The best unsecured business loans can issue funding without requiring any collateral. Lenders should have consistently high customer reviews, and the loans should also carry a combination of competitive interest rates and flexible terms. Since the best loan will vary based on your company’s circumstances and goals, we’ve selected lenders with different types of loans and ranges of qualification requirements.
Below are our picks for the 10 best business unsecured loans for 2024:
- SBG Funding: Best overall for custom loan options, customer service, and fast funding
- Creditfy: Best for newer businesses seeking large funding amounts
- Lendio: Best for long repayment terms
- Clarify Capital: Best for multiple loan options
- QuickBridge: Best for simple application process and easy documentation requirements
- National Funding: Best for customer service
- Bluevine: Best line of credit for established businesses
- Credibly: Best for short-term and smaller financing needs
- American Express: Best credit line for low-revenue businesses
- 1West: Best for startups and businesses with bad credit
Are you looking for business financing? Our partners at SBG Funding will guide you every step of the way to get you the offer best suited for your business. |
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Best Unsecured Business Loans At a Glance
Maximum Loan Amount | Maximum Loan Term | Estimated Starting Annual Percentage Rate (APR) | Minimum Credit Score | Annual Revenue Required | Minimum Time in Business | |
---|---|---|---|---|---|---|
Varies | $350,000 | 6 months | ||||
$2.5 million | 5 years | 9.49% | Not stated | Not stated | 3 months | |
$2 million | 10 years | 8.49% | 600 | $96,000 | 12 months | |
$5 million | 24 months | 5% | $120,000 | 6 months | ||
$500,000 | 16 months | Varies | 600 | $250,000 | 6 months | |
$500,000 | 16 months | Varies | 600 | $250,000 | 6 months | |
$250,000 | 12 months | 6.2% | 625 | $480,000 | 24 months | |
| 24 months | Varies | 500 | $180,000 | 6 months | |
$250,000 | 24 months | Varies | 660 | $36,000 | 12 months | |
$1 million | 24 months | 8% | 500 | $120,000 | 3 months | |
SBG Funding: Best Overall for Custom Loan Options, Customer Service & Fast Funding
Rates & Terms | |
Approval Time | As fast as 24 hours |
Funding Speed | As fast as the same day |
Loan Amount |
|
Estimated APR | Varies (1% to 1.75% per month average fixed rate) |
Repayment Term |
|
Repayment Schedule |
|
Loan Type | Term loan and line of credit |
Qualifications | |
Credit Score | 600 (650 for term loan) |
Time in Business | 6 months |
Annual Business Revenue | $350,000 |
Why We Like SBG Funding
SBG Funding is an excellent option for businesses seeking an unsecured business loan. It can offer same-day funding and customized payment options at competitive rates. The company also consistently receives excellent ratings from customers, a testament to the quality of service you can expect to receive.
Loan terms and payment options can be customized to be manageable for your company. This can include loan terms of up to seven years and the potential to have deferred payments for up to three months.
Since the last time we recommended SBG Funding, it now offers higher loan amounts and longer repayment terms. It has, however, adjusted its minimum qualification requirements to be more strict. Borrowers should also be aware that despite a high approval rate of 85%, businesses may need to have compensating factors to offset any weaknesses in the loan application. In other words, meeting the minimum eligibility criteria stated above will not guarantee a loan approval.
To learn more or to apply, visit SBG Funding’s website. Applications can be completed online in a matter of minutes and decisions issued within 24 hours, with funding that can occur as fast as the same business day.
Creditfy: Best for Newer Businesses Seeking Large Funding Amounts
Rates & Terms | |
Approval Time | As fast as 24 hours |
Funding Speed | As fast as same day |
Loan Amount | Up to $2.5 million |
Estimated APR | 9.49% and up |
Repayment Term | 6 months to 5 years |
Repayment Schedule | Daily and weekly |
Loan Type | Term loan |
Qualifications | |
Credit Score | Not stated |
Time in Business | 3 months |
Annual Business Revenue | Not stated |
Why We Like Creditfy
Creditfy offers an unsecured business term loan with up to $2.5 million in financing. That’s the third largest amount out of the companies we selected, making it a good option if your funding needs are high.
Creditfy’s business term loan has rates that start as low as 9.49% for well-qualified businesses. At a minimum, you must be in business for at least three months. It does not specify any minimums for credit score or annual revenue but does state it has a loan approval rate of 90%.
While repayment terms are listed as being available from six months to five years, borrowers should note that Creditfy’s term loan is often meant for short-term expenses paid in one year or less, so it may be difficult to qualify for a longer repayment term. Funds can be used for a wide variety of business expenses, including as a cash flow bridge for late receivables, purchasing inventory, and covering accounts payable (A/P).
Creditfy states that it has exclusive partnerships with certain lenders, so it can be a good choice if you are looking for more options or have had difficulty getting approved elsewhere. It also requires its loan representatives to have a minimum of two years of industry experience, so you can be assured you’ll be working with a knowledgeable individual when it comes to matching you with the right loan type.
In addition to its business term loan, Creditfy also offers a small business line of credit, equipment financing, invoice financing, bridge loans, and Small Business Administration (SBA) loans. Applications can be submitted through the broker’s website, a process that should take no more than five minutes.
Lendio: Best for Long Repayment Terms
Rates & Terms | |
Approval Time | As fast as 24 hours |
Funding Speed | As fast as 24 hours |
Loan Amount | $5,000 to $2 million |
Estimated APR | As low as 8.49% |
Repayment Term | 6 months to 10 years |
Repayment Schedule | Monthly |
Loan Type | Term loan |
Qualifications | |
Credit Score | 600 |
Time in Business | 12 months |
Annual Business Revenue | $96,000 |
Why We Like Lendio
Lendio offers a term loan that has the longest repayment term in our guide, making it a good option if you’re looking for low monthly payments to help alleviate cash flow issues. Term loans obtained from Lendio can be used for a number of different purposes, including working capital, hiring new employees, covering payroll costs, and refinancing debt.
This loan broker is partnered with over 75 different lenders. While the advantage of working with a broker is the ability to improve your odds of getting matched with a lender willing to issue an approval, you may not know the exact terms and qualifications until after you submit a loan application.
When you work with Lendio, you’re paired with a dedicated funding specialist to walk you through the process and provide you with loan options. The added benefit here is that you can get confirmation on the best type of financing for your company’s needs. If a term loan is not right, you could be referred to Lendio’s other lending options, which include accounts receivable financing, business lines of credit, SBA loans, cash advances, and equipment financing.
To apply, visit Lendio’s website. Applications can be completed in less than 15 minutes, after which you’ll receive follow-up instructions via email or phone.
Clarify Capital: Best for Multiple Loan Options
Rates & Terms | |
Approval Time | As fast as 24 hours |
Funding Speed | As fast as 24 hours |
Loan Amount | Up to $5 million |
Estimated APR | 5% and up |
Repayment Term | 6 to 24 months |
Repayment Schedule | Daily, weekly, bimonthly, and monthly |
Loan Type | Term loan and line of credit |
Qualifications | |
Credit Score | 500 (550 for credit line) |
Time in Business | 6 months |
Annual Business Revenue | $120,000 |
Why We Like Clarify Capital
Clarify Capital is a loan broker with over 75 lenders in its network. The size of its network in combination with its low rates and flexible qualification requirements are why we chose it as the best option for businesses seeking multiple loan options.
Applying with a broker like Clarify Capital means you’ll have the opportunity to work with a dedicated loan advisor. This advisor will review your loan application and discuss your business circumstances to get a better understanding of the type of loan that may be best suited for your needs. Clarify Capital’s unsecured loan options include short-term business loans, business lines of credit, working capital loans, and merchant cash advances (MCAs).
Loan terms and qualification requirements will vary depending on which type of loan you apply for. While it’s also not guaranteed that you’ll get approved if you meet the minimum stated eligibility criteria, it does significantly improve your odds of getting funded.
Clarify Capital also offers secured loans, which include equipment financing, invoice financing, and SBA loans. You can complete an online application in under two minutes on Clarify Capital’s website.
QuickBridge: Best for Simple Application Process & Easy Documentation Requirements
Rates & Terms | |
Approval Time | As fast as 24 hours |
Funding Speed | As fast as 24 hours |
Loan Amount | $10,000 to $500,000 |
Estimated APR | Varies (factor rates as low as 1.11x) |
Repayment Term | 4 to 16 months |
Repayment Schedule | Daily and weekly |
Loan Type | Term loan |
Qualifications | |
Credit Score | 600 |
Time in Business | 6 months |
Annual Business Revenue | $250,000 |
Why We Like QuickBridge
If you’re looking for a simple application process that can be completed in a matter of minutes, you should strongly consider QuickBridge. Its required documentation will also be minimal for many businesses—it might exclude tax returns, profit and loss statements, balance sheets, and other financial statements that are common requirements of other lenders.
With QuickBridge, you’ll get to work with a dedicated loan advisor to ensure you pick the right type of loan for your business needs. QuickBridge also has a track record of excellent reviews from customers and carries an “A” rating from the Better Business Bureau (BBB)[1].
It offers a similar product to National Funding, a provider we discuss next. You’ll find that many of the loan terms and qualification requirements are the same, with eligible businesses being able to get up to $500,000 in funding for up to 16 months and factor rates as low as 1.11x.
To apply, you can visit QuickBridge’s website, where you could get approved and funded as quickly as 24 hours.
National Funding: Best Provider for Customer Service
Rates & Terms | |
Approval Time | As fast as 24 hours |
Funding Speed | As fast as 24 hours |
Loan Amount | $10,000 to $500,000 |
Estimated APR | Varies (factor rates as low as 1.11x) |
Repayment Term | 4 to 16 months |
Repayment Schedule | Daily and weekly |
Loan Type | Term loan |
Qualifications | |
Credit Score | 600 |
Time in Business | 6 months |
Annual Business Revenue | $250,000 |
Why We Like National Funding
With consistently high online customer reviews and an A+ rating with the BBB[2], it has a track record of consistently providing high levels of personalized customer service. It states that it has a large percentage of repeat customers who have reported a subsequent increase in revenue after taking advantage of its financing options.
Applications are reviewed on a case-by-case basis to improve your approval odds. After applying, you’ll be paired with a loan specialist to understand your business circumstances to recommend the best loan option for you.
The provider can also work with startups and businesses with bad credit, as long as your finances are strong. However, businesses should be aware that qualifying for its best advertised rates will require stronger credit and finances.
Additionally, meeting the minimum qualifications will not guarantee you’ll get approved for funding. With that being said, you do have the ability to save on fees by paying off your loan early, as the provider offers a discount of up to 7% on the remaining balance if a loan is fully repaid within the first 100 days.
To get started, you can visit National Funding’s website to submit an application.
Bluevine: Best Line of Credit for Established Businesses
Rates & Terms | |
Approval Time | As fast as 5 minutes |
Funding Speed | 24 hours |
Loan Amount | Up to $250,000 |
Estimated APR | 6.2% to 78% |
Repayment Term | 6 or 12 months |
Repayment Schedule | Weekly and monthly |
Loan Type | Line of credit |
Qualifications | |
Credit Score | 625 |
Time in Business | 24 months |
Annual Business Revenue | $480,000 |
Why We Like Bluevine
Bluevine offers a small business line of credit product with competitive rates and terms. It also made our list of the best working capital loans.
However, because its qualification requirements are more strict than many of the other providers in our guide, it may only be a good option for well-established businesses. In addition to the eligibility criteria listed above, you’ll need to have a business checking account, which you can learn more about through our review of Bluevine business checking.
One thing to note is that Bluevine calculates its rates as a simple interest rate. If you pay off your loan early, you could effectively be paying less interest than the estimated APR we’ve stated, which assumes you take the maximum loan amount but make only the minimum required payments for as long as the loan allows.
Bluevine offers both a weekly and monthly repayment option, but you’ll need to meet more strict criteria to qualify for the monthly payment plan. You’ll need a credit score of 700, a time in business of three years, and an annual revenue of $960,000. If you meet the minimum qualifications and are interested in applying, you can visit Bluevine’s website to submit an online application.
Credibly: Best for Short-term and Smaller Financing Needs
Rates & Terms | |
Approval Time | As fast as 4 hours |
Funding Speed | As fast as 24 hours |
Loan Amount |
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Estimated APR | Varies |
Repayment Term | 6 to 24 months (term loan) |
Repayment Schedule | Daily, weekly |
Loan Type | Term loan and line of credit |
Qualifications | |
Credit Score | 500 |
Time in Business | 6 months |
Annual Business Revenue | $180,000 |
Why We Like Credibly
Credibly offers term loans and lines of credit. Although these loans carry short repayment terms and lower maximum loan amounts than some of the other lenders in our guide, Credibly still made our list because it is startup-friendly and carries low credit score requirements.
It lists its general requirements for its loan programs, although certain criteria can vary from loan to loan. Credibly reviews applications on a holistic basis, taking things like your cash flow, operating expenses, financial statements, and business plan into account. The strength of your application can determine the rates and fees you’ll get.
In addition to flexible eligibility criteria, Credibly offers excellent customer service and fast funding speeds. It currently has a 4.8-star rating on Trustpilot[3] and states that you can receive funds in your account in as little as 24 hours following a loan approval.
To get started, you can visit Credibly’s website to get pre-qualified.
American Express: Best Credit Line for Low-revenue Businesses
Rates & Terms | |
Approval Time | As fast as 24 hours |
Funding Speed | 24 to 72 hours |
Loan Amount | $2,000 to $250,000 ($150,000 for new customers) |
Estimated APR | Varies |
Repayment Term | 6, 12, 18, or 24 months |
Repayment Schedule | Monthly |
Loan Type | Line of credit |
Qualifications | |
Credit Score | 660 |
Time in Business | 12 months |
Annual Business Revenue | $36,000 |
Why We Like American Express
If you are a newer business and have not yet generated a high volume of sales, an American Express small business line of credit could be right for you. In addition to competitive rates, the provider requires 12 months’ time in business and $36,000 in annual revenue to be eligible.
Other qualification requirements include a credit score of 660 and a valid business checking account, which you can learn about via our American Express business checking review. Instead of a traditional interest rate, American Express charges monthly fees that vary based on your loan term and business qualifications. You’ll see the following range of fees:
- 3% to 9% monthly fee for six-month loans
- 6% to 18% monthly fee for 12-month loans
- 9% to 27% for 18-month loans
- 12% to 18% for 24-month loans
American Express does not charge any origination fee or prepayment penalties. To apply, visit the provider’s website, where you could receive funding as quickly as 24 to 72 hours after submitting a completed application.
1West: Best for Startups and Businesses With Bad Credit
Rates & Terms | |
Approval Time | As fast as 6 hours |
Funding Speed | 48 hours |
Loan Amount | $5,000 to $1 million |
Estimated APR | 8% and up |
Repayment Term | 2 to 24 months |
Repayment Schedule | Daily, weekly, and monthly |
Loan Type | Term loan |
Qualifications | |
Credit Score | 500 (550 recommended) |
Time in Business | 3 months (6 months recommended) |
Annual Business Revenue | $120,000 |
Why We Like 1West
1West offers a competitive combination of low rates, excellent customer service, and flexible qualification requirements. It also has easy requirements for time in business and credit score. For those reasons, we selected it as a good fit for startups and companies with bad credit.
While 1West’s website states that up to $1 million in funding is available, getting unsecured financing above $500,000 can be particularly challenging without strong qualifications. Additionally, we received information directly from the company confirming that its best rates generally start as low as 8%, despite the fact that its website displays rates as low as 18%.
To be eligible for a loan, you’ll need to have a minimum credit score of 500, with three months’ time in business and annual revenue of $120,000. However, you’ll have much higher approval odds with a credit score of 550 and at least six months’ time in business.
1West has a network of over 50 different lenders, and depending on who you get matched with, you may also be eligible for an early payoff discount for your loan. To apply, visit the 1West website, where applications can be completed in just several minutes.
How We Chose the Best Unsecured Business Loans
Our selection of the best unsecured business loans was based on the following criteria:
- Interest rates and estimated APRs
- Loan fees and available early payoff discounts
- Application, approval, and funding speed
- Minimum credit score, time in business, and revenue requirements
- Types of loans offered
- Maximum loan amount and repayment terms
- Customer reviews and ratings
Alternatives to Unsecured Business Loans
Unsecured business loans tend to have higher rates and fees compared to secured loans where collateral is pledged. This is because from a lender’s perspective, a secured loan gives it the ability to recoup some of its losses in the event you default. If you’re looking for a cheaper alternative to an unsecured loan, then consider the following alternatives.
- Small business credit cards: A business credit card can be easier to get and can also be useful for covering small to medium expenses. Credit limits generally range from $5,000 to $50,000, and many have an introductory period offering a lower interest rate as well as a rewards program to reduce the effective cost of your business expenses. For options, see our top-recommended small business credit cards.
- SBA loans: SBA loans can offer some of the most competitive rates on the market. However, you’ll generally need excellent credit and strong business finances to qualify. Head over to our guide covering the best SBA lenders.
- Rollover for business startups (ROBS): A ROBS allows you to access your retirement accounts tax- and penalty-free. It’s not a loan, so you won’t be paying interest charges. However, due to the complexity of a ROBS and the potential for fines and penalties if done incorrectly, we recommend paying for the services of a ROBS provider to walk you through the process. We recommended a few companies in our list of the leading ROBS providers.
Frequently Asked Questions (FAQs)
An unsecured business loan is a loan that does not require any collateral to be pledged in exchange for funding. Secured loans, by comparison, require borrowers to pledge collateral before loan proceeds can be disbursed. Pledging collateral gives the lender the right to take possession of it in the event of a default.
Yes. Any loan that does not require collateral can be considered an unsecured loan. Common examples can include term loans, working capital loans, business lines of credit, invoice factoring, and merchant cash advances.
If you miss payments on an unsecured loan, creditors will typically first report late payments to the credit bureaus, something that will negatively impact your credit scores. If you agreed to personally guarantee the loan, lenders could go after your personal assets to try and recoup their financial losses.
Bottom Line
An unsecured business loan won’t require you to pledge any collateral in exchange for funding. However, rates and fees will tend to be higher than a secured loan. Consider alternative financing options to ensure this is the right type of loan for you and shop multiple lenders to get the best rate possible.
User review resources:
[1]BBB | QuickBridge
[2]BBB | National Funding
[3]Trustpilot | Credibly