique perks to customers, like free wealth coaching.
Best unsecured business loan summary
- U.S. Bank: Best for fast funding
- Bluevine: Best line of credit for established businesses
- Fundbox: Best line of credit for startups
- Fora Financial: Best for bad credit borrowers
- Wells Fargo Bank: Best traditional bank loan
- Headway Capital: Best for low-revenue businesses
- Accion Opportunity Fund: Best for minority business owners
- PNC Bank: Best for interest rate discounts