Even “unsecured” business loans almost always come with personal liability attached — 59% of small businesses with debt used a personal guarantee to secure it, according to the Federal Reserve’s 2026 Report on Employer Firms.
Many unsecured lenders still file a blanket UCC-1 lien on general business assets, which can limit your ability to borrow from other lenders simultaneously — always read the full terms before signing.
Online lenders typically accept credit scores from 525 to 650 and as little as three to six months of operating history, while bank lenders generally want 680+ and at least two years in business.
This summary was generated by AI and may contain errors or omissions.
Getting a business loan without pledging a specific asset is possible through both direct lenders and loan marketplaces. These loans tend to move faster than secured alternatives, though they often come with higher rates and stricter credit requirements.
Worth knowing before you start: 59% of small businesses with debt used a personal guarantee to secure it, meaning even “unsecured” financing almost always comes with personal liability attached, according to the Federal Reserve’s 2026 Report on Employer Firms. Every product detail on this page was verified directly on each lender’s own website.
We reviewed the top-ranking competitor pages for “best unsecured business loans” to identify lenders most consistently featured. We then verified all product details, loan amounts, rates, terms and eligibility requirements, exclusively against each lender’s own website.
We selected lenders whose products are genuinely unsecured (no specific asset pledged upfront at time of borrowing), and considered rate transparency, breadth of eligible borrowers, funding speed and overall accessibility. Products that state they are secured by business assets on their own terms pages were excluded.
How to compare unsecured business loans
Total cost. APR is the most useful comparison when it’s published. For lenders using factor rates (like Fora Financial), ask for the total repayment amount in dollars so you can compare against APR-based loans.
Loan structure. A term loan delivers a lump sum. A line of credit lets you draw as needed and pay interest only on what you use. Lines of credit work better for recurring needs; term loans suit one-time investments.
Repayment frequency. Some lenders debit weekly, others monthly. Weekly payments can strain cash flow even at a low rate.
Personal guarantee. Every lender on this list requires one. Understand what personal exposure you’re accepting before you sign.
UCC liens. Several “unsecured” lenders still file a blanket UCC-1 lien against general business assets. This can limit your ability to borrow from other lenders simultaneously.
State restrictions. OnDeck excludes Nevada, North Dakota and South Dakota. Always confirm eligibility before applying.
How to qualify for an unsecured business loan
Eligibility varies but most lenders look at:
Personal credit score. Requirements range widely — online lenders typically accept scores from 525 to 650, while traditional banks generally want 680 or higher.
Time in business. Online lenders often require as little as three to six months of operating history. Bank lenders typically want at least two years.
Annual revenue. Most lenders want to see between $100,000 and $200,000 in annual revenue, though some online lenders set lower thresholds for strong applicants.
Business structure. Most lenders accept sole proprietors, LLCs and corporations. Some restrict eligibility to incorporated businesses only.
Personal guarantee. Expected by virtually every unsecured lender regardless of loan size or structure.
How to apply for an unsecured business loan
Know your numbers. Gather your annual revenue, recent bank statements, time in business and personal credit score before you start.
Decide how much you need. Borrow only what you need — unsecured loans typically carry higher rates than secured alternatives, so keeping amounts manageable matters.
Compare lenders. Look at rate, repayment structure, fees and funding speed side by side. Always verify current terms on each lender’s own website.
Prequalify where available. Bluevine, OnDeck, Fundbox and Lendio all offer soft-pull prequalification with no credit score impact.
Submit your application.Online lenders typically need basic business information and recent bank statements. Bank lenders may require tax returns, financial statements or a business plan.
Review the offer carefully. Read the full repayment schedule, any fees and the personal guarantee terms before signing.
What is an unsecured business loan and how does it work?
An unsecured business loan lets you borrow without pledging a specific asset as collateral. Instead, lenders base approval on your creditworthiness, revenue and a personal guarantee. If you stop making payments, they pursue collection through the guarantee and legal means rather than seizing an asset.
Because lenders take on more risk, unsecured loans typically carry higher rates and stricter eligibility requirements than secured alternatives. Many lenders still file a blanket UCC-1 lien on general business assets, which can affect your ability to borrow from other lenders simultaneously.
Unsecured financing comes in several forms: a revolving line of credit, a fixed-term working capital loan or a factor-rate advance — each with different cost structures and repayment mechanics.
Pros and cons of unsecured business loans
Pros
No specific asset pledged or at risk of repossession
Faster approval and funding than most secured bank loans
Flexible use of funds for most business purposes
Cons
Higher interest rates than secured alternatives
Personal guarantee still required by virtually every lender
Stricter credit and revenue requirements than secured options
Blanket UCC liens may still be filed on general business assets
Frequently asked questions
A secured loan requires you to pledge a specific asset — like real estate, equipment or inventory — as collateral. An unsecured loan doesn't. Most unsecured lenders still require a personal guarantee and may file a general UCC-1 lien on your business assets. The difference is that no single identified asset is at risk of being seized.
Pinnacle Funding accepts scores as low as 525. Fora Financial goes down to 570 and Fundbox to 600. Expect higher rates the further your score falls from the 700+ range.
Almost always, yes. A personal guarantee is the primary protection lenders use in the absence of specific collateral. It means you're personally liable for repayment if your business cannot pay.
SBA loans aren't marketed as unsecured, but the SBA doesn't always require specific collateral on smaller amounts. On 7(a) loans under $25,000, lenders are not required to take collateral. Some CDFI lenders offer SBA 7(a) loans — check lender eligibility pages for current programs.
Megan B. Shepherd is a personal finance expert and editor for loans and insurance at Finder.
Her personal finance expertise has been featured on Forbes, Nasdaq, MediaFeed, Fox News, Time, Reviews.com, and carinsurance.com, adding invaluable information related to personal loans, financial strategies and smart borrowing tactics.
Megan graduated from the University of Texas at Dallas with a BS in Business Administration with an entrepreneurial focus. She's worked as a certified financial adviser and has earned certificates of completion from A.D. Banker & Company.
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