Secured vs Unsecured Business Loan
SBA loans, bank term loans, and online business financing - comparing secured and unsecured options with 2026 rate data.
Business Loan Comparison: All Types
| Loan Product | Secured/Unsecured | 2026 APR Range | Max Amount | Typical Timeline |
|---|---|---|---|---|
| SBA 7(a) standard | Secured | 5.6% - 8.0% | $5 million | 60 - 90 days |
| SBA 504 | Secured | 5.6% - 6.5% | $20 million | 60 - 90 days |
| SBA Microloan | Often unsecured | 8% - 13% | $50,000 | 30 - 45 days |
| Bank term loan (secured) | Secured | 6% - 13% | $1M+ | 30 - 60 days |
| Online unsecured business loan | Unsecured | 15% - 35% | $500,000 | 1 - 5 days |
| Business line of credit (secured) | Secured | 6% - 15% | $500K+ | 1 - 4 weeks |
| Business line of credit (unsecured) | Unsecured | 12% - 24% | $250,000 | 1 - 3 days |
| Revenue-based financing | Unsecured | 20% - 60% eff. rate | $2 million | 1 - 5 days |
Rates as of April 2026. SBA rates are based on prime rate plus SBA maximums. Online lender rates are annualised and depend heavily on business revenue and credit profile.
Collateral Types for Business Loans
Compare Business Lines of Credit
For a detailed breakdown of secured and unsecured business lines of credit, including lender comparison tables, visit bestbusinesslineofcredit.com.
Frequently Asked Questions
Are SBA loans secured or unsecured?
Most SBA loans are secured. The SBA 7(a) program typically requires collateral for loans above $25,000 - the lender must take all available collateral up to the loan amount. SBA 504 loans are always secured, backed by real estate or major equipment. SBA microloans (up to $50,000) are often available without traditional collateral but may require a personal guarantee and good credit.
Can I get an unsecured business loan with no collateral?
Yes. Many online lenders (OnDeck, Kabbage, Fundbox) offer unsecured business loans based on business revenue, time in business, and credit score rather than physical assets. Rates are higher (typically 15-30%) and terms shorter (1-5 years), but approval can happen in hours. Most require at least 6-12 months in business and $50,000+ in annual revenue.
What collateral do lenders accept for business loans?
Business collateral includes commercial real estate, business equipment and machinery, inventory, accounts receivable (receivables financing), business vehicles, and intellectual property in some cases. Most secured business lenders also require a personal guarantee from the business owner, which means your personal assets can be pursued if the business cannot repay.
What is a business line of credit and is it secured or unsecured?
A business line of credit gives you access to revolving funds up to a set limit. It can be either secured or unsecured. Secured business lines (backed by real estate or blanket lien on business assets) offer lower rates of 6-15%. Unsecured business lines are available for 12-24% or higher. Lines of credit are typically used for working capital, inventory, or short-term needs rather than capital purchases.
How long does it take to get an SBA loan?
SBA loans are not fast. The SBA 7(a) standard loan typically takes 60-90 days from application to funding. The SBA Express loan program (up to $500,000) is faster, with SBA responding within 36 hours, but bank processing still takes 30-45 days. If you need business capital within a week, online unsecured lenders or a business line of credit are more realistic options.