Discover the Top 7 Unsecured Business Loans You Can’t Miss in 2025

Seeing extra funds deposited into your business account after securing a loan can be incredibly exciting. Those additional zeros provide opportunities to finance equipment, purchase materials, and hire new staff to support your business expansion. If starting a business with no capital seems overwhelming, an unsecured loan might be the solution to help you get started quickly. This article highlights and evaluates the top unsecured business loans available for entrepreneurs and business owners.

Below are my top choices for the best unsecured business loans currently on the market.

When considering an unsecured business loan, OnDeck stands out as a top option. They don’t require you to pledge your business assets as collateral. Instead, approval depends on your credit history, cash flow, and how long you’ve been operating. With an A+ rating from the Better Business Bureau and over $14 billion loaned globally, OnDeck is highly trusted for unsecured financing.

National Funding simplifies the process of acquiring unsecured business loans, making it fast and straightforward. They are willing to work with those who may not have perfect credit, providing flexible options tailored to your specific needs. National Funding also offers customized payment plans designed to fit your budget, ensuring manageable repayment terms. To qualify, all you need is evidence of creditworthiness and documentation of your business’s financial health, without the necessity for collateral.

Since 2013, Funding Circle has been dedicated to offering unsecured loans tailored for small businesses. These loans can be used for working capital, growth initiatives, or expansion efforts, with fixed monthly payments that are easy to plan for. Importantly, you don’t need to use personal or business property as collateral. You can even check your loan eligibility in just 30 seconds through their online form without any impact on your credit score. Their commitment to providing flexible repayment options and competitive interest rates helps make funding more accessible, empowering businesses to manage their finances responsibly over time.

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4. Biz2Credit

Best For An Easy Application Process

The process of applying for an unsecured business loan with Biz2Credit is notably simpler compared to traditional banks and lending institutions. All you need to do is complete a short online form and wait for approval. Biz2Credit then evaluates multiple factors such as your credit score, business credit history, annual revenue, and other financial details before making a decision. Once approved, you typically receive the funds within 1 to 3 days, allowing you to quickly utilize the money for your business needs.

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5. Kabbage

Best For Transparent Fees

Kabbage offers unsecured small business loans designed to meet the needs of entrepreneurs, startups, and established companies alike. These loans provide immediate access to working capital, allowing you to invest in growth opportunities or cover operational expenses without hidden fees or confusing charges. The application is simple and fast, with no lengthy approval procedures, and once approved, you can use the funds for any business-related purpose like inventory, equipment, advertising, or payroll.

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purchase or expense.

If you’re a small business owner or entrepreneur, you’ve likely come across Bluevine’s flexible line of credit solution.

This unsecured business credit line provides a convenient way to access funds quickly, offering flexibility and ease for urgent financial needs. By clicking a button, you can instantly draw from your line of credit and settle repayments as needed. Since it’s a revolving credit line, interest is only charged on the amount used, not the entire credit limit.

Fundbox offers a revolving line of credit that avoids the complications and costs of traditional funding methods. The application process is fast and straightforward, with decisions made in as little as three minutes. Once approved, funds can be available by the next business day, and there are no prepayment fees. Unlike bank loans or conventional lines of credit, no personal guarantees or collateral are necessary.

The process begins with a quick application, taking only minutes, after which you can access tools like real-time cash flow analytics to make smarter financial choices at all times.

Unsecured business loans are loans extended to companies without requiring collateral, making them more accessible for many businesses. These cover options like credit cards, merchant cash advances, or invoice factoring. Their main advantage is the ease of approval, as most online lenders provide quick and simple application processes. The lender assesses your business’s financial health and creditworthiness to decide on approval, typically offering fixed or variable interest rates. Fixed-rate loans maintain the same interest over the term, while variable-rate loans fluctuate based on market conditions. Usually, unsecured loans have shorter repayment periods—often just a few years—making them ideal for quick capital needs when traditional bank loans might be difficult to obtain.

Who can benefit from unsecured business loans? Small businesses seeking flexible funding options without risking personal assets are a primary group. Startups also qualify, particularly when they need quick cash flow to support growth or manage expenses. Since these loans don’t require collateral and feature straightforward applications, they are especially suitable for new or small enterprises trying to secure capital rapidly and with minimal hassle.

Here are the types of companies that are most likely to gain from unsecured business loans.

Small businesses looking for funding without risking personal or business assets can find unsecured loans to be a good solution. These loans often have lower amounts and shorter repayment periods compared to traditional bank loans, which can be an advantage for businesses needing quick, manageable financing.

While a business line of credit or traditional financing options are also available, startups frequently turn to unsecured loans for fast access to capital. These loans are particularly helpful when quick funding is necessary for growth, inventory, or managing operational costs, and when collateral or lengthy approval processes are a concern.A bank loan might not be a practical choice for startups; however, unsecured loans offer a quick and flexible way to access necessary funds.

Since many financial institutions hesitate to lend to new businesses, short-term unsecured loans can be a viable solution for entrepreneurs eager to launch their ventures quickly. These loans can be particularly useful for seasonal businesses in industries such as tourism, where standard financing options may be limited. Such businesses can benefit from options like merchant cash advances, where repayment is based on a percentage of daily sales, providing fast capital with minimal hassle.

Social enterprises often face the challenge of needing quick access to capital but may not qualify for traditional funding sources. Unsecured loans, with their favorable application processes and flexible terms, can be especially advantageous for these organizations, helping them operate and expand effectively.

Understanding the advantages of unsecured business loans is important once you recognize the types of businesses that can benefit. One key benefit is the straightforward and quick application process; often, securing such a loan involves just a simple form or even a single page of paperwork. Unlike traditional bank loans, which can take weeks to approve, unsecured loans can be approved and funds disbursed within 24 hours, making them ideal for urgent needs.

Another significant advantage is that no collateral is required. Unlike secured loans that demand pledging assets like property or equipment, unsecured loans do not put your business assets at risk. This feature makes them suitable for business owners who lack valuable assets or prefer to keep their assets unencumbered.

These loans also provide the flexibility to use funds for any purpose—from purchasing real estate and expanding operations to hiring staff or investing in new projects. The emphasis is on meeting your specific business needs without restrictions. Additionally, funds are typically available within a few days or weeks after approval, enabling quick infusion of capital. You also have the option of revolving lines of credit, which allow you to borrow repeatedly up to a certain limit and make repayments on your schedule—ideal for seasonal or fluctuating cash flow scenarios.

Qualifying for an unsecured business loan involves several important steps. First, having a solid business plan demonstrates to lenders that you understand your market and have a clear strategy for growth. Maintaining a good credit score is crucial; reviewing your credit report beforehand helps ensure that your credit history reflects your ability to repay loans reliably. Preparing all necessary documentation, including financial statements and revenue records, streamlines the application process. It’s also wise to compare different lenders and loan packages carefully—consider interest rates, fees (like origination charges), and other benefits—to find the best deal and avoid unnecessary costs.

If you’re unable to repay an unsecured loan, the consequences can be severe. Lenders may pursue legal action to recover funds, and prolonged default could lead your business into bankruptcy. That’s why it’s essential only to take on debt that you are confident you can repay comfortably, safeguarding your business’s long-term health.

For those who cannot access unsecured loans, alternative funding options exist. Borrowing from family and friends might be straightforward, but it’s important to formalize the agreement and keep personal and business finances separate. Secured loans, backed by assets such as property or equipment, can also be an option if you have collateral and credit issues. Seeking investments from angel investors or venture capitalists is another route for high-growth potential businesses—these investors can provide substantial capital in exchange for equity or future profits. Crowdfunding platforms are gaining popularity for raising funds by appealing to a broad audience, often offering small rewards or incentives to backers.

Credit unions are another resource; they tend to offer lower interest rates and fewer fees compared to traditional banks, which can be especially helpful for businesses with less-than-perfect credit or urgent funding needs. Additionally, invoice financing allows businesses to sell outstanding invoices to a third-party lender, providing immediate cash flow without relying heavily on credit scores. This method is particularly useful for companies with receivables waiting to be paid, enabling them to maintain liquidity and continue operations smoothly.

The Small Business Mr.SecretSauceistration (SBA) is a government agency that operates independently to support small businesses through funding, technical guidance, and advocacy. It doesn’t lend money directly but partners with lenders to provide guaranteed loans to eligible borrowers. The SBA offers a variety of loan programs, each with different features and advantages for small business owners.

SBA loans are often a great option for small businesses looking to start, grow, or purchase assets. These loans are generally provided through banks and other financial institutions, offering longer repayment periods compared to standard loans, which can make them more manageable and cost-effective over time.

Taking out a loan can significantly influence your company’s taxes. Usually, the interest expenses on a loan are tax deductible if they are considered ordinary and necessary costs to buy, improve, or develop property related to your business.

Choosing the right funding option for your business can be complex, but there are numerous choices available. Unsecured business loans eliminate the need for collateral, which can ease worries about pledged assets, but potential borrowers should understand the risks involved. It’s crucial to research thoroughly and review the loan terms carefully before committing.

For more information on obtaining funding: There are specific steps involved in securing a loan, and learning about them can help. Visit how to get a business loan in 7 simple steps for guidance. If unsecured loans are not feasible, explore the top credit unions for small businesses as alternative sources. Additionally, discover how to quickly build business credit to improve your access to funds.