Best Unsecured Business Loans From Our Partners
Best Unsecured Business Loans From Our Partners
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Pros
- Cash can be available quickly.
- Get a discount for prepaying.
- No collateral required.
- Low minimum credit score requirement.
Cons
- Charges a factor rate that makes it more difficult to compare costs with other lenders.
- Can’t build business credit.
- Longest loan term is 18 months.
- Charges an origination fee.
Fora Financial - Online term loan
Best for borrowers with bad credit
Pros
- Cash can be available quickly.
- Get a discount for prepaying.
- No collateral required.
- Low minimum credit score requirement.
Cons
- Charges a factor rate that makes it more difficult to compare costs with other lenders.
- Can’t build business credit.
- Longest loan term is 18 months.
- Charges an origination fee.
Accion Opportunity Fund Small Business Working Capital Loan
Best for women- and minority-owned businesses
Pros
- Loan amounts from $5,000 to $250,000.
- Customized loan terms.
- No prepayment penalty.
Cons
- Slower processing speed compared with online lenders.
- Charges an origination fee.
- Not available in all U.S. states.
Accion Opportunity Fund Small Business Working Capital Loan
Best for women- and minority-owned businesses
Pros
- Loan amounts from $5,000 to $250,000.
- Customized loan terms.
- No prepayment penalty.
Cons
- Slower processing speed compared with online lenders.
- Charges an origination fee.
- Not available in all U.S. states.
Pros
- Bank loan with competitive interest rates.
- No collateral required.
- Bank of America’s Preferred Rewards program can offer interest rate discounts and other perks.
Cons
- Can be slow to fund.
- Prepayment fees may apply to early repayments.
- Must be an existing Bank of America customer to apply online.
- Charges an origination fee.
Bank of America Business Advantage Unsecured Term Loan
Best for long-term loans
Pros
- Bank loan with competitive interest rates.
- No collateral required.
- Bank of America’s Preferred Rewards program can offer interest rate discounts and other perks.
Cons
- Can be slow to fund.
- Prepayment fees may apply to early repayments.
- Must be an existing Bank of America customer to apply online.
- Charges an origination fee.
Pros
- Cash can be available within the same business day (does not apply in California or Vermont).
- Accepts borrowers with a minimum credit score of 625.
- Streamlined application process with minimal documentation required.
- Can be used to build business credit.
Cons
- Cannot fund North Dakota-based businesses.
- Requires frequent (daily or weekly) repayments.
- Interest rates can be high compared with traditional lenders.
- Charges origination fee.
OnDeck - Online term loan
Best for short-term loans
Pros
- Cash can be available within the same business day (does not apply in California or Vermont).
- Accepts borrowers with a minimum credit score of 625.
- Streamlined application process with minimal documentation required.
- Can be used to build business credit.
Cons
- Cannot fund North Dakota-based businesses.
- Requires frequent (daily or weekly) repayments.
- Interest rates can be high compared with traditional lenders.
- Charges origination fee.
Pros
- Flexible qualification requirements.
- No prepayment penalties.
- Funds available by next business day after approval.
Cons
- Most borrowers are subject to a 2% draw fee.
- Not available in all U.S. states.
Headway Capital - Line of credit
Best for flexible qualifications
Pros
- Flexible qualification requirements.
- No prepayment penalties.
- Funds available by next business day after approval.
Cons
- Most borrowers are subject to a 2% draw fee.
- Not available in all U.S. states.
Pros
- Financing available within one business day after approval.
- Simple application with minimal documentation required.
- Low minimum credit score, time in business and annual revenue requirements.
- No prepayment penalties, account maintenance fees or inactivity fees.
Cons
- Rates are high compared with traditional banks.
- Weekly repayments required over a short term (maximum of 24 weeks).
Fundbox - Line of credit
Best for startups
Pros
- Financing available within one business day after approval.
- Simple application with minimal documentation required.
- Low minimum credit score, time in business and annual revenue requirements.
- No prepayment penalties, account maintenance fees or inactivity fees.
Cons
- Rates are high compared with traditional banks.
- Weekly repayments required over a short term (maximum of 24 weeks).
Pros
- Cash can be available within 12 to 24 hours.
- Can be used to build business credit.
- Low minimum credit score requirement.
Cons
- Requires weekly payments.
- Not available in North Dakota, South Dakota or Nevada.
- Rates can be high compared with traditional lenders.
Bluevine - Line of credit
Best for fast loans
Pros
- Cash can be available within 12 to 24 hours.
- Can be used to build business credit.
- Low minimum credit score requirement.
Cons
- Requires weekly payments.
- Not available in North Dakota, South Dakota or Nevada.
- Rates can be high compared with traditional lenders.
A closer look at our picks for the best unsecured business loans
Fora Financial: Best for borrowers with bad credit
with Fundera by NerdWallet
Cash can be available quickly.
Get a discount for prepaying.
Low minimum credit score requirement.
Charges a factor rate that makes it more difficult to compare costs with other lenders.
Can’t build business credit.
Longest loan term is 18 months.
Charges an origination fee.
- You have bad personal credit.
- You want a discount for prepaying your loan.
- Your annual revenue is less than $240000.
- You want to build business credit.
Accion Opportunity Fund: Best for women- and minority-owned businesses

with Fundera by NerdWallet
with Fundera by NerdWallet
Loan amounts from $5,000 to $250,000.
Customized loan terms.
No prepayment penalty.
UCC lien filed for loans greater than $50,000.
Slower processing speed compared with online lenders.
Not available in all U.S. states.
- You have bad personal credit.
- You’re a women-, minority- or veteran-owned business.
- You want funding in less than one week.
- You have less than12months in operation.
Bank of America: Best for long-term loans
with Fundera by NerdWallet
Bank loan with competitive interest rates.
Bank of America’s Preferred Rewards program can offer interest rate discounts and other perks.
Can be slow to fund.
Prepayment fees may apply to early repayments.
Must be an existing Bank of America customer to apply online.
Charges an origination fee.
- You have strong personal credit and at least24months in business.
- You want to build business credit.
- You’re a startup or have a lower credit score.
- You need fast access to funds.
OnDeck: Best for short-term loans
with Fundera by NerdWallet
Cash can be available within the same business day (does not apply in California or Vermont).
Accepts borrowers with a minimum credit score of 625.
Streamlined application process with minimal documentation required.
Can be used to build business credit.
Cannot fund North Dakota-based businesses.
Requires frequent (daily or weekly) repayments.
Interest rates can be high compared with traditional lenders.
Charges origination fee.
- You need access to funds in just a few days.
- You want to build business credit.
- You want a monthly repayment schedule.
- You have less than12months in business.
Headway Capital: Best for flexible qualifications
with Fundera by NerdWallet
Flexible qualification requirements.
No prepayment penalties.
Funds available by next business day after approval.
Most borrowers are subject to a 2% draw fee.
Not available in all U.S. states.
- You have at least6months in business.
- You have bad personal credit.
- You want fast access to working capital.
- You need more than $100000in funding.
- You want to build business credit.
- You don’t want to pay a draw fee on your credit line.
Fundbox: Best for startups
with Fundera by NerdWallet
Financing available within one business day after approval.
Simple application with minimal documentation required.
Low minimum credit score, time in business and annual revenue requirements.
No prepayment penalties, account maintenance fees or inactivity fees.
Rates are high compared with traditional banks.
Weekly repayments required over a short term (maximum of 24 weeks).
- You need funding within a few days.
- You want to build business credit.
- You need more than $250000in business capital.
- You don’t have the cash flow to support weekly payments.
Bluevine: Best for fast loans
with Fundera by NerdWallet
Cash can be available within 12 to 24 hours.
Can be used to build business credit.
Low minimum credit score requirement.
Requires weekly payments.
Not available in North Dakota, South Dakota or Nevada.
Rates can be high compared with traditional lenders.
- You need fast access to working capital.
- You want to build business credit.
- You’re a brand-new or pre-revenue business.
- You want to repay funds over a long period of time.
What is an unsecured business loan?
Types of unsecured business loans
Business term loans
Business lines of credit
Invoice factoring
Merchant cash advance
How to get an unsecured business loan
1. Determine your financing needs
2. Evaluate your business’s qualifications
3. Compare lenders
🤓 Nerdy Tip
Keep an eye out for predatory lenders that take advantage of borrowers — particularly borrowers who have poor credit or urgent funding needs — with unfair or misleading loan terms. To avoid these lenders and scams, look for transparent terms and rates and avoid lenders that pressure you to act quickly or have terms that seem too good to be true.4. Submit an application
- Basic information about you and your business.
- Business and personal tax returns.
- Business and personal bank statements.
- Financial statements.
How to compare unsecured business loans
- Loan amount. Some lenders may not offer the amount you were hoping for. If you borrow less than what you need to fund your business goals, you may risk falling short of revenue targets, making it harder to pay off the loan.
- Interest rate and fees. These can vary widely across lenders. That’s why it’s best to compare each loan offer’s APR, which includes both the interest rate and any upfront fees. You can also use our business loan calculator to compare total costs across the life of each loan.
- Guarantee requirements. While you’re not required to put up a specific business asset as collateral for unsecured loans, you’ll likely be asked to guarantee the loan via a personal guarantee and/or Uniform Commercial Code lien instead. Make sure you know what you’re risking before putting pen to paper.
- Repayment terms. How long you have to repay your loan and how often you’re required to make payments all vary from lender to lender. Make sure your business has enough positive cash flow before committing to frequent payment terms or shorter-term loans. And don’t forget to ask about prepayment penalties — these are fees some lenders charge when you make additional payments.
Pros and cons of unsecured business loans
Fast access to funds.
Physical collateral not required.
Startups and borrowers with bad credit may qualify.
APRs typically higher than secured business loans.
Personal guarantee or UCC lien likely required.
Less desirable terms (e.g., lower loan amounts, shorter repayment terms).
Alternatives to unsecured business loans
- SBA loans. If you only need $50,000 or less in financing, an SBA 7(a) small loan, SBA Express loan or SBA Export Express loan may not require collateral. But if you need more than that, an SBA lender may require collateral. Read more about SBA loan collateral requirements.
- Personal loans. If you have strong personal credit and don’t need a lot of money, an unsecured personal loan may help you get funds for your business without putting up collateral.
- Business credit cards. For newer businesses without collateral, steady revenue or an extensive track record, business credit cards can help manage small, daily expenses or unexpected costs. Just keep in mind that high interest costs can add up quickly if you carry a balance.
- Small-business grants. Although they can be competitive and may not fully cover your funding needs, grants provide free money for those who qualify. NerdWallet includes a large list of small-business grants to help you get started.
Best unsecured business loans, in summary
Frequently asked questions
Methodology
Wondering if you qualify?
It’s possible to get a business loan even if you have bad credit. Bad-credit business loans are available from alternative sources, like online or nonprofit lenders.