After researching dozens of different loan options from banks, credit unions, and online lenders, we found that OnDeck offers the best unsecured business loans for most people. It stands out from the crowd due to its simple application process, fast funding, and reasonable qualification criteria. Read on to find out more about them and the other best options on the market today.
The Best Unsecured Business Loan for Most
OnDeck offers unsecured term loans of up to $250,000 and business lines of credit up to $100,000. It takes just ten minutes to apply and you should get a decision the same day. OnDeck even offers same-day funding to qualifying business applicants.
If you have any questions or need some extra assistance, a dedicated loan advisor from OnDeck will help you find an offering that’s right for your business. For businesses that have been in business for more than a year and gross at least $100,000 annually, it should be easy to qualify with OnDeck without having to post any collateral.
The Best Unsecured Business Loan Option to Consider:
- OnDeck — Best unsecured business loans for most
- Bluevine — Best for lines of credit
- Lendio — Best for comparing loan options
- Biz2Credit — Best for poor creditworthiness
- Kiva — Best for startups and entrepreneurs
When it Makes Sense to Get an Unsecured Business Loan
Unsecured business loans can help companies of all sizes achieve different goals. Those funds can be used for anything from daily operations and inventory purchasing to hiring, expansion, and beyond.
If you have a big purchase around the corner and can’t get financing from the seller, an unsecured business loan can be the solution, using that cash to fund the purchase while splitting up your bill into weekly or monthly installments.
Unsecured business loans are also great for startups and business owners who may not have many assets. If you don’t own property, vehicles, or equipment that you’re willing to use as collateral, then banks that offer secured loans won’t accept your application. For those of you who don’t want that risk to secure extra funds, an unsecured loan is the better option.
You can also look for unsecured loans in the form of credit lines. This is a great option for business owners who may not need cash today but don’t want to find themselves in a pinch down the road, or foresee more than one instance of needing extra cash down the road.
#1 – OnDeck — Best Unsecured Business Loans for Most
OnDeck is a reputable online platform for business owners seeking unsecured loans and credit lines. More than $14 billion in loans have been given to businesses across the globe through OnDeck.
OnDeck lines of credit range from $6,000 to $100,000 with 12-month repayment terms. Term loans are available for as little as $5,000 or as much as $250,000 with 24-month repayment options.
To qualify for a term loan from OnDeck, you must be in business for at least one year and have annual gross revenue of $100,000. Your FICO score needs to be 600 or higher.
Applying for a loan with OnDeck takes just ten minutes. Most applicants will receive a decision as quickly as the same day, with some even qualifying for same-day funding.
Another reason why business owners love OnDeck is due to its incredible customer support. Even though it’s a fully online lending platform, you’ll still have access to help from real people. Dedicated loan advisors from OnDeck are available Monday through Friday and can help you find an unsecured loan that’s tailored to your specific needs, or work out issues or concerns with the repayment process.
While OnDeck has loans for businesses in more than 700+ industries, they cannot lend to businesses in Nevada, North Dakota, or South Dakota.
Snag your funding fast by getting started with OnDeck today.
#2 – Bluevine — Best for Lines of Credit
Bluevine is an online business banking solution known for its high-interest checking accounts and bill payment solutions. But the platform also offers unsecured credit lines for businesses in different industries.
As a revolving line of credit, you’ll only pay interest on what you borrow—not the full amount of your credit line. And you’ll get the convenience of drawing from that line of credit when you need it; you’re not just stuck with one lump sum to pay off as you get with a loan.
This is a great option for business owners who want flexible access to cash. Bluevine offers credit lines of up to $250,000 sporting interest rates as low as 6.2%. Note that this percentage is just a simple interest rate calculated from total repayments over 26 weeks.
The application process is very straightforward, and you can get a decision in just five minutes. To qualify for a business line of credit from Bluevine you need a FICO score of 625 or higher. You also must be operational for at least 24 months and have a gross income of $40,000 per month.
Businesses that want flexibility and funding on-demand for various needs should consider an unsecured line of credit from Bluevine. Start your application with Bluevine today.
#3 – Lendio — Best for Comparing Loan Options
Lendio is a simple way for small businesses to see multiple lenders’ offerings in one place.
Just answer a few questions about your business and Lendio will see which loans you qualify for from its network of over 75 lenders. This process helps ensure you get the best possible loan and terms for your needs, with every available loan presented conveniently for easy side-by-side comparison.
The application is very straightforward and takes just 15 minutes to complete.
Lendio has short-term loans ranging from $25,000 up to $700,000 with repayment options between three and seven years. They also offer lines of credit up to $500,000.
Filling out an application from Lendio is free, and it won’t impact your credit. So it’s a good way for small business owners to see what’s out there without feeling like they’re forced into anything.
See all your best lending options by heading to the Lendio website.
#4 – Biz2Credit — Best for Poor Creditworthiness
Most online lenders have strict qualification requirements for unsecured loans. But if your business is new or you have a low personal credit score, your options might be limited or you could be forced to put up collateral.
Fortunately, Biz2Credit has your back. They offer working capital loans to businesses that have been open for six months, and your credit score can be as low as 575.
The only catch is your business must gross at least $250,000 annually to qualify. But this is still a great option for business owners with bad credit who have been turned away elsewhere due to a low FICO score.
Biz2Credit’s application process couldn’t be easier. It takes just four minutes to apply, and you’ll have a decision within 24 hours. They offer funding in a variety of forms, from term loans and working capital loans to SBA loans and equipment financing.
You can apply online or consult with a dedicated funding specialist to guide you through the process. Get started with Biz2Credit today.
#5 – Kiva — Best for Startups and Entrepreneurs
Kiva is somewhat unique compared to other unsecured loan options on the market. They’re a nonprofit organization designed to provide newer small business owners and entrepreneurs with new opportunities for fundraising through crowdfunding.
If you can’t qualify for a traditional business loan and you don’t need a ton of cash, Kiva might be your best option.
They offer microloans of up to $15,000 at 0% interest. That’s right—you won’t pay a penny in interest on your unsecured loan from Kiva. Even at 0% interest, Kiva offers flexible repayment options of up to 36 months.
This is made possible through Kiva’s unique crowdfunding approach to business lending, and it works. More than 2.5 million business owners have raised over $1 billion in capital through Kiva.
The catch for 0% interest is the lengthy application and funding process, which means Kiva is only a viable option if you’re not in a rush to get your hands on cash. Individuals and organizations that fund applicants on Kiva can pitch in on your funding request or pass on it for any reason.
Your initial application takes about 30 minutes. Then you’ll spend about two weeks to prove your solvency and ability to repay by bringing in your friends and family to provide initial seed money before you can go public on Kiva. It can take up to 45 days from your initial application before you see any money.
Methodology for Choosing the Best Unsecured Business Loans
Finding the best unsecured business loan can be challenging with so many options and avenues to consider. Use the considerations below to guide you as you’re evaluating different options against your needs.
First and foremost, how much money do you need?
Some lenders offer credit lines starting around $5,000 or $25,000. Others have term loans ranging from $500,000 up to $2 million.
Rather than just applying for the maximum amount of money, it’s better to apply for only what you need. You might be required to put the purpose of your loan on the application, and the purpose should match the amount you’re applying for.
You can start to narrow your search right away by eliminating lenders that don’t offer the amount you’re seeking and continue from there.
Make sure you carefully review the qualification requirements for different lenders and loan types. Most qualification terms are based on:
- Time in business
- Monthly or annual gross revenue
- Credit score
You’ll see the minimum time in business ranging from six months to two years and minimum annual revenue from $100,000 to $250,000. Check your credit score before you apply as well to ensure you’re applying for a loan that matches your score.
Interest Rates and Term Length
Lots of business owners get excited when they see how much money they can get from an unsecured loan. But you need to look beyond the face value and think about your payments.
Getting $50,000 or $100,000 might seem great. But if you need to repay it in bi-weekly installments at 15% interest, you may need to rethink that decision.
Even if you’re not securing the loan with collateral, there are still bad implications if you fail to repay your loan. So make sure you find an option that offers low interest rates and flexible term lengths. Ideally, you’ll want at least two or three years to repay your loan, with no penalties for early payments.
How fast do you need money for your business?
Term loans are the best option for businesses that need cash fast. Some lenders provide same-day decisions and funding within 24 to 72 hours. Other options can take up to 45 days before you see any money hit your bank account.
If you don’t need money today but think you might need it in the future, you can take your time and find the most favorable terms on a line of credit.
The Top Unsecured Business Loans in Summary
The best unsecured business loans offer a simple application process, fast funding, low interest rates, and flexible repayment terms. Based on this criteria, OnDeck is our top recommendation.
But depending on how much money you need and how soon you need it, there are plenty of other great options to consider. Bluevine, Lendio, Biz2Credit, and Kiva all earned a spot on our list because they can work better in more specialized situations. So take those into consideration as well while you’re evaluating different loans.