How do I get an unsecured business loan?
Because obtaining an unsecured business loan doesn't require collateral, lenders will typically assess your personal credit worthiness. And while business assets may not be on the hook, some lenders may require that you provide a personal guarantee, which would put your personal assets, such as a home, at risk if you are unable to repay a business loan.
Unsecured business loans with a personal guarantee
OnDeck’s unsecured business line of credit is a good option for business owners who need working capital to manage cash flow or handle unexpected expenses. Its APRs range from 11% to 61.90%, and its requirements are less stringent than some of its online competitors. You’ll need a minimum 600 credit score to qualify, and at least a year of business history and $100,000 in annual revenue.
OnDeck’s line of credit doesn’t require a lien on your business’s assets, although you still have to sign a personal guarantee, which makes you liable for repaying the debt if your business fails to repay.
BlueVine offers an unsecured line of credit with APRs that range from 15% to 78%. The line of credit maxes out at $250,000, which provides a little more wiggle room for larger purchases. They also come in either six- or 12-month terms, though the 12-month option is harder to qualify for. And they’re fast — it takes up to 12 hours to be approved for a line of credit, and once approved, you can receive funding within 24 hours.
BlueVine also has an invoice financing product. BlueVine will front you 85% to 90% of your outstanding invoice, then the rest (minus fees) once your customer pays you. It’s a good option if you have strong revenue and need to finance large invoices.
Unsecured business loans with no personal guarantee
Fundbox is a better choice for businesses that need short-term working capital, because the lender provides a line of credit up to $100,000. Borrowings on the line of credit are repaid weekly for 12 or 24 weeks, and funding is as fast as the next business day. Qualifying requires a minimum $100,000 annual revenue and six months in business.
Find and compare small-business loans
NerdWallet has created a comparison tool for the best small-business loans to meet your needs and goals. We gauged lender trustworthiness and user experience, among other factors, and arranged lenders by categories that include your revenue and how long you’ve been in business, so that you know which loans you qualify for.