Best Unsecured Business Loans

Fundbox’s line of credit offering makes the list thanks to its extremely flexible options for new businesses. Along with needing only six months in business, prospective customers with less-than-perfect credit are also eligible for Fundbox’s funds. A personal credit score minimum of just 600 is needed to qualify, making this one of the best unsecured business loans for borrowers with bad credit.

Although the company doesn’t offer a lot of clarity on its APRs or its fees, allowing a $150,000 draw while requiring $100,000 in revenue can provide a lot of flexibility to young businesses looking to expand their reach.

If you’re already involved in the American Express ecosystem, it may be worth taking a look at the card issuer’s line of credit offer. With a very low annual revenue requirement and a fairly decent maximum, this line of credit gives customers up to a full year and a half before requiring repayment. 

However, although it’s possible to be approved with a credit score of just 640, you’ll want to note that APR maximums can be astronomically high. With a max cap of nearly 36%, borrowers with low credit scores will want to consider other options before locking in an interest rate that high. 

Rapid Finance’s fixed-term loan is a good option for those who need money and the flexibility to pay it back in installments. With a near-instant deposit of funds after approval, customers can borrow up to a million dollars for their business while taking up to five years to pay it off. 

However, unlike a line of credit, fixed-term loans disburse all your funds to you in a lump sum, even if you don’t need them. This means they’ll start accruing interest even if they’re sitting in your bank account. Rapid Finance’s approval process is also unclear; the lender does not disclose the credit score you need or if you need any annual revenue. Other fees involved, including any prepayment fees, also are not disclosed.

Available exclusively to those with a Citi Business checking account, this business loan comes with large limits—although it’s also possible to get a loan as small as $5,000. This is in addition to the ability to take seven years to pay it off, which is the longest term available among lenders on this list. 

However, borrowers will want to be aware that a personal guarantee is required, as well as an established history of at least two years. Finally, prospective loan holders can be charged as much as $250 in origination fees.

Bank of America customers will appreciate the option to centralize their banking with this term loan, with lengths ranging from one to five years. Although it charges an origination fee, borrowers with deep loyalty to Bank of America have a major advantage when applying for a business loan. 

Depending on which tier of Preferred Rewards for Business they fall into, customers can receive up to a 0.75% discount on their APR rates. This means that Platinum Honors members (the highest tier) with excellent credit can qualify for rates as low as 5.75%, which puts this loan firmly at the top of the list for low APRs.

As far as fintech options go, Bluevine is a good choice. It offers a competitively low APR for well-qualified applicants as well as near-instant access to funds. 

However, qualifying for a line of credit with Bluevine is far from simple. Although you don’t need a high credit score, you do need to have an established business history and a lot of revenue. This shakes out to $40,000 per month and $480,000 per year, which may be above what your business is capable of generating.