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
Types of loans
Long-term loans, working capital loans, business line of credit and merchant cash advance
Better Business Bureau (BBB) rating
A+
Loan amounts
$5,000 to $400,000
Terms
3–15 months
Minimum credit score needed
500+
Minimum requirements
Must have been in business for at least six months and have average monthly revenue of at least $15,000
Terms apply.
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 $400,000
- 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.
Best for line of credit
BlueVine Business Line of Credit
Annual Percentage Rate (APR)
Starting at 6.20% APR
Loan amounts
Up to $250,000
Terms
6 or 12 months
Credit needed
625
Early payoff penalty
None
Maintenance fees
$0
Late fee
5% of the missed repayment (minimum of $35)
Terms apply.
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.