Best Unsecured Business Loans

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Whether you’re just starting a business or looking to expand, a business loan can help you fund your growth. However, many small business loans may ask that you use your existing assets as collateral. If this is something you don’t have—or don’t want to rely upon—an unsecured business loan may be a better option for you. 

Take a look at the best unsecured business loans, their key specs, and why they’ve made the top of the list. 

Best Unsecured Business Loans of 2023

Best for Young Businesses : Fundbox Line of Credit



  • APR Range: Undisclosed
  • Loan Terms: 12–24 week terms
  • Loan Amounts: Up to $150,000
Pros & Cons
  • Only need $100,000 in revenue

  • Low credit score requirements

  • Available after six months in business

  • Maxes out at $150,000

  • Unclear APR rates

  • Funds not instant

Why We Chose It

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.

  • Minimum annual revenue: $100,000
  • Minimum credit score: 600
  • Requires personal guarantee: No
  • Available in all 50 states: Not disclosed

Best for Amex Customers : American Express Business Line of Credit

American Express Logo

American Express

  • APR Range: 5.8%–35.99%
  • Loan Terms: 6 months–1.5 years
  • Loan Amounts: $500–$250,000
Pros & Cons
  • No collateral required 

  • Just need $36,000 in annual revenue

  • No additional fees

  • High max APR

  • Requires personal guarantee

  • Needs monthly revenue

Why We Chose It

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. 

  • Minimum annual revenue: $36,000
  • Minimum credit score: 640
  • Requires personal guarantee: Yes
  • Available in all 50 states: Yes

Best for Flexible Term Lengths : Rapid Finance Term Loan

Rapid Finance

Rapid Finance

  • APR Range: Undisclosed
  • Loan Terms: 3 months–5 years
  • Loan Amounts: $5,001–$1,000,000
Pros & Cons
  • Near-instant funds available 

  • Large loan limits

  • Longer terms available

  • Fixed loan 

  • Unclear APRs

  • Unclear qualification requirements

Why We Chose It

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.

  • Minimum annual revenue: Not disclosed
  • Minimum credit score: Not disclosed
  • Requires personal guarantee: Not disclosed
  • Available in 50 states: Not disclosed

Best for Large Loan Amounts : Citi Business Installment Loan

Citi Logo


  • APR Range: 6.25%–10.75%
  • Loan Terms: Up to 7 years
  • Loan Amounts: $5,000–$5,000,000
Pros & Cons
  • Very high loan limit

  • Long-term options

  • Low interest rates

  • Charges an origination fee

  • Must have a business checking account

  • Requires personal guarantee

Why We Chose It

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.

  • Minimum annual revenue: Not disclosed
  • Minimum credit score: Not disclosed
  • Requires personal guarantee: Yes
  • Available in 50 states: Not disclosed

Best for Bank of America Customers : BofA Business Advantage Term Loan

bank of america logo
  • APR Range: 6.5%–17%
  • Loan Terms: 1–5 years
  • Loan Amounts: $10,000–$100,000
Pros & Cons
  • Relatively low APR

  • Longer-term loan

  • Loan discount options for Preferred Rewards members

  • Charges $150 origination fee

  • Requires $100,000 in annual revenue

  • Needs two years of business history

Why We Chose It

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.

  • Minimum annual revenue: $100,000
  • Minimum credit score: Not disclosed
  • Requires personal guarantee: Not disclosed
  • Available in 50 states: Yes 

Best From a FinTech : Bluevine Line of Credit



  • APR Range: As low as 6.20%
  • Loan Terms: 6 months–1 year
  • Loan Amounts: $5,000–$250,000
Pros & Cons
  • Near-instant funds

  • Higher loan limits

  • Low credit score required

  • Multiple fees

  • Requires $40,000 per month in revenue

  • Minimum of two years in business

Why We Chose It

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. 

  • Minimum annual revenue: $480,000
  • Minimum credit score: 625
  • Requires personal guarantee: Not disclosed
  • Not available in Nevada, North Dakota, or South Dakota

Final Verdict

Out of this list, Bank of America comes out ahead for the lowest APRs, though these numbers are only possible for specific applicants. American Express offers another big bank option and requires relatively little revenue to qualify, although its loan amounts aren’t as large as others and the interest rates are high. 

If you’re looking for the largest loan with the longest payoff period, both Citi and Rapid Finance offer a superior installment loan option, while Bluevine provides lines of credit to high-revenue businesses with bad credit. 

Finally, new businesses won’t find better than Fundbox. Its low credit score and six months' worth of business history requirements make these credit lines accessible to businesses just getting off the ground. 

Compare the Best Unsecured Business Loans

Lender APR Range  Loan Terms  Loan Amounts 
Fundbox Undisclosed 12-24 week terms Up to $150,000
American Express  5.80%–35.99%  6 months–1.5 years  $500–$250,000 
Rapid Finance  Undisclosed  3 months–5 years  $5,001–$1,000,000 
Citi  6.25%–10.75%  Up to 7 years  $5,000–$5,000,000 
Bank of America  6.50%–17%  1–5 years  $10,000–$100,000 
Bluevine  6.20% and up  6–12 months  $5,000–$250,000 

Guide to Choosing the Best Unsecured Business Loan

Factors to Consider When Choosing an Unsecured Business Loan

  • Annual percentage rate (APR) of the loan: Annual percentage rate factors in both the interest rate and origination and other fees. Comparing APRs helps you compare actual costs.
  • Credit score: Your credit score will dictate a lot about your loan, including your APR and other terms. The higher, the better. 
  • Business revenue: Your gross revenue is going to affect how much you’ll be able to qualify for or if you’ll even qualify for a loan at all. 
  • Your business plan: Lenders are all about risk management, and a good business plan will be able to show them how you’re mitigating their risk.
  • Your business’s industry and size: Understanding how your company will look in the future can help you plan for growth and any financial setbacks. 

How to Apply for an Unsecured Business Loan

Applying for a business loan is a relatively simple process. You can help it go smoother by gathering financial documentation early. The basic steps are:

  • Search for a loan provider
  • Compare rates and requirements 
  • Gather documentation
  • Apply for a loan; often this can be completed online
  • Provide paperwork and other information 
  • Wait for approval 

Alternatives to Unsecured Business Loans

If an unsecured loan isn’t a good fit for your business, you have other places to turn, including:

  • Small Business Administration loans: These are backed by the federal government, which reduces the risk lenders take on when lending you money. 
  • Secured business loans: A secured business loan is a loan backed by collateral—assets such as inventory, equipment, invoices, or real estate.
  • Business credit cards: Business credit cards can be a source of short-term funding to cover everyday business expenses, and occasionally some larger ones.
  • Merchant cash advances: For businesses that accept credit or debit card payments, you may be able to get a cash advance from your payments processor. The loan will be repaid, plus fees and interest, via customer payments you receive. 

Frequently Asked Questions

  • What Happens If You Default on an Unsecured Business Loan?

    There are a few different things that may happen if you default on an unsecured business loan. For starters, your business’s credit score will be affected, and depending on your business’s structure, your personal credit score may be affected too. Some loan providers may require you to sign a personal guarantee stating that you’ll be personally liable for the funds. This way, if the business fails to pay, the lender will still be able to recoup their losses. 

  • How Do Unsecured Business Loans Work?

    Unsecured business loans rely on a few different parameters to determine whether or not they’ll fund a loan. This can include your business revenue, your credit score (business or personal), how long your business has been established, your banking relationship, and how much money you’d like to borrow. 

  • Can You Get an Unsecured Business Loan With Bad Credit?

    It’s possible to get an unsecured business loan with bad credit, though you may have fewer options and face higher interest rates. Companies such as Fundbox and Bluevine require relatively low scores of just 600 and 625, respectively. However, Fundbox has a low loan limit of $100,000 while Bluevine requires that you have an established business history and a great deal of revenue.

  • What Documents Are Needed to Apply for an Unsecured Business Loan?

    The documents that you’ll need to provide for an unsecured business loan can vary depending on your lender. For some companies, you’ll need only a valid form of identification, a business bank account and routing number, and the last three months of your business bank statements. 


Investopedia is dedicated to providing consumers with unbiased, comprehensive reviews of business loan lenders. To rate providers, we collected hundreds of data points across more than 30 lenders, including interest rates, fees, loan amounts, and repayment terms, to ensure that our reviews help readers make informed decisions for their borrowing needs.

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Article Sources
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  1. Small Business Administration. "Financial Education Curriculum."

  2. Small Business Administration. “7(a) Loans.”

  3. Experian. “What Happens to Your Credit When You Default on a Business Loan?