Unsecured business loans offer a viable financing option for small businesses in the United States, especially when assets like property or equipment are unavailable for collateral. As of May 2025, several lenders stand out for their competitive terms, accessibility, and suitability for various business needs.
Unsecured business loans have become a popular choice, offering access to capital without requiring collateral. According to the U.S. Small Business Administration, approximately 30 million small businesses operate in the country, with nearly 40% citing access to funding as a critical challenge.
In recent years, unsecured business loans have seen a 15% increase in demand, driven by faster approval times and more adaptable terms compared to traditional secured loans. Industry data also shows that average unsecured loan amounts range between $10,000 and $500,000, with interest rates varying from 7% to 30% depending on creditworthiness and lender policies.
As the lending landscape evolves in May 2025, understanding the best unsecured loan options is essential for entrepreneurs aiming to secure capital efficiently and responsibly.
Top unsecured business loan providers in May 2025
1. U.S. Bank
- Best for: Fast funding
- Loan amounts: Up to $250,000
- Loan terms: Typically 1 to 5 years
- Interest rates: Vary depending on creditworthiness; generally competitive for unsecured loans
- Eligibility: Minimum credit score usually around 680; stable business revenue required
U.S. Bank offers unsecured term loans designed for businesses that need capital quickly. The application process is efficient, often allowing decisions within a few days, with funding following shortly after approval. The lender provides flexible repayment options tailored to the business cash flow cycles.
Their dedicated small business support helps borrowers through the application and funding phases.U.S. Bank also offers other financial products such as business checking accounts and merchant services, which can be bundled for customer benefits.
2. Bluevine
- Best for: Low rates
- Loan amounts: Up to $250,000 (line of credit)
- Loan terms: Lines of credit up to 6 or 12 months, with option to renew
- Interest rates: Starting as low as 4.8% APR (varies by qualification)
- Eligibility: Minimum personal credit score around 600, at least $10,000 monthly revenue
Bluevine’s unsecured business line of credit provides flexible access to funds that can be drawn upon as needed, ideal for managing working capital or unexpected expenses. The interest is charged only on the amount used, making it cost-effective.
The platform allows easy online management with fast funding, typically within 24 hours after approval. Bluevine also integrates with popular accounting software to streamline borrowing. Bluevine does not charge origination fees or prepayment penalties, which enhances the overall affordability.
Read: Unsecured Business Loans: What Does This Mean?
3. Fundbox
- Best for: Startups and businesses with limited credit history
- Loan amounts: Up to $150,000
- Loan terms: Short-term loans up to 24 weeks
- Interest rates: Transparent weekly fees; equivalent APR typically ranges between 13% to 50%, depending on terms
- Eligibility: Minimum credit score of 500; requires active business bank account and at least $50,000 in annual revenue
Fundbox offers credit lines and invoice financing tailored for newer businesses that might not qualify for traditional loans. Their application process is fast and fully digital, with approval often in less than 24 hours.
Fundbox is known for transparent pricing and simple repayment terms. It also helps smooth cash flow gaps by advancing funds against outstanding invoices. Fundbox’s technology-driven approach allows businesses to connect bank accounts securely for real-time financial analysis.
4. Fora Financial
- Best for: Borrowers with bad credit or lower credit scores
- Loan amounts: Up to $500,000
- Loan terms: 6 months to 5 years
- Interest rates: Typically higher APR, reflecting credit risk; varies widely
- Eligibility: Credit scores as low as 500 considered; requires minimum monthly revenue of $10,000
Fora Financial specialises in providing unsecured loans to businesses that may struggle to secure financing due to credit challenges. Their loan products include term loans and merchant cash advances, with flexible qualification standards and personalised customer service.
Though interest rates can be higher, their willingness to work with less-than-perfect credit makes them a valuable resource for many small businesses. Fora Financial offers fast funding, often within 24-48 hours, and customisable repayment plans based on business cash flow.
5. OnDeck
- Best for: Short-term financing needs
- Loan amounts: Up to $250,000
- Loan terms: Typically 3 to 36 months
- Interest rates: Starting around 11.89% APR, but can be higher depending on credit
- Eligibility: Minimum credit score of 600, at least $100,000 annual revenue, 1 year in business
OnDeck offers unsecured short-term business loans and lines of credit. The approval process is fast, with funds often available within 24 hours of approval. OnDeck also provides transparent terms and a user-friendly online platform for loan management.
Their loans are commonly used to cover payroll, inventory, or urgent cash flow needs. OnDeck charges origination fees typically ranging between 2.5% to 4%, which borrowers should consider in total loan cost.
6. Bank of America
- Best for: Established businesses with strong credit
- Loan amounts: $10,000 to $500,000
- Loan terms: Up to 5 years
- Interest rates: Competitive fixed and variable rates; subject to credit approval
- Eligibility: Strong personal and business credit scores; established business history of at least 2 years
Bank of America provides unsecured business loans with fixed rates and clear repayment schedules, offering predictability in budgeting. Their loan officers work closely with clients to customise loan structures.
In addition to loans, BoA offers extensive banking services and financial advisory, creating a full-service banking relationship. Borrowers can apply online or in-branch, and loyal Bank of America customers may benefit from preferred terms.
Key considerations when applying for unsecured business loans
- Interest rates: Unsecured loans typically come with higher interest rates compared to secured loans due to the increased risk for lenders.
- Credit requirements: Lenders often have minimum credit score requirements. For instance, Bank of America typically requires a personal credit score above 700. However, some lenders like Fora Financial are more flexible with credit history.
- Loan amounts and terms: Loan amounts can vary significantly. While the U.S. Bank offers loans up to $250,000, Bank of America provides loans ranging from $10,000 to $500,000. Repayment terms also vary, with some lenders offering up to five years.
- Application process: The application process can differ among lenders. Online platforms like Fundbox and Bluevine offer quick and straightforward applications, often resulting in faster funding.
Alternatives to unsecured business loans
For businesses that may not qualify for unsecured loans, several alternatives are available:
- Secured business loans: These loans require collateral but often come with lower interest rates and higher borrowing limits.
- SBA loans: Backed by the U.S. Small Business Administration, these loans offer favorable terms but have stringent eligibility requirements.
- Merchant cash advances: These provide quick access to funds based on future sales but can be expensive due to high fees.
- Business credit cards: Suitable for short-term financing needs, offering flexibility but often at higher interest rates.
Final thoughts
Selecting the right unsecured business loan depends on your specific business needs, financial situation, and urgency for funds. Lenders like U.S. Bank and Bluevine are suitable for businesses requiring quick access to capital, while Bank of America caters to established businesses seeking larger loan amounts. It’s crucial to compare loan terms, interest rates, and eligibility criteria to find the best fit for your business.
Himani Verma is a seasoned content writer and SEO expert, with experience in digital media. She has held various senior writing positions at enterprises like CloudTDMS (Synthetic Data Factory), Barrownz Group, and ATZA. Himani has also been Editorial Writer at Hindustan Time, a leading Indian English language news platform. She excels in content creation, proofreading, and editing, ensuring that every piece is polished and impactful. Her expertise in crafting SEO-friendly content for multiple verticals of businesses, including technology, healthcare, finance, sports, innovation, and more.
