9 Best Unsecured Business Lines of Credit 2022

We found unsecured lines of credit with the lowest rates, most flexible borrower requirements, and other great benefits.
Best overall
Lendio
Lendio
4.3 out of 5 stars
4.3
  • pro
    560 min. credit score
  • pro
    Up to $500,000
Lowest rates
BlueVine
Bluevine
3.9 out of 5 stars
3.9
Starting at
4.8% interest
  • pro
    600 min. credit score
  • pro
    Up to $250,000
Another great marketplace
Fundera
Fundera by Nerdwallet
3.1 out of 5 stars
3.1
Starting at
7% interest
  • pro
    630 min. credit score
  • pro
    Up to $1 million
Most flexible requirements
Fundbox
Fundbox
2.9 out of 5 stars
2.9
Starting at
4.66% draw rate
  • pro
    600 min. credit score
  • pro
    Up to $150,000
Best repeat borrowing
OnDeck
OnDeck
2.9 out of 5 stars
2.9
  • pro
    600 min. credit score
  • pro
    Up to $100,000

Data as of 6/30/22. Offers and availability may vary by location and are subject to change.

We are committed to sharing unbiased reviews. Some of the links on our site are from our partners who compensate us. Read our editorial guidelines and advertising disclosure.

For many business owners, business lines of credit (LOCs) offer an ideal way to get working capital. Except there’s one problem: Lenders often want collateral to secure the credit line.

But don’t give up on your credit line dreams just yet. We’ve rounded up nine lenders that offer unsecured credit lines (meaning they don’t require specific collateral to secure them). Of them, we think Lendio offers the best options for most business owners, since it’s an accessible marketplace that lets you shop around. But there’s plenty to like about our other picks as well.

Let’s find the right collateral-free credit line for your business.


Our top-rated lender: Lendio

Lendio partners with over 75 lenders, which improves your odds and efficiency to get the funding you need.

Qualifications:

Money Approach

$50k in revenue

Calendar Approach

6 mos. in business

Analysis Approach

560 credit score


Compare the best unsecured business lines of credit

Brand
Min./max. line amount
Lowest listed rate
Repayment term
Get a credit line

Lendio

$1,000/$500,0001–2 yrs.

Bluevine

$5,000/$250,0004.8% interest6–12 mos.

Fundera by Nerdwallet

$10,000/$1 million7% interest3–18 mos.

Fundbox

Up to $150,0004.66% draw rate12–24 wks.

OnDeck

$6,000/$100,00012 mos.

Data as of 6/30/22. Offers and availability may vary by location and are subject to change.

How unsecured is an unsecured line?

We want to be clear: You won’t find any truly unsecured credit lines for business―they all require at least a personal guarantee or UCC lien

Now, unsecured lines of credit are still unsecured in the sense that they don’t require any specific type or amount of collateral. You don’t need real estate equity to borrow against, for example. Instead, you’ll secure your line of credit with general business assets.

That makes unsecured lines of credit more accessible for more business owners.

But keep in mind, that accessibility does come at a cost. Unsecured lines (even with a UCC lien or personal guarantee) usually come with higher interest rates than lines that get secured by collateral.

Still, you can get some solid deals. So let’s look at specific lenders.

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Lendio: Best overall unsecured business line of credit

Lendio
Lendio
  • pro
    560 min. credit score
  • pro
    $50,000 min. annual revenue
  • pro
    6 mos. min. time in business

Data as of 6/30/22. Offers and availability may vary by location and are subject to change.

Most business owners should start their search for an unsecured line of credit with Lendio.

Here’s why: Lendio doesn’t actually offer its own LOCs, but it does partner with lots of lenders who do (including some on this very list). So when you submit an application with Lendio, it shops around with those partners to find the best deal for you. After a couple days, it comes back with the best matches and lets you choose the right financing for your business.

At that point, you’ll work directly with the lender to finalize your application and get funding.

The result? You get to comparison shop with almost no work on your part. That means you can choose the unsecured LOC that fits your needs―whether it’s the one with the lowest rates, the longest terms, or some other criteria.

That’s not to say Lendio is perfect for everyone. For example, some businesses need that LOC, like, yesterday. Given that Lendio’s matchmaking process takes time, you’ll be better off with a faster lender (like Kabbage or Fundbox). Or if, say, there’s a lender you’re really interested in that Lendio doesn’t partner with. In that case, you might prefer to apply directly with your lender of choice.

For most businesses though, Lendio can help save you time and money with its matchmaking marketplace. And that makes it our favorite place to get an unsecured business line of credit.

Pros
pro Fast application
pro Wide variety of funding and lenders
pro Personalized guidance and expertise
Cons
con High interest rates on some credit lines
con Reports of hard credit inquiries

Bluevine: Lowest interest rates

BlueVine
Bluevine
  • con
    Starting at 4.8% interest
  • pro
    600 min. credit score
  • pro
    $10,000 min. monthly revenue
  • pro
    6 mos. min. time in business

Data as of 6/30/22. Offers and availability may vary by location and are subject to change.

Looking for the best interest rate you can get? Then say hello to Bluevine.

Bluevine offers lines of credit that have very low starting interest rates―under 5%. When many other online lenders have starting rates in the double digits (or worse, use a factor rate or draw rate instead of interest), BlueVine starts looking like a very affordable alternative. And you don’t have to sacrifice a credit limit or repayment term to get those low rates, as Bluevine offers competitive limits and terms.

Now, you’re not guaranteed to get that low of a starting rate from Bluevine. Your rate will depend on a number of factors, like your credit history. And speaking of your credit report, we should point out that Bluevine has pretty strict borrower requirements for an online borrower (though most banks have stiffer requirements still). To get Bluevine’s great rates, you’ll need a solid application.

If you’ve got what it takes to apply, though, Bluevine’s low starting rates should make it your first stop.

Pros
pro Low starting rates
pro Monthly payments on some lines
pro Same or next-day funding
Cons
con High borrower requirements
con Potentially large fees

Fundera by Nerdwallet: Another great marketplace

Fundera
Fundera
  • Starting at 7% interest
  • pro
    630 min. credit score
  • pro
    $180,000 min. annual revenue
  • pro
    1 yr. min. time in business

Data as of 6/30/22. Offers and availability may vary by location and are subject to change.

Here’s the deal: Fundera by Nerdwallet works just like Lendio. It’s another lending marketplace that matches you with suitable loans and lines of credit.

So just like Lendio, Fundera can save you money (by finding you the best rates you qualify for) and time (by applying with multiple lenders at once). The only real difference? Fundera works with a slightly different set of lenders than Lendio does. There’s some overlap, yes, but if you have strong lender preferences or want to cover all your bases, then you may want to apply to Fundera instead of or in addition to Lendio.

Since Fundera works a lot like Lendio, it does have some of the same downsides. It won’t offer the fastest funding out there, for example. You’ll have to stay patient. And Fundera, as we just mentioned, doesn’t work with every single lender out there, so you could miss out on a great deal from a lender Fundera doesn’t partner with.

Still, those are minor concerns when compared with the advantages of Fundera’s matchmaking features.

Pros
pro Access to many loans and lenders
pro Dedicated loan specialists
pro Business credit card recommendations
Cons
con Longer funding turnaround times
con Lack of transparency

Fundbox: Best for flexible requirements

Fundbox
Fundbox
  • Starting at 4.66% draw rate
  • pro
    600 min. credit score
  • pro
    $100,000 min. annual revenue
  • pro
    6 mos. min. time in business

Data as of 6/30/22. Offers and availability may vary by location and are subject to change.

Until recently, Fundbox had some of the lowest borrower requirements out there. It’s recently raised those requirements, but it still offers a lot of flexibility.

What do we mean by that? Well, for starters, Fundbox still has pretty low, competitive borrower requirements. It accepts young businesses with only a fair credit score. But Fundbox is willing to budge even on those low requirements. As its support center says, a six-month-old business with $100,000 is “ideal,” but you can apply with less―because Fundbox understands and helps growing businesses.

You may have guessed those flexible requirements come with a tradeoff. In this case, it takes the form of high fees and short repayment terms. You’ll have an easier time getting a Fundbox credit line than many other LOCs, but you do end up paying for it―and soon. In fact, Fundbox has the shortest repayment terms of any lender on this list. Worth it? You’ll have to decide for yourself.

Even with those caveats, Fundbox’s flexible borrower requirements make it a standout lender worth looking into.

Pros
pro Automated applications
pro Low approval requirements
pro Fast funding
Cons
con Low maximum loan amounts
con High APR

OnDeck: Best for repeat borrowing

OnDeck
OnDeck
  • pro
    600 min. credit score
  • pro
    $100,000 min. annual revenue
  • pro
    1 yr. min. time in business

Data as of 6/30/22. Offers and availability may vary by location and are subject to change.

Do you plan on borrowing more in the future? Think about starting a relationship with OnDeck.

OnDeck offers nice incentives for repeat borrowers―incentives like lower interest rates, reduced fees (including origination fees), and even waived interest on some existing loans. Plus, OnDeck is one of the few online lenders that reports your unsecured debt and repayment to major credit bureaus. That means OnDeck can actually improve your credit score, so you’ll have an easier time getting approved for future financing.

Of course, you’ll need to make timely payments if you want to reap the benefits of OnDeck’s credit bureau reporting. And before you commit to anything, we should let you know that OnDeck has high interest rates (At least it has fairly low borrower requirements.)

But when all is said and done, OnDeck can put you in a sweet spot for future borrowing.

Pros
pro Discounts for repeat borrowers
pro Credit bureau reporting
pro Fast funding times
Cons
con High starting APR
con Relatively high borrower requirements

Honorable mentions

The online lenders above offer the best unsecured lines of credit, thanks to their combinations of accessibility, affordability, and customer reviews. But if you’re not sold on them, these other lenders might catch your fancy.

Compare honorable mention lines of credit

Brand
Min./max. line amount
Lowest listed rate
Repayment term
Get a credit line

Kabbage

$1,000/$150,0000.25% monthly fee
6–18 mos.

Bank of America

Starting at $10,0004.5% interest
Unlisted

US Bank

Up to $100,000Unlisted
Unlisted

KeyBank

$10,000/$500,000Unlisted
Unlisted

Data as of 12/10/21. Offers and availability may vary by location and are subject to change.

Kabbage

Kabbage
Kabbage
  • Starting at 0.25% monthly fee
  • pro
    Min. credit score unlisted
  • pro
    Min. revenue unlisted
  • pro
    1 yr. min. time in business

Data as of 6/30/22. Offers and availability may vary by location and are subject to change.

Kabbage offers unsecured credit lines of decent size and with relatively long repayment terms. Its real advantage, though, has to be its repayment schedule. Kabbage is one of the few online lenders that sticks with a more traditional monthly payment schedule, rather than weekly or daily payments. That frees up your cash for the rest of the month.

On the other hand, Kabbage is one of the more expensive options on this list. And more annoyingly, it uses confusing monthly rates (instead of interest) to hide that fact

All the same, you might find that Kabbage’s monthly payments make it worth the higher costs.

Bank of America

Bank of America
Bank of America
  • Starting at 4.5% interest
  • pro
    Min. credit score unlisted
  • pro
    $100,000 min. revenue
  • pro
    2 yrs. min. time in business

Data as of 6/30/22. Offers and availability may vary by location and are subject to change.

Bank of America offers really low interest rates on its unsecured credit lines (sometimes even lower than BlueVine). And if you participate in Bank of America’s Preferred Rewards for Business program, you can get further discounts on your interest rate. That could make Bank of America one of the most affordable unsecured lines of credit around.

So what’s the catch? Well, Bank of America is a traditional bank. Unlike the online lenders above, traditional banks have pretty strict applicant requirements (especially when it comes to your credit report). Their financing products are harder to qualify for. Heck, to even enroll in Preferred Rewards, you need $20,000 in Bank of America business bank accounts.

If you have what it takes to qualify, though, Bank of America offers some of the best deals on credit lines we’ve seen.

US Bank

US Bank
US Bank
  • Interest rates unlisted
  • pro
    Min. credit score unlisted
  • pro
    Min. revenue unlisted
  • pro
    2 yrs. min. time in business

Data as of 6/30/22. Offers and availability may vary by location and are subject to change.

US Bank actually has a few different business lines of credit. If you’re looking for the unsecured one, though, you want its Business Cash Flow Manager. The unsecured version goes up to $100,000. And though US Bank doesn’t list any kind of interest rate, banks usually have low, competitive rates (as we showed with Bank of America).

But again, traditional banks also want to see excellent credit and lots of business. So US Bank’s unsecured credit line won’t be the easiest to qualify for. And depending on the size of your LOC, US Bank might charge you an annual fee. Smaller credit lines (of $50,000 or less) come with a $150 annual fee. Deal breaker? No. Bummer? Yes.

Even so, well-qualified businesses looking for credit lines over $50,000 might find low rates at US Bank.

KeyBank

Key Bank
KeyBank
  • Interest rates unlisted
  • pro
    Min. credit score unlisted
  • pro
    Min. revenue unlisted
  • pro
    Min. time in business unlisted

Data as of 6/30/22. Offers and availability may vary by location and are subject to change.

Another traditional bank, KeyBank has both secured lines and unsecured lines for business. Unfortunately, it doesn’t list interest rates (but we expect them to be pretty low). And like other banks, KeyBank offers little perks like a monthly repayment schedule (instead of weekly or daily) and larger credit line amounts.

As you can already guess, though, we have to point out that a KeyBank line of credit will be harder to qualify for than a credit line from an online lender. Not to beat a dead horse or anything, but traditional lenders really want that excellent credit history (while alternative lenders will often accept fair credit).

But as we’ve said with other traditional banks, KeyBank is worth looking into if you have the credit history to qualify and you want a great interest rate.

Want more options? Fund your business with a personal loan.

The takeaway

Fortunately, there are quite a few available credit lines that don't require collateral. We think Lendio offers the best source of unsecured LOCs, but it's just one of many lending companies offering the credit you want.

Bluevine offers surprisingly low rates for an online lender, while Fundera by Nerdwallet gives you another good way to shop around for offers. Or you can go with Fundbox to get more flexibility with borrower requirements, or maybe OnDeck to secure better borrowing in the future.

So whether you want a lower rate, a higher credit line, or the most accessible requirements, we've found unsecured business lines of credit that can work for you.

Worried about passing your credit check when you apply for an LOC? Learn more about why your personal credit score matters to lenders―and what you can do to get a good credit score.

Related reading

Methodology

We looked at both traditional and online lenders that offer business lines of credit to get our contenders for the best unsecured credit lines. After narrowing things down to lenders that offer unsecured lines, we graded them on interest rates, line fees, customer reviews, and more. Then we used those grades to rank and review the remaining lenders.

Unsecured business line of credit FAQ

What unsecured business line of credit is easiest to get?

If you’re worried about qualifying for an unsecured business LOC, we recommend applying with Lendio. While it doesn’t lend itself, it shops around for you to find the best financing you can qualify for. And if Lendio decides you can’t qualify for a line of credit (because of poor credit, for example), it may show you other, non-LOC financing options.

Of course, Lendio isn’t your only option. Mostly we suggest you stick to online lenders, as business lines of credit from online lenders tend to be easier to get than credit lines from traditional lenders.

Is it better to have an unsecured credit line or a secured credit line?

Both an unsecured line of credit and a secured line of credit can work well for your business―it mostly just comes down to your current needs.

If you need a credit line ASAP or you simply don’t have collateral to offer, then an unsecured credit line will work better for you. But if you care more about low interest rates and long repayment terms, you’ll prefer a secured line of credit.

For more information, we’ve got a guide to unsecured loans.

How does an unsecured credit line compare to an unsecured credit card?

An unsecured credit card differs from an unsecured credit line a few ways.

Both an unsecured card and an unsecured line of credit give you revolving credit, so you can borrow, repay, and borrow again. Generally speaking, though, a line of credit will have a higher credit limit, while a business credit card will come with a lower credit limit. The same is true of interest rates―your average unsecured line of credit has a lower interest rate than your average unsecured card. (The specifics, of course, will depend on your card issuer or lender.)

Plus, lines of credit make it easier to get a cash advance (though you’re more likely to get cash rewards with unsecured credit cards).

Keep in mind, though, that credit lines are often harder to get. Many lenders require a high credit score to get a line of credit, whereas a credit card company may accept a fair or even bad credit score.

Want more details? Take a look at our detailed breakdown of lines of credit vs. credit cards.

Disclaimer

At Business.org, our research is meant to offer general product and service recommendations. We don't guarantee that our suggestions will work best for each individual or business, so consider your unique needs when choosing products and services.

Chloe Goodshore
Written by
Chloe Goodshore
Chloe covers business financing and loans for Business.org. She has worked with many small businesses over the past 10 years, from video game stores to law firms. Those years watching frustrated business owners try to sift through their many options gave her a passion for breaking down complex business topics. She wants to help business owners spend less time agonizing over their businesses so they can spend more time running them.
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