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Best unsecured business loans in July 2025

Updated July 11, 2025

What to know first: Unsecured business loans can get you quick funding without the need for collateral. Since unsecured business loans don’t require collateral, you can get fast funding without putting your house or equipment on the line – at the cost of higher interest rates and tougher approval terms. Here are Bankrate’s top, expert-backed picks for unsecured business loans.

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Bluevine: Best for fast funding
4.3
Interest rate
Starting at 7.80%
Max loan amount$5k-$250K
Fastest funding1 business day
Term length6 - 12 months
Customer score
4.3
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on BusinessLoans.com

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Fundbox: Best for short-term loans
4.3
Interest rate
Starting at 4.66%
Max loan amount$1k-$150K
Fastest funding1 business day
Term length3 - 6 months
Customer score
4.2
Apply nowArrow Right

on BusinessLoans.com

Bank of America: Best for Preferred Rewards members
4.1
Interest rate
Starting at 8.50%
Max loan amount$10k-$200K
Fastest fundingN/A
Term length12 - 60 months
Customer score
4.1
Wells Fargo Business: Bankrate 2025 Award Winner Best small business lender for good-to-excellent credit
4.2
Interest rate
10.00- 18.00%
Max loan amount$10k-$150K
Fastest fundingN/A
Term length3 - 24 months
Customer score
4.3
SMB Compass: Best for loan variety
4.6
Interest rate
Starting at 7.99%
Max loan amount$10k-$5M
Fastest funding1 business day
Term length6 - 6 months
Customer score
4.3
OnDeck: Bankrate 2025 Award Winner Best lender for startups
4.5
Interest rate
Starting at 35.90% APR
Max loan amount$6k-$100K
Fastest funding1 business day
Term length12 - 24 months
Customer score
4.1
Apply nowArrow Right

on BusinessLoans.com

How Bankrate works

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01

Compare lenders

Our team researched the best business loan options available so you can compare business lines of credit.

02

Let us know what you are looking for

Click the ‘See personalized rates’ button next to the provider of your choice and provide us with a little information about what type of loan you’re looking for.

03

Get matches and receive funding

Choose a loan from a Bankrate partner and receive your funds if you qualify.

A closer look at Bankrate's top unsecured business loans

In the section below, we’ll explore Bankrate’s pick of lenders featured in the table more thoroughly. If your business meets the requirements of several lenders, looking closer at each can help you make the right decision. Bankrate’s closer look provides more information about each lender, why we chose its superlative and any standout features of the lender.

Badge Icon

Best for fast funding: Bluevine

Bluevine focuses on supporting small businesses with business lines of credit up to $250,000. It offers low simple interest rates starting at 7.80 percent, and you won’t get charged a monthly fee for keeping the line open. Plus, Bluevine can approve your funding within 24 hours, helping you get access to cash fast when you need it.

Fast funding
Low interest rates
Rating: 4.3 stars out of 5
4.3
Interest rate
Starting at 7.80%
Max loan amount
$5k–$250k
Min credit score
625
Time in business
24+ months

Pros and cons

Pros
  • Fast funding time
  • Open to fair-credit borrowers
  • Minimal fees
× Cons
  • High annual revenue requirement
  • Short repayment terms
  • Unavailable in three states
Badge Icon

Bankrate 2025 Award Winner Best lender for startups: OnDeck

OnDeck is an ideal lender for startups because it accepts businesses with just one year in business and a fair credit score. It offers both a term loan up to $250,000 and line of credit up to $100,000 – and you can get funding the same day you apply. Plus, enjoy flexible terms up to 24 months.

Fast funding
Rating: 4.5 stars out of 5
4.5
Interest rate
Starting at 35.90% APR
Max loan amount
$6k–$100k
Min credit score
625
Time in business
12+ months

Pros and cons

Pros
  • Same-day funding
  • Reports to credit bureaus
  • Open to fair credit borrowers
× Cons
  • High annual percentage rates (APRs)
  • Not available in all 50 states
  • Loan origination fees
Badge Icon

Best for short-term loans: Fundbox

Fundbox specializes in business lines of credit up to $150,000 with low eligibility requirements. You can apply with as little as three months in business and $30,000 in annual revenue, lenient even for an online lender. Plus, you won’t have to worry about prepayment fees if you pay off the loan early, so you can save money on borrowing costs.

Fast funding
Low interest rates
Rating: 4.3 stars out of 5
4.3
Interest rate
Starting at 4.66%
Max loan amount
$1k–$150k
Min credit score
600
Time in business
6+ months

Pros and cons

Pros
  • Funds available quickly
  • Low minimum credit score requirement
  • Available to newer companies
× Cons
  • Low maximum loan limit
  • Repayment periods are short
  • Can’t build business credit
Badge Icon

Best for Preferred Rewards members: Bank of America

Bank of America offers a unique Preferred Rewards for Business program that offers perks when using its business products. You can enjoy no monthly maintenance fees on business checking and savings accounts, boosted rewards when using business credit cards and a 25 percent discount on lines of credit, term loans, secured loans and more.

Low interest rates
Rating: 4.1 stars out of 5
4.1
Interest rate
Starting at 8.50%
Max loan amount
$10k–$200k
Min credit score
700
Time in business
24+ months

Pros and cons

Pros
  • Plenty of loan options
  • Low interest rates
  • Free business credit report
× Cons
  • Limited options if you have poor credit
  • Limited information on website
  • Slow application process
Badge Icon

Bankrate 2025 Award Winner Best lender for good-to-excellent credit: Wells Fargo Business

Wells Fargo works well for businesses looking for lines of credit or SBA loans with a strong credit profile. If you’re in the market for a line of credit, Wells Fargo’s credit lines cater to businesses in every stage, from startups with less than two years in business to well-established businesses making millions. Wells Fargo is also an SBA Preferred Lender, helping you get an SBA loan with a streamlined approval process.

Rating: 4.2 stars out of 5
4.2
Interest rate
Max loan amount
$10k–$150k
Min credit score
680
Time in business
24+ months

Pros and cons

Pros
  • Multiple lines of credit
  • Low interest rates
  • No collateral needed
× Cons
  • 680 credit score typically required
  • $100,000 limit for online applications
  • High annual fee for high-limit lines
Badge Icon

Best for loan variety: SMB Compass

SMB Compass offers a suite of business loan products to help you get matched with the right loan to suit your needs. You can choose from a business line of credit, equipment financing, term loan, invoice factoring, SBA loan and more. And SMB Compass boasts wide-ranging loan amounts from $10,000 to $10 million.

Fast funding
Low interest rates
Rating: 4.6 stars out of 5
4.6
Interest rate
Starting at 7.99%
Max loan amount
$10k–$5000k
Min credit score
600
Time in business
6+ months

Pros and cons

Pros
  • Offers nine types of business loans
  • Fast funds and long repayment terms
  • High maximum loan limits
× Cons
  • Steep revenue requirement for term loans
  • Some options take a week to fund
  • Factor rates may apply to some loans

How Bankrate chooses our best unsecured business loan lenders

Bankrate's trusted small business loan industry expertise

57

years in business

30

lenders reviewed

22

loan features weighed

770

data points collected

To choose the best unsecured business loans, we ensured all loans featured are broadly available across the United States and require no collateral. We then considered features that make loans affordable and accessible to businesses with different characteristics and needs, including interest rates, credit score requirements, minimum annual revenue and fees.
 
When evaluating lenders, we use a 22-point scale to measure quality in five key areas:

How to get an unsecured business loan with Bankrate

An unsecured business loan can be the pathway to quickly funding your business goals. Let Bankrate walk you through applying and getting approved.

Decide if you want a secured or unsecured business loan

Unsecured business loans can provide a speedy way to get business funds quickly, as they don’t require the appraisal of collateral that comes with secured loans. The requirements tend to be stricter, however, as the loan is seen as riskier to lenders. Your credit score and revenue will have to be on the higher end, and lenders may not offer an unsecured loan to newer or riskier businesses. 

In place of collateral, lenders typically require you and other business owners to sign a personal guarantee, which makes anyone who signs it personally liable for the business debt. If your business fails to repay your unsecured loan, you are legally responsible for paying it. Lenders may take you to court to seize any personal assets, such as your house or car, to help pay off the debt.

You may want to consider getting an unsecured business loan if:

  • You don’t want or have assets to put up as collateral. This can happen if business relies mainly on inventory and you don't have any real estate or equipment to offer for collateral, or if you prefer not to put your assets at risk.
  • You have a good credit score and history. Lenders will often have higher credit requirements for unsecured loans.
  • You have a solid revenue stream. Having an established annual revenue can tell lenders how much of a weekly, monthly or quarterly payment you can afford.
  • You need funding fast. Unsecured loans can have shorter approval times since you don’t need to have your assets assessed.
  • You don’t mind a higher interest rate. Unsecured business loans often come with higher rates.
To protect your finances and credit with an unsecured business loan, be sure to borrow only what you need and can comfortably afford to repay.
Bankrate logo Thomas Brock: CFA, CPA

Pros and cons of unsecured business loans

Business loans without collateral have advantages and disadvantages.
 

Pros

  • No collateral: You don’t need to put business, equipment or real estate up for risk of repossession.
  • Potentially fast funding: Your application may be approved more quickly without the need to assess your assets.
  • Accessible to a variety of borrowers: Some types of unsecured small business loans are accessible even with bad credit.

Cons

  • Often more expensive: Lenders often charge higher fees and interest rates to compensate for their increased risk
  • May have strict eligibility requirements: Without collateral to secure the loan, lenders will be strict about who they approve for certain types of unsecured business loans
  • May require a personal guarantee: Some lenders ask you to offer a personal guarantee before approving the loan

What is an unsecured business loan and how does it work?

Unsecured loans can get you business funds more quickly - at a price. Here’s what to know.

Learn more

Calculate how much debt your business can handle

Unsecured business loans can come with higher borrowing costs than secured loans, limiting how much you can borrow. As well, lenders will have high standards for revenue and how consistently you can make the monthly payments. 

As a rule of thumb, you shouldn’t borrow more than 36 percent of your annual income, which means that for every $100,000 you make, you should only borrow a total of $36,000. Lenders will look at any other business debts when they look at your application, so keep this in mind. 

Something else to account for is the monthly or weekly payment. Make sure that you only take on a payment that your business’ revenue can handle so that you don’t fall behind. 

For example, if you’re comfortable with a $2,500 monthly payment on a 10-year, 8 percent APR unsecured loan, then the most you’ll be able to borrow is $123,296. 

You can use a loan calculator to determine how much you want to borrow and how much you’ll pay based on your balance and interest. 

Loan Calculator

Estimated monthly payment
$92.22
Total loan amount paid
$5,000.00
Total interest paid
$592.91
Total cost of loan
$5,592.91
Principal amount
Total interest paid

Make sure you meet requirements

To qualify for most unsecured business loans, you’ll need to meet a few eligibility requirements. Since unsecured small business loans don’t require you to put your business or other assets up for collateral, it’s a riskier proposition for lenders.

To prove you pose a low risk to the lender, lenders may have strict eligibility requirements for certain types of unsecured business loans. You’ll likely need good-to-excellent credit, at least two years’ time in business and a high annual revenue. In addition, the lender may charge you a higher interest rate.

Common requirements include:

  • Revenue. Your company must earn enough money to make payments on the new loan.
  • Current debts. If you have too much debt and most of your revenue goes towards existing debt, lenders won’t give you a new loan that you’ll struggle to pay.
  • Time in business. Startups are risky, so many lenders want your company to have been operating for six months to two years before applying for a loan.
  • Credit score. Lenders will look at both your business and personal credit score. They may set a minimum personal credit score of 600 or higher to get approved.
  • Industry. Some lenders refuse to lend to companies in certain industries like gambling or refuse loans to businesses in high-risk industries.

Documents for an unsecured business loan

Common documents required for an unsecured business loan include:

  • Business plan
  • Business license
  • Employer identification number (EIN)
  • Recent personal and business tax returns
  • Recent bank statements
  • Proof of business insurance
  • Payroll records
  • List of accounts payable and accounts receivable
  • Business financial statements (i.e., balance sheet, profit and loss statement)Commonly required documents Types of unsecured business loans

 


Documents you'll need to apply for an unsecured business loan

Unsecured business loans can come with stricter requirements than secured loans. Here are the documents you’ll need to be approved.

Learn more

Prequalify through Bankrate

When shopping for loans, consider prequalifying with us. Bankrate offers multiple benefits if you decide to prequalify on our site, including:

  • Instant prequalification based on your credit profile
  • Compare multiple lenders at once instead of one lender at a time
  • No hard checks
  • Get expert insights based on unbiased reviews and analyses 
  • Access loan information and applications in one place
  • Build a profile you can access later in the process

 

If your most important deciding factor is... ...then you should consider
Interest rate A low-interest loan, which is typically offered by online lenders or an SBA loan, which has a fixed interest rate
Funding flexibility A business line of credit, which offers revolving cash withdrawal instead of lump sum borrowing.
High amounts A term loan, which offers higher loan limits based on revenue and credit history.
Low amounts A line of credit, which can offer lower and more flexible funding or an SBA microloan, which offers funding under $50,000
Ease of approval A merchant cash advance or invoice financing, which are based on cash flow instead of credit history.
Speed of approval An unsecured loan from an online lender, which can come with approval in minutes.

Choosing the right lender

Selecting a lender will depend on what you’re looking for in a loan and lending relationship. The right lender can make a major difference in how you navigate applying for, qualifying for and repaying your loan, so be sure to shop around. 

When considering a lender, you’ll want to think about the following factors:

  • Loan rates and fees. Some lenders will offer lower interest rates or limited fees. 
  • Product offerings. Lenders can have a wide variety of loan products, such as lines of credit, equipment loans or business credit cards. 
  • Requirements. Different lenders can have stricter or more relaxed borrowing requirements. 

  • Speed of approval. Some lenders will offer approval in less than 24 hours. 

  • Customer service. Some lenders can offer features such as personalized loan matching, 24/7 customer service or a mobile app. 

While lenders will differ in their offerings and approaches, different types of lenders can offer different pros and cons. 

Bankrate can help you find the right lender by allowing you to compare rates, fees, limits and requirements all in one place. Use our loan calculator to get started and get matched with the best lender for your needs. 

How to manage an unsecured business loan

In a chaotic business landscape, staying on top of your repayments is crucial to maintaining your loan and your credit history. Here’s how.

Learn more

Frequently asked questions about unsecured business loans