9 Best Unsecured Business Lines of Credit 2023

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.

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.

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.

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.

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.

Backd might not offer the largest lines of credit — or the cheapest — but Backd gets points for flexibility and speed to funding.

That’s because Backd has the most flexible repayment requirements we’ve seen for a line of credit. Backd allows for terms of six months or 12 months. As you need funds, your credit automatically reloads when you pay your balance. There is no need to contact an agent each time you need more funds.

Applying for a line of credit is just as easy. You simply apply online with your proof of ownership, most recent tax return and bank verification. You will receive an answer and funding within 24 hours. Backd's funding turnaround is one of the fastest in the biz. 

The biggest drawback is that Backd does not fund all industries. Some industries Backd will not work with include financial services, real estate services, government or non-profit agencies, cannabis, and adult entertainment to name a few. 

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.

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.

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 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 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.

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.

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 Backd to get more flexibility with borrower repayment, 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.

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.

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—especially secured credit cards.

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.