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Updated Apr 13, 2023

Small Business Loans for Startups and New Businesses From $50,000 to $100,000

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Donna Fuscaldo, Staff Writer

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Taking on a significant amount of debt to launch your new venture can be downright scary, especially since it may be three to five years before your business turns a profit.

A small business loan of $50,000 to $100,000 may be all that your small business needs to grow. For example, a $50,000 to $100,000 loan can help pay for such things as equipment, rent and advertising. With a $100,000 business loan, most small businesses have enough capital to get off the ground.

You can apply for a secured or unsecured loan. A secured loan requires that you put up something of value in case you default on the loan; an unsecured loan, however, doesn’t require capital, and this type of loan can be ideal for startups.

Unsecured business loans of $50,000 to $100,000 can be used to do the following:

  1. Start your business. You may not have any personal funds or investor capital to back your fledgling venture when starting out.
  2. Expand your business. When your business is showing some signs of success, but you need more money to grow, a loan of $100,000, for instance, can allow you to purchase the things you need to expand. 
  3. Improve your cash flow. If your business provides a service, there may be a delay between when you perform the service and when you receive payment. Loans can help you through these periods.
Did You Know?Did you know

Many of the best business loan providers are willing to lend $50,000 to $100,000 to business owners.

How do unsecured business loans work, and what are the different types of loans?

Lenders provide unsecured business loans as a small business financing option for startups and other small businesses looking to get a loan without putting up collateral.

When applying for a small business loan with a bank, you must provide collateral to secure your loan. This comes in the form of extra money that is paid upfront, or it can be a lien placed on various business assets. A lien is a financial term for the assets the lender “holds” until the loan is repaid. Secured business loans can limit small business flexibility and the ability of the company to secure additional loans.

With unsecured business loans, sometimes lenders won’t require collateral but will require a personal guarantee, which is a legally binding agreement with the lender that says you will pay the loan back.

Whether an unsecured loan is the best funding solution for your business largely depends on your personal financial situation; however, even though the lender may not require collateral, they may raise the interest rate or add application requirements to protect their investment.

What will also vary widely is the interest rate. There is no set interest rate for unsecured business loans; each lender will likely have a different interest rate. Your rate, however, will likely be higher than the interest rate for a traditional bank loan. By offering an unsecured loan and not requiring collateral, the lender takes on more risk by accepting your loan. When the risk is higher for the lender, the interest rate is higher. There’s no such thing as an unsecured business loan with a low interest rate.

Common types of unsecured loans include merchant cash advances, working capital loans and business lines of credit.

FYIDid you know

There are abundant options for unsecured small business loans. Which loan type makes sense for you depends on your credit score, why you need the money and how long you need it.

Editor’s note: Looking for a business loan? Fill out the below questionnaire to be connected with vendors that can help.

How can you get an unsecured business loan?

Several alternative lenders provide small businesses with unsecured loans. Depending on the type of loan you need, you can likely find a lender that will provide one to you, and with no personal guarantee. Again, the interest rate and fees are likely to be higher.

Applying for unsecured loans usually involves reviewing a company’s loan offerings and filling out an application online or over the phone. The company will review your business information, as well as your credit score and financial statements, to determine whether your business qualifies for the loan. Many unsecured loans are short-term loans that are paid back in just over a year.

When you apply for an unsecured loan with an alternative lender, you’ll likely need to provide documentation about your business’s financial stability. It’s important to review each lender’s website to determine what their requirements are. We recommend having basic personal documents ready, such as a government-issued photo ID, recent bank statements, credit card processing information and maybe even tax returns. 

What credit score do you need to get an unsecured business loan?

This will vary by lender. In our comprehensive review of SBG Funding, we found that it accepts credit scores as low as 500. Many lenders may advertise their flexibility, but the tried-and-true rule is the better your credit score, the more likely you are to get approved for a loan. A credit score around 700 is usually considered good, with 800 and up being the best.

Your best bet is to talk directly to the lender about your situation. There are no hard-and-fast rules for unsecured business loans; if you have a poor credit score, do your best to negotiate a deal with a bank or an online lender.

TipBottom line

Before applying for a small business loan, find out what your credit score is. If it’s low, you may want to improve it before applying. If it’s high (which usually means around 700 and up), you should get a good interest rate on your loan.

How long do you need to be in business to get an unsecured business loan?

Alternative lenders are willing to take on more risk than traditional banks or credit unions, but they do require you to have an operational business. As a result, many alternative lenders want you to show that you can run a business, but requirements vary for how many years of business you need to have under your belt. In our review of Rapid Finance, we found that it requires you to have been in business for only three months. On the higher side, our full review of Biz2Credit revealed that it requires 18 months in business.  

What are the annual sales requirements to get an unsecured loan? 

Whether you want to borrow $50,000 or $100,000, lenders want to make sure your business has sales. You may not be profitable, but you do have to show you have customers and revenue. To mitigate the risk of the business failing and the small business owner defaulting on the loan, lenders on unsecured loans require business owners to have a minimum amount of annual sales. 

Again, it varies from one lender to the next. Our review of Balboa Capital found that it had more stringent requirements. It requires $300,000 in annual sales for some of its loan products. Our full review of Accion found more relaxed requirements – only $50,000 in annual sales. 

Are unsecured loans safe?

Unsecured loans are safe, but have a lawyer look at your loan documents. In some cases, a lender may have you sign a personal guarantee, which makes you personally liable if your business defaults on the loan. This can apply to you and your business partners. 

Bottom LineBottom line

Whether you are borrowing from a bank or an alternative lender, it’s important to understand the total cost of borrowing. That includes the interest rate and any other fees. The annual percentage rate (APR) will tell you that. Make sure you read the fine print of your loan agreement so that you are clear on all of those details.

Lenders that provide unsecured loans

It’s often not difficult to get a $50,000 or $100,000 business loan if you have good credit and a solid business plan. There are hundreds of lenders throughout the U.S. that can provide unsecured small business loans. If you’re interested in applying for an unsecured business loan for your startup or small business, here are two reputable companies you may want to consider:

  • Fora Financial provides small businesses and startups with various unsecured small business loans. Fora’s pricing model is unique in that it does not charge traditional interest rates. Instead, you borrow and pay back a fixed amount based on the financial stability of your business. Fora Financial does not charge additional fees or require collateral. Learn more in our complete review of Fora Financial.
  • Noble Funding, our best pick for customer service, provides unsecured small business loans, cash advances and bridge loans. Noble doesn’t require collateral or even a personal guarantee. You can expect loan terms ranging from four to 18 months, with no upfront or closing fees. Learn more in our full review of Noble Funding.

Matt D’Angelo contributed to the writing and research in this article.

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Donna Fuscaldo, Staff Writer
Donna Fuscaldo is a senior finance writer at and has more than two decades of experience writing about business borrowing, funding, and investing for publications including the Wall Street Journal, Dow Jones Newswires, Bankrate, Investopedia, Motley Fool, and Most recently she was a senior contributor at Forbes covering the intersection of money and technology before joining Donna has carved out a name for herself in the finance and small business markets, writing hundreds of business articles offering advice, insightful analysis, and groundbreaking coverage. Her areas of focus at include business loans, accounting, and retirement benefits.
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