4 Best Unsecured Business Loans of 2024
An unsecured business loan allows you to access financing for your business without providing collateral, like business equipment, real estate or cash. Generally, lenders offer this type of loan based on your credit health and business history. You can use an unsecured loan to support your small business in many ways, from getting cash for inventory purchases to covering payroll.
CNBC Select analyzed small business loan lenders to determine which unsecured business loans are best for different needs. (See our methodology for more information on how we made this list.)
Best for variety of financing options
Credibly
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Types of loans
Long-term loans, working capital loans, business line of credit and merchant cash advance
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Better Business Bureau (BBB) rating
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Loan amounts
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Terms
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Minimum credit score needed
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Minimum requirements
Must have been in business for at least six months and have average monthly revenue of at least $15,000
Pros
- Offers multiple options for small business financing
- Can get approved within four hours
- Low minimum credit score requirement
- Provides loan amounts of up to $600,000
- Funds deposited as soon as the same business day
- Considers overall business health as an approval criteria
Cons
- Requires an average monthly revenue of at least $15,000
Who’s this for? Credibly offers multiple business loan options to suit a multitude of needs. You can potentially choose from a merchant cash advance, a term loan and a business line of credit. With a credit score requirement of just 500, it’s also a great pick for those with lower credit scores.
Standout benefits: Same-day funding is available for certain types of financing. Plus, you can pre-qualify without a hard credit pull and see if you’re approved in less than four hours.
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Best for line of credit
BlueVine Business Line of Credit
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Annual Percentage Rate (APR)
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Loan amounts
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Terms
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Credit needed
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Early payoff penalty
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Maintenance fees
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Late fee
5% of the missed repayment (minimum of $35)
Pros
- Open to borrowers with fair credit (minimum 625 score)
- High loan maximum
- Quick funding
- Few fees
- Option to pay monthly or weekly
Cons
- Requires at least 24 months in business which may not suit newer businesses
- Requires at least $40,000 in monthly revenue
- Not available for all industries or in all states
Who’s this for? A business line of credit might be a better choice if you prefer a credit line you can borrow against when you need it. Bluevine provides business credit lines of up to $250,000 — and you may qualify for a credit limit increase as your business grows. It considers applicants with credit scores as low as 625.
Standout benefits: Bluevine doesn’t charge any fees for opening, maintaining or closing a business line of credit. There are also no penalties for prepayment. The application process is quick, and you can receive the funds within hours if you opt for the bank wire option.
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Best for short-term loans
Funding Circle
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Types of loans
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Better Business Bureau (BBB) rating
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Loan amounts
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Terms
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Minimum credit score needed
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Minimum requirements
In business at least 2 years, no bankruptcies within the last 7 years
Pros
- Top-tier A+ rating with the BBB
- No prepayment penalties
- Funding in as little as 48 hours
Cons
- You have to be in business at least 2 years to qualify
Who’s this for? With a term loan from Funding Circle, you can get funds for almost any business purpose and receive money within two business days. You may be able to borrow as much as $500,000. Plus, the lender doesn’t have a minimum revenue requirement. Note, however, that Funding Circle also provides secured loans — and long-term loans (those longer than three years) may require collateral. For that reason, we recommend this lender for shorter term lengths.
Standout benefits: With Funding Circle, you can see if you qualify without a hard credit check. If you’re approved, you can get the funds in two days. Additionally, the lender charges no prepayment penalties.
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Best for microloans
Kiva
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Types of loans
Peer-to-peer crowdfunded loan
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Better Business Bureau (BBB) rating
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Loan amounts
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Terms
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Minimum credit score needed
No minimum credit score required
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Minimum requirements
You must be 18, live in the U.S., use this loan for business purposes, not currently in foreclosure, bankruptcy or have any liens, and have a small number of your friends and family willing to make a loan to you (Nevada and North Dakota residents are not ineligible)
Pros
- Ability to borrow with no interest
- Loans are geared toward borrowers who are unbanked and have trouble qualifying for financial products
- Ability to market your product to 1.6 million lenders on Kiva
Cons
- You need to prove your creditworthiness by inviting friends and family to lend to you
- It can take a while to receive your loan since investors need to raise money
- No BBB rating
Who’s this for? Kiva can be an excellent option if you need to borrow less than $15,000. This crowdfunding platform is an especially good solution for a young business, since it offers a 0% interest rate and allows you to demonstrate your creditworthiness by inviting friends and family to lend to you.
Standout benefits: Kiva doesn’t have traditional business and credit score requirements.
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More on our top unsecured business loans
Credibly
Loan amounts
$5,000 to $600,000
Eligibility requirements
Requirements may vary, but you’ll typically need six months in business, a credit score of 500 or higher and an average monthly revenue of at least $15,000.
Repayment schedule
Daily, weekly or monthly
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Bluevine
Loan amounts
Up to $250,000 for credit lines
Eligibility requirements
A 625 personal FICO score, 24 months in business, at least $40,000 in monthly revenue, a business operating or incorporated in an eligible U.S. state
Repayment schedule
Fixed monthly or weekly payments over six or 12 months for each draw
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Funding Circle
Loan amounts
$25,000 to $500,000
Eligibility requirements
620 FICO score, at least two years in business, no personal bankruptcies within the last seven years, a business that doesn’t operate in select industries, including nonprofit organizations, weapons manufacturers, speculative real estate, gambling businesses, marijuana dispensaries and pornography
Repayment schedule
Bi-weekly or monthly payments
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Kiva
Loan amounts
Up to $15,000
Eligibility requirements
You must be over 18 years old and using the loan for business purposes. You and your business must be based in the United States. Your business must not be engaged in multi-level marketing or direct sales, illegal activities or financial investing. You also can’t be in foreclosure, bankruptcy or under any liens. Finally, you’ll need to invite a small number of your friends and family to make a loan to you to prove your creditworthiness.
Repayment schedule
Not advertised
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FAQs
How do you qualify for an unsecured business loan?
To qualify for an unsecured business loan, you’ll typically need to meet revenue and credit requirements, which vary by lender and loan type.
Can a business borrow money without collateral?
It’s possible to get a business loan without collateral, but unsecured loans often come with stricter approval requirements.
How hard is it to get an unsecured business loan?
You’ll typically need to have an established business and solid credit to get an unsecured business loan — otherwise, it may be challenging to get approved.
Can I get a business loan with a 500 credit score?
It’s possible to find a lender who works with borrowers with bad credit — however, you may find it easier to qualify for a secured business loan.
Bottom line
An unsecured business loan is a popular financing option since it doesn’t require collateral. This type of financing can help with many business needs, but you’ll probably need to demonstrate healthy credit and revenue to get approved. Make sure to pre-qualify with a few lenders to ensure you’re getting the most favorable terms.
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Why trust CNBC Select?
At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every business loan review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of business loan products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics. See our methodology for more information on how we choose the best unsecured business loans.
Our methodology
To determine which unsecured small business loans offer the best financing terms, CNBC Select analyzed a dozen U.S. loans offered by both online and brick-and-mortar lenders.
We compared each small business loan on a range of features, including:
- Minimum and maximum loan amounts
- Length of term
- Credit score needed
- Application requirements
- Streamlined application process
- Fund disbursement
- Customer support
- Better Business Bureau rating
- Customer reviews, when available
The rates and fee structures for small business loans are subject to change without notice, and they often fluctuate in accordance with the prime rate. However, once you accept your loan agreement, a fixed-rate APR will guarantee that the interest rate and monthly payment will remain consistent throughout the entire term of the loan. Your APR, monthly payment and loan amount depend on your credit history and creditworthiness.
To take out a small business loan, lenders will most likely conduct a hard credit inquiry and request a full application, which could require both personal and business proof of income, identity verification, proof of address and more.
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Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.
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