Top 4 Unsecured Business Loans of 2024

Unsecured business loans allow you to access financing for your business without having to provide collateral such as business equipment, real estate, or cash. Lenders generally offer this type of loan based on your credit standing and business history. Unsecured loans can support small businesses in a variety of ways, from raising cash to purchase inventory to paying payroll.

CNBC Select analyzed small business loan lenders to determine which unsecured business loans are best for different needs. (See our methodology for details on how this list was created.)

Who is this for? We offer multiple reliable business loan options to suit a variety of needs. You may be able to choose from merchant cash advances, term loans, and business lines of credit. The credit score requirement is just 500, so it's also great for people with low credit scores.

Outstanding advantages: Depending on the type of loan, same-day financing is also possible. Plus, you can pre-qualify without taking hard credits and find out if you're approved within 4 hours.

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Who is this for? If you want a line of credit that you can borrow when you need it, a business line of credit may be a better choice. Bluevine offers business lines of credit up to $250,000, and your credit limit may increase as your business grows. We will consider applicants with credit scores up to 625.

Outstanding advantages: Bluevine does not charge fees for opening, maintaining, or terminating a business line of credit. There are also no penalties for prepaying. The application process is quick and you can receive your funds within hours if you choose the bank transfer option.

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Who is this for? With Funding Circle's term loans, you can raise money for almost any business purpose and receive your money within two business days. You may be able to borrow up to 5 million yen. Additionally, lenders have no minimum income requirements. However, note that Funding Circle also offers secured loans, and long-term loans (those over 3 years) may require collateral. Therefore, we recommend this lender for short-term situations.

Outstanding advantages: Funding Circle lets you see if you qualify without a hard credit check. If approved, he can receive the funds within two days. Additionally, lenders do not charge penalties for early repayments.

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Who is this for? If you need to borrow less than $15,000, Kiva is a great option. This crowdfunding platform is a particularly good solution for young businesses, as it offers 0% interest rates and allows you to prove your creditworthiness by inviting friends and family to lend.

Outstanding advantages: Kiva has no traditional business or credit score requirements.

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Credibly is a fintech platform that provides financing solutions for small and medium-sized businesses. This stands out in that it considers applicants with credit scores as low as 500. In addition to traditional financial and credit factors, Creditly also considers a company's overall health when deciding whether to approve your application.

Loan amount

$5,000 to $400,000

Eligibility requirements

Requirements may vary, but typically require six months of business, a credit score of 500 or higher, and an average monthly income of at least $15,000.

repayment schedule

daily, weekly, monthly

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Bluevine is another fintech company that offers a variety of financial products to businesses, including business credit cards, business loans, and checking accounts.

Loan amount

Up to $250,000 in credit lines

Eligibility requirements

Individuals must have a FICO score of 625, be in business for 24 months, have a monthly revenue of $40,000 or more, and operate or incorporate a business in an eligible U.S. state.

repayment schedule

Fixed monthly or weekly payments over 6 or 12 months per draw.

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Funding Circle is a global lending platform offering small business loans, including term loans, lines of credit, and SBA (7) loans.

Loan amount

$25,000 to $500,000

Eligibility requirements

FICO score of 660, in business for at least 2 years, no bankruptcy in the past 7 years, and not operating in certain industries such as nonprofit organizations, weapons manufacturers, speculative real estate, gambling operations, marijuana dispensaries, or pornography.

repayment schedule

biweekly or monthly payments

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Kiva is a nonprofit, peer-based lending platform that allows entrepreneurs and small businesses to crowdfund interest-free loans. According to Kiva's website, more than 2.5 million people have used the platform and he has raised more than $1.6 billion.

Loan amount

Up to $15,000

Eligibility requirements

You must be at least 18 years old and using the loan for business purposes. You and your business must be based in the United States. Your business must not engage in multi-level marketing, direct sales, illegal activities, or financial investments. Additionally, it cannot be subject to foreclosure, bankruptcy, or liens. Finally, you'll need to invite a few friends and family to give you a loan to prove your creditworthiness.

repayment schedule

not advertised

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Unsecured business loans are a popular financing method because they don't require collateral. This type of loan can be useful for many business needs, but you'll likely need to demonstrate healthy credit and income to get approved. Be sure to pre-qualify with several lenders to ensure you get the most favorable terms.

CNBC Select's mission is to provide quality service journalism and comprehensive consumer advice to help readers make informed decisions about their money. All business loan reviews are based on rigorous reporting by a team of expert writers and editors with extensive knowledge of business loan products.. While CNBC Select earns commissions from affiliate partners on many offers and links, we create all content without input from commercial teams or outside parties and adhere to journalistic standards and ethics. We are proud of our products. To learn more about how to choose the best unsecured business loan, check out our methodology.

To determine which unsecured small business loans offer the best loan terms, CNBC Select analyzed 12 U.S. loans offered by both online and brick-and-mortar lenders.

We compared each small business loan on a variety of features, including:

• Minimum and maximum loan amount
• length of term
• credit score required
• Application requirements
• Streamlined application process
• expenditure of funds
• customer support
• Business Bureau Better Rating
• Customer reviews (if available)

Interest rates and fee structures for small business loans are subject to change without notice and often fluctuate based on the prime rate. However, once you agree to a loan agreement, a fixed rate APR ensures that your interest rate and monthly payments will remain the same throughout the life of your loan. The annual interest rate, monthly payments, and loan amount will vary depending on your credit history and creditworthiness.

When it comes to small business loans, lenders will almost always run a hard credit check and require a complete application. This may require proof of income, identity verification, address proof, etc. for both individuals and businesses.

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