Best Small Business Loan Providers – Your Leg Up
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Finding the best business loans is like shopping for a mortgage or personal loan—each option has unique advantages. To find the right fit, it's important to compare features. We've simplified the process by highlighting top online lenders, which offer alternatives to traditional financial institutions. Whether your business is new or established, understanding loan options is a smart decision.
In this article
Big Think Capital provides business borrowers with a straightforward and transparent funding platform.
- Business lines of credit from $10k – $1m
- Term as long as 5 years
- Rates as low as 7%
- Decisions as fast as 24 hours
- Quick access to your funds once approved
- Applying won't affect your credit score
Overview of the best small business loan providers
- Best for those in need of extra cash: BlueVine
- Best for wide financing options: Big Think Capital
- Best for those who need term loans fast: OnDeck
- Best for full range of funding options: Funding Circle
- Best for few fees: FundBox
- Best for commercial real estate needs: Biz2Credit
- Best for micro loans: Kiva
- Best for American Express customers: American Express
- Best for a super-fast funding process: Rapid Finance
Compare the best small business loan providers
Lender | Description | Minimum credit score | Loan amounts |
BlueVine offers lien of credit upto $250,000 | 625 | Up to $250,000 | |
Big Think Capital offers a wide range of loan options to choose from. | 550 | 10,000 to $2 million | |
OnDeck offers flexible loan options to meet the cash needs of a business. | 625 | $5,000 to $250,000 | |
Funding Circle offers business line of credit, term loans and SBA loans. | 650 | $30,000 to $500,000 | |
The AI-powered financial company offers business lines of credit. | 600 | Up to $150,000 | |
Biz2Credit connects business owners with several loan options to choose from. | 580 | $10,000 to $5 million | |
A crowdfunding platform that focuses on communities that do not easily get access to funds. | No minimum | No set amounts | |
A popular name in the industry, American Express offers multiple loan options and complete banking services. | 640 | $2,000 to $250,000 | |
Known for quick financing, Rapid Finance has a low minimum and has fast approval. | N/A | Starting at $5,000 |
Best for those in need of extra cash: BlueVine
Pros & cons
Pros
- Straightforward application.
- Offers multiple services.
- Quick approval.
Cons
- High interest rates.
- Not available in all states.
Founded in 2013, BlueVine specializes in servicing small business owners. It is a financial technology company (fintech) and does not fall under the traditional bank category. It also does not offer a conventional loan but offers options for a business to access cash.
Lines of credit are offered for up to $250,000 at rates as low as 7.8%. To become eligible, you must have a credit score of 625 or more, your business must have been in operation for at least 24 months, and it must generate at least $40,000 monthly in revenue. The line of credit isn't available in Nevada, North Dakota, and South Dakota.
Visit BlueVine
Or read Joywallet's review of BlueVine.
Best for wide financing options : Big Think Capital
Pros & cons
Pros
- Wide range of loan options.
- No application fees.
- No prepayment penalties.
- Quick funding.
Cons
- Not available across all states.
- Strict eligibility criteria in terms of annual revenue.
Big Think Capital is a financial service provider that helps business owners find the capital they require. The company has helped fund over 10,000 businesses, and facilitated over $500 million in loans. It has a quick and easy application process and charges no application fees.
Big Think Capital will run a soft credit check when you apply for a business loan. It has flexible loan terms with no specific credit score requirements. It offers a business line of credit for an amount ranging from $10,000 to $1 million with an interest rate starting at 7%. It offers equipment financing, commercial real estate loan, SBA loan, invoice financing and merchant cash advance.
Visit Big Think Capital
Or read Joywallet's review of Big Think Capital
Best for those who need term loans fast: OnDeck
Pros & cons
Pros
- Offers same day funding.
- Applicants do not require a business credit score.
Cons
- Good credit score is required.
- Businesses need to have at least $100,000 in annual revenue.
- Might not be a suitable option for startups.
OnDeck, formed in 2006, specializes in lending to small businesses. It offers various options for small businesses, including lines of credit and term loans.
The line of credit is designed to be flexible to meet the needs of irregular cash flow. Amounts start at $6,000 and increase up to $100,000. The revolving business lines of credit allow you to access the cash when needed, and then the business is subject to a 12-month repayment period. Term loans from OnDeck range from $5,000 to $250,000 at an APR of at least 29.9%. Repayment can be made over 24 months.
To become eligible for either of these products, your business must be at least one year old and generate $100,000 or more in revenue. Your FICO score must be at least 625 and you must have a business checking account. OnDeck does not lend to Nevada, North Dakota, and South Dakota businesses.
Visit OnDeck
Or read Joywallet's review of OnDeck.
Best for full range of funding options: Funding Circle
Pros & cons
Pros
- A dedicated loan specialist to help borrowers.
- Various loan types to choose from.
Cons
- Only provides peer-to-peer lending services.
- It is a marketplace that will connect you with a lender.
Funding Circle is an online lending platform specializing in small business funding and has connected over 130,000 small businesses to over $19 billion in funds. It offers three major loan products: business lines of credit, business term loans, and the SBA(7)a loan.
The business line of credit allows you to borrow $25,000 to $250,000, incurring an average draw fee of 1.6%. The business term loan lets you borrow $25,000 to $500,000, with repayment in as little as six months or as much as seven years.
The SBA(7)a loan is federally backed with a flat 8% interest rate (as of this writing). You can borrow $25,000 to $500,000. Repayment can be made in up to 10 years. Your business must be established for at least two years, so this wouldn’t be a good option for a startup. You also need a minimum annual revenue of $50K and a 660 FICO score for eligibility.
Visit Funding Circle
Or read Joywallet's review of Funding Circle.
Best for few fees: FundBox
Pros & cons
Pros
- Easy application process.
- Quick approval.
- Minimum credit score requirement of 600.
Cons
- Business line of credit only available upto $150,000.
- Applicants with a score below 600 will not qualify for the loan.
Fundbox was established in 2013 as another AI-powered financial company focused exclusively on small businesses. Since its founding, it has released over $3 billion in funding to 500,000 businesses.
The business line of credit offers loans of up to $150,000. To qualify, your credit score must be at least 600, and your business must be at least six months old and generate annual revenue of at least $100,000 to qualify.
Visit Fundbox
Big Think Capital provides business borrowers with a straightforward and transparent funding platform.
- Business lines of credit from $10k – $1m
- Term as long as 5 years
- Rates as low as 7%
- Decisions as fast as 24 hours
- Quick access to your funds once approved
- Applying won't affect your credit score
Best for commercial real estate needs: Biz2Credit
Pros & cons
Pros
- Straightforward application process.
- Quick approval.
- Interest-only repayments available.
- High loan amount.
Cons
- Not available in all states.
- High interest rates.
Biz2Credit connects business owners with lenders and various loan options.
Biz2Credit's business line of credit provides loans of $10,000 to $1 million at interest rates of 7% to 25%. Repayment can be made in six months to five years. To become eligible, you must have a personal FICO score of 580+, and your business must be at least one year old, generating an average monthly revenue of $10,000.
You can also take an SBA loan of $5,000 to $5 million at rates as low as 6.5%. This loan is funded in at least 30 days, and you can repay the money in five to 25 years.
Biz2Credit also offers equipment financing up to 100% of equipment value, merchant cash advances of up to $250,000, unsecured business loans of up to $100,000, and business acquisition loans of up to $5 million.
Visit Biz2Credit
Or read Joywallet's review of Biz2Credit.
Fast and flexible financing for your business
Running a business takes everything you have. Getting fast and easy funding doesn't have to.
- Apply Online In Minutes
- Decision as fast as 24 hours
- Receive between $25k-$6m
Best for micro loans: Kiva
Pros & cons
Pros
- No fees.
- A user-friendly platform.
- Focuses on underserved communities.
Cons
- The website is more lender-centric.
- No guarantee of approval.
- May not be suitable for all businesses.
Kiva is an entirely new concept with small business lending and would fall under the “alternative lenders” category. Founded in 2005 as a non-profit based in San Francisco, Kiva offers microloans, where borrowers can ask for funding for various needs, including business needs, tuition, financial assistance, and multiple other applications.
Kiva works by soliciting donations from the public. Contributors can lend as little as $25, and Kiva then invests their money. For borrowers, applicants apply for funding through Kiva, and once it goes through the underwriting process, the loan is then crowdsourced.
Kiva works with borrowers across the globe and focuses on applicants who might not have access to lending and funding like other countries might have. All funding donated to Kiva goes directly to the loans for the borrowers.
Visit Kiva
Or read Joywallet's review of Kiva.
Best for American Express customers: American Express
Pros & cons
Pros
- Quick approval.
- No origination fees.
- User-friendly mobile app.
Cons
- Short repayment terms.
- Requires a personal guarantee.
- The loan cannot be used to cover startup costs.
American Express offers a line of credit for businesses ranging from $2,000 to $250,000. Each time you draw from the line, you have a 6-, 12-, or 18-month repayment period, depending on the terms of your agreement.
Total monthly fees incurred over the loan term range from 3% to 9% for 6-month loans, 6% to 18% for 12-month loans, 9% to 27% for 18-month loans, and 12% to 18% for 24-month loans. In terms of eligibility, your FICO score must be at least 660, and your business must be at least one year old, generating an average monthly revenue of at least $3,000.
Visit American Express
Or read Joywallet's review of American Express.
Best for a super-fast funding process: Rapid Finance
Pros & cons
Pros
- Line of credit starts at $5,000.
- Wide range of loan options available.
- Quick processing and approval.
- Strong customer reviews.
Cons
- Not transparent about the loan details.
- Could be expensive.
As the name implies, Rapid Finance specializes in quick access to credit and loans. Funding may be available literally within hours of your loan approval. The difference between Rapid Finance and other companies is the variety of loan programs available to applicants. The financing options available include:
- Small business loans
- Merchant cash advance
- Lines of credit
- Bridge loans
- SBA loans
- Invoice factoring
- Asset-based loans
- Commercial real estate
The product terms and conditions vary, but the lines of credit start at $5,000.
Visit Rapid Finance
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Term loans vs small business loans
A term loan is a specific type of small business loan designed for particular purposes like purchasing equipment or expanding operations, with a fixed repayment schedule over a set period, and can have either fixed or variable interest rates. In contrast, a small business loan is a broader term that includes various financing options for different needs, such as working capital or inventory. Small business loans can have flexible repayment terms and varying interest rates, and they may be secured or unsecured. Essentially, while all term loans are small business loans, not all small business loans are term loans.
When should you consider a small business loan?
You should consider a small business loan when you need funding for specific goals or to address critical needs, such as starting or expanding your business, managing day-to-day cash flow, or making significant purchases like equipment or property. Loans can also help with consolidating existing debts into a single, more manageable payment or seizing growth opportunities that require immediate capital. It’s essential to evaluate your business’s financial situation and the loan terms to ensure they align with your long-term objectives and repayment capabilities.
FAQs
What is a “term loan” in the small business world of funding?
A term loan is simply a loan with a predetermined repayment period or a defined repayment timeline. Most business loans have 6-, 12-, 18-month repayment options, although some are as lengthy as 10 years.
Is my personal credit score used when I apply for a business loan?
Yes, in most cases, small business loans use the business owner’s personal credit score as a factor in determining creditworthiness. The need for a strong credit score never goes away, and it is true it follows you in the business world. Keeping your credit score as strong as possible will go a long way during the application process and helping you secure the funding you need for your small business.
What documents do I need to apply for a small business loan?
Commonly required documents include a business plan, financial statements, tax returns, bank statements, and details about your business’s legal structure and ownership.
Big Think Capital provides business borrowers with a straightforward and transparent funding platform.
- Business lines of credit from $10k – $1m
- Term as long as 5 years
- Rates as low as 7%
- Decisions as fast as 24 hours
- Quick access to your funds once approved
- Applying won't affect your credit score
The bottom line
Securing funding for new businesses is now simpler, with various options available from online and non-profit lenders. These cater to needs like working capital or larger investments, often through streamlined online applications. Lenders offer a range of options, including competitive interest rates, low fees, flexible credit card choices, and substantial lines of credit. Additionally, qualifying borrowers can benefit from clear repayment terms, often with the possibility of longer terms for ease of management.
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Writer
Sara Coleman is a former corporate gal turned creative entrepreneur. She began writing professionally several years ago and now contributes to multiple websites, blogs, and magazines. She’s also an avid reader and can’t resist a great historical fiction novel. Sara holds a BA in journalism from the University of Georgia and can be found supporting her Bulldogs every chance she has. She resides in Charlotte, North Carolina, with her wonderfully supportive husband and three children. When she’s not ushering her kids to sports and dance lessons, she can be found creating content for her own website, TheProperPen.com.
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