Term loans are unsecured business loans provided by banks or online lenders, where a business receives a fixed sum of money upfront and repays it, usually in equal monthly installments, over a predetermined period, typically 1 to 5 years. Since these are unsecured, they don't require any collateral, but interest rates may be higher and eligibility criteria stricter. They are suitable for businesses needing capital for expansion, equipment purchases, or other large investments.

A business line of credit is an unsecured revolving credit option similar to a credit card, where businesses get approved for a maximum credit limit and can draw funds as needed up to that limit. Repayment can be made in part or in full at any time, and interest is only paid on the amount drawn. This flexibility makes it useful for managing cash flow fluctuations, purchasing inventory, or covering short-term expenses. Since no collateral is required, approval is based on business creditworthiness and revenue.

Invoice financing, also known as accounts receivable financing, is an unsecured loan product where businesses use their outstanding invoices as a basis to borrow money. Lenders advance a percentage of the invoice value (often 70-90%) and the balance, minus fees, is paid once the invoice is collected. This type of loan helps businesses quickly access working capital tied up in unpaid invoices, without needing to pledge physical assets as collateral. It is ideal for companies with long payment cycles or cash flow challenges due to delayed customer payments.