If your small business needs funds, but you don’t want to put personal assets on the line, an unsecured loan may be right for you. These loans can be tougher to qualify for, but the best ones will have competitive rates and fees.
Unsecured business loans typically come in two forms — term loans and business lines of credit. Both can be used to fund short-term needs, such as working capital or growing your business.
OnDeck
OnDeck is a well-established online lender that offers business loans and lines of credit to businesses in over 700 industries. The company is known for providing fast decisions and quick funding. In most cases, you can get a decision on your application within one business day.
The application process is also easy to understand and doesn’t require any collateral like a home or car. This saves you time and helps you focus on running your business.
Another advantage of OnDeck is that it offers a variety of different business loan options to suit your needs. They offer term loans and lines of credit, as well as short-term financing.
Term loans are the best option for newer businesses that need to finance equipment or inventory, or if you need to expand your operation. They typically come with shorter terms than lines of credit and are more expensive, but they can help you build your business credit score.
Bluevine
Bluevine is a credit line that allows businesses to borrow up to $250,000. Its terms are flexible, and it has no origination fees or prepayment penalties. It also has a low minimum credit score requirement of 625 and an easy application process.
Its online application process is quick and easy, allowing you to upload bank statements from your business checking account. Once you’ve completed your profile, a lending decision is typically delivered in less than five minutes. The lender’s quick turnaround times make it a good choice for small business owners who need access to capital quickly.
However, it’s important to note that Bluevine’s rates aren’t as competitive as other lenders. That’s because it’s a fintech, not a traditional lender.
This means you’ll pay higher interest than other businesses with the same borrowing limit. If you need to borrow a significant amount of money, it’s best to look elsewhere for a better deal on your financing.
A Bluevine business line of credit can be used to purchase inventory, finance accounts receivables, cover payroll expenses, or manage other short-term cash flow needs. It can be drawn from as needed, and you can repay it in 26 weekly payments or 12 monthly installments.
Credibly
Credibly is an online lender that offers a wide variety of financial products, including business loans and lines of credit. Its small business loans and merchant cash advances are designed to help entrepreneurs expand their businesses and achieve their goals.
Credibly works with business owners to find the best loan to fit their needs, and it also provides customer support through phone, email, and chat. Its representatives are helpful and friendly, and hold times are usually short.
When applying for a Credibly loan, you’ll be required to fill out an online application that includes self-reported information about your business. This process will determine whether or not you prequalify for a business loan and how much funding you’ll receive.
If you’re approved, you’ll be given an offer from Credibly that includes the amount of money you qualify for and repayment terms. You can then sign a business loan agreement to finalize the deal and get your funds transferred to your account.
Before depositing your funds, Credibly will perform a hard credit pull. This can negatively impact your credit score by a few points.
The process can take up to three to five business days, and Credibly will deposit the money into your bank account after that. However, same-day funding is possible, so you might be able to receive your funding sooner than that.
Rapid Finance
Rapid Finance is a direct lender that offers a variety of business financing products. These include SBA loans, small business term loans, lines of credit, bridge loans, and commercial real estate loans. In addition, Rapid Finance provides merchant cash advances and invoice factoring products to businesses with accounts receivable and outstanding invoices.
The loan process at Rapid Finance is simple. You fill out a short application and submit your documents, and if you qualify for a loan, they’ll send funds to your business bank account as soon as possible.
Unlike traditional lenders, Rapid Finance looks at your overall performance as well as your credit score. This helps it assess your business’s health and ensure you have a better chance of securing a loan that will help you grow.
Once approved, the loan amount will be deposited into your business bank account and you’ll have up to six months to repay it. This is a great option for those who need a quick cash infusion and don’t want to wait around for traditional bank approvals.
However, this loan type also comes with high-interest rates and other fees. It’s important to understand these fees before deciding whether to use Rapid Finance or any other lender.