Compare the best unsecured business loans. No collateral required. Fast approval, flexible terms, and options for all credit types.
Unsecured business loans are common financing options for borrowers who have limited resources or collateral to offer in exchange for funding and typically cannot get approved for loans that require it. In fact, the Federal Reserve’s 2025 Report on Employer Firms[1] reports that, based on the 2024 Small Business Credit Survey, 29% of loan applicants were denied due to insufficient collateral. As such, many businesses have to consider other options, usually having to do with unsecured loans.
That said, the best unsecured business loan offerings should have no collateral requirements, competitive rates and terms, and quick access to funds. Since loan types can vary based on your specific needs, I’ve put together my top picks suitable for a wide variety of borrowers.
| Lendio | ||||
| Clarify Capital | ||||
| Bank of America | ||||
| American Express | ||||
| 1West | ||||
Lendio is a loan broker that has over 75 partnering lenders in its network. As such, its partners offer a wide variety of financing options, some inclusive of unsecured loans. What’s more, you can review all of your financing opportunities all at once, just by submitting a single application. For that reason, I chose it as the best pick for multiple loan options. Not only can this save you both time and money, but it can also take the pressure off shopping around for multiple lenders.
It’s worth mentioning that this provider also makes our list of the best same-day business loans since you can get access to funds quickly. Additionally, you’ll be paired with one of Lendio’s representatives, who will guide you through the process and help you review your options. Depending on your business financing needs, you can go over loan types, qualifications, rates, terms, or any other questions you may have.
The application process is simple and can be completed online via Lendio’s website in just a few minutes. In addition to no application fee, there’s no impact on your credit score.
Clarify Capital is another loan broker I recommend, as it also has a large lending network comparable to Lendio in that it has over 75 partners. It offers flexible rates, terms, and qualifications, and can help you secure financing via a variety of potential unsecured business loan options. It’s also a top pick in our guide to the best short-term business loans.
You’ll get to work with a dedicated loan advisor who can help you evaluate your application and financing options. This way, you can ask any questions and better understand opportunities that meet your current financial situation. It has various unsecured loan options, ranging from short-term business loans and business lines of credit to working capital loans and MCAs. While qualifying criteria will vary depending on the type you apply for, it’s another opportunity to get matched with a variety of options all at once.
You can visit Clarify Capital’s website to access the online application, which only takes a few minutes to fill out. You’ll want to provide details regarding your request for funds and business information, so be prepared beforehand.
Bank of America offers what’s coined as a Business Advantage Term Loan, and it’s one of its popular unsecured business term loan products. Funds can be used for a wide variety of business purposes, whether you’re looking to expand, purchase equipment, or finance other long-term investments. It’s one of my top picks since it’s a versatile option from a well-known financial institution that can support a wide range of business types and needs.
While you’ll need to have strong qualifications to be considered, it’s still a solid option if you’re looking to work with a direct lender with minimal fuss. Additionally, it has favorable starting rates and flexible loan amounts and repayment terms that make it an attractive option if you need long-term financing.
To apply, you’ll need to gather your personal and business information. You can start your application online, or you can schedule an appointment with one of its lending specialists to go over any questions you may have. You can also fill out an application over the phone or in person.
If you’re looking for a business line of credit that can be used on an as-needed basis, I recommend American Express. What stands out to me is its simple qualification requirements that make it accessible to a wide variety of businesses. In fact, it has the lowest revenue requirements of this guide.
Another perk is its variety of repayment options, which span anywhere from 6 to 24 months. This can be a great pick for businesses that are looking to finance short-term or emergency expenses and need some flexibility to pay them off. Notably, American Express also makes our roundup of the best business lines of credit.
Keep in mind that rates can vary widely, as Amex notes that they can range from
The application process takes only a few minutes, and you’ll have to create a profile on the American Express website. If approved, you can receive funds quickly, usually within 72 hours.
1West keeps the lending process simple, allowing you to submit your application quickly, anytime, day or night. It has a 24/7 automated engine called ABLE (Automated Business Lending Engine) that can process your application and funding request and immediately match you with potential lenders. While it is a broker, its network of 50+ partnering lenders can provide you with multiple options to get an unsecured working capital loan.
While this may be a smaller margin of partnering lenders when compared with Lendio and Clarify Capital, there’s still room for flexibility when it comes to qualification requirements. This is especially true if you’re a borrower with a lower credit score, as it offers one of the lowest credit score requirements of this guide, alongside Clarify Capital.
To apply, you can visit the 1West website to get started. It only takes a few minutes, and you can upload your required documents easily to the online portal. Once you’ve finished with the application process, you can visit the online dashboard to check your application status.
When selecting the best unsecured business loans for this guide, I focused on factors that directly affect cost, accessibility, and borrower experience. My goal was to identify options that combine fair pricing, flexible terms, and trustworthy service, all without requiring collateral. I reviewed each lender using the following criteria:
By weighing these factors, I aimed to provide clear, practical comparisons so that your business can confidently choose an unsecured loan that fits its needs.
Choosing the right loan type and provider is essential to ensuring that the loan process is seamless. That said, there are a few key considerations to keep in mind when making your decision.
✅ Weigh the total cost of borrowing. Before committing, calculate more than just the interest rate. Factor in loan fees, the total interest you’ll pay over the full term, and the size of the monthly payments. Consider whether the repayment length fits your cash flow and whether the loan amount is realistic for your needs. Choosing a loan beyond your budget can strain your finances and damage your credit score.
✅ Compare offers from multiple lenders. Rates, fees, and repayment terms can vary widely between lenders, especially based on your credit score, time in business, and requested loan amount. Getting quotes from several providers not only increases your chances of securing the best deal but may also uncover promotional rates or faster funding options that save you money and time.
✅ Check the lender’s track record. If problems arise, you’ll want a lender that resolves them promptly and professionally. Research customer reviews and ratings to see how they’ve handled past borrower concerns. Pay attention to feedback about service quality, transparency on fees and interest rates, and how efficiently they process applications and funding.
| You don't have to pledge business or personal assets, so there's less risk of losing property if you can't repay. | Lenders often charge higher interest rates and fees to offset the risk of no collateral. |
| There is fewer paperwork since asset valuations and liens aren't required. | They may require stronger credit scores, higher revenue, or longer time in business. |
| They can be used for various purposes like working capital, marketing, equipment, or expansion. | Even without collateral, lenders may require you to guarantee repayment personally. |
Unsecured business loans are most commonly utilized by borrowers with limited to no physical collateral to secure a loan. While it is one of the common business loan requirements, it’s not always necessary when obtaining financing.
For those who are still in need of financing, an unsecured business loan is usually facilitated by a lender who’s willing to take on the additional risk, usually in exchange for higher rates and fees. That said, it’s likely that you’ll still have to provide a personal guarantee.
However, without collateral, it’s possible that it’s also a good option for businesses looking to get quick access to funds, as there are fewer documentation requirements needed to facilitate the loan process.
If you ultimately decide that an unsecured business loan isn’t quite what you’re looking for, there are a few alternatives you can consider.
In some cases, yes. It really depends on the lender’s risk tolerance. That said, you may have to offset your application with other strengths to be considered for approval. This can include a personal guarantee and down payment.
Generally, there’s no set limit other than the one imposed by the lender. It will vary widely based on the product offering of the lender and your other qualifications.
It depends on the loan type and lender preference. It’s a safe bet to say that most unsecured loan types will require a personal guarantee, but check with your lender for specific loan terms and conditions.
Reference:
Lauren McKinley is a financial professional with five years of experience in credit analysis, commercial loan administration, and banking operations. She has worked at regional lending institutions across the Northeast, evaluating risk, analyzing financials, and managing loan processes. Specializing in commercial real estate and small business financing, Lauren has helped diverse borrowers navigate financial solutions.
