Unsecured Business Loans Market Report 2024

This Unsecured Business Loans market report covers industry characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market’s historic and forecast market growth by geography.

The unsecured business loans market size has grown rapidly in recent years. It will grow from $4.5 trillion in 2023 to $5.0 trillion in 2024 at a compound annual growth rate (CAGR) of 11%. The growth during the historic period can be attributed to the increasing number of small and medium-sized enterprises (SMEs), the rise of fintech and alternative lenders, prevailing economic conditions, and growing competition among lenders.

The unsecured business loans market size is expected to see rapid growth in the next few years. It will grow to $7.67 trillion in 2028 at a compound annual growth rate (CAGR) of 11.3%. The growth during the forecast period can be attributed to rising awareness and acceptance of unsecured business loans, increasing digitization within the industry, improved access to capital for small businesses, adoption of supportive government regulations, and easier credit access from financial institutions. Key trends in this period include digital transformation and fintech innovation, product advancements, sophisticated technologies in loan processing, blockchain technology, and innovations in online lending platforms.

The anticipated growth in small and medium-sized enterprises (SMEs) is expected to drive expansion in the unsecured business loans market. SMEs are defined by specific revenue, asset, or employee thresholds. The rise in SME numbers is fueled by economic growth, job creation, supportive government policies, and evolving social and community needs. Unsecured business loans enable SMEs to address various financial requirements without the need for collateral, facilitating growth, operational efficiency, and financial management. For example, according to the European Commission (EC), a Belgium-based executive body of the European Union, the number of SMEs in the European Union grew by 2.7% in 2022, with notable increases in several member states. Consequently, the growth in SMEs is contributing to the expansion of the unsecured business loans market.

Leading firms in the unsecured business loans market are concentrating on offering specialized loans, such as unsecured business loans for micro, small, and medium-sized enterprises (MSMEs), to help achieve business objectives and stimulate economic development. These loans do not require collateral, relying instead on the creditworthiness and financial stability of the business and its owners. For instance, in July 2023, Godrej Capital, an India-based financial services company, introduced unsecured business loans tailored specifically for MSMEs. These loans are designed to meet the distinct financial needs of various businesses, from startups to established enterprises, and feature innovative repayment structures that align with the cash flow cycles of companies, facilitating more manageable repayment schedules. This initiative addresses the specific challenges faced by businesses in accessing flexible financing options.

In June 2024, Ashv Finance, an India-based non-banking financial company (NBFC), entered into a partnership with HDFC Bank, the terms of which were not disclosed. This collaboration aims to enhance the lending capabilities of both Ashv Finance and HDFC Bank within the micro and small enterprises (MSE) sector. HDFC Bank, a leading provider of banking and financial services in India, offers a comprehensive range of products, including unsecured business loans.

Major companies operating in the unsecured business loans market are Bank of America Corporation, Wells Fargo and Co., Bank of China Limited, American Express Company, Deutsche Bank AG, HDFC Bank Ltd., Standard Chartered PLC, Bajaj Finserv Ltd., Axis Bank Ltd., Bank of Ireland Group PLC, Enova International Inc., Hero FinCorp Ltd., Bluevine Inc., Poonawalla Fincorp Ltd., Starling Bank, Funding Circle Holdings PLC, OnDeck Capital, National Funding Inc., Rapid Finance, Biz2Credit Inc., Clix Capital Services Private Limited.

North America was the largest region in the unsecured business loans market in 2023. The regions covered in the unsecured business loans market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in the unsecured business loans market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

An unsecured business loan is a type of financing that does not require collateral from the borrower. Unlike secured loans, which are backed by assets such as property or equipment, unsecured business loans depend solely on the creditworthiness and financial history of the business and its owners.

The main types of unsecured business loans include term business loans, overdrafts, loans on business credit cards, and working capital loans, among others. A term business loan involves borrowing a fixed amount of money and repaying it over a set period with interest. These loans are offered by various providers, such as banks, non-banking financial companies (NBFCs), and credit unions. They are used in a range of industries, including banking, financial services, insurance (BFSI), retail, information technology (IT), telecom, healthcare, manufacturing, energy, and utilities, and are applicable to various end-users such as small and medium-sized enterprises and large enterprises.

The unsecured business loans market research report is one of a series of new reports that provides unsecured business loans market statistics, including unsecured business loans industry global market size, regional shares, competitors with an unsecured business loans market share, detailed unsecured business loans market segments, market trends, and opportunities, and any further data you may need to thrive in the unsecured business loans industry. This unsecured business loans market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The unsecured business loans market includes revenues earned by entities by providing working capital loans, online loans, and microloans. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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