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A quick $5K infusion might be what your small business needs to thrive. These loans are easier to qualify for and offer fast funding. Which one is right for you?
Erica has been writing about small business finance and technology since 2008. She joined Merchant Maverick in 2018 and specializes in researching and reviewing business software, financial products, and other topics to help small businesses manage and grow their operations. Her expertise has been cited in MSN, Reader's Digest, Vox, U.S. News & World Report, and Real Simple. She is a Certified ProAdvisor for QuickBooks Online and QuickBooks Payroll, a graduate of Limestone University, and currently resides in Greenville, South Carolina.
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Erica SeppalaErica has been writing about small business finance and technology since 2008. She joined Merchant Maverick in 2018 and specializes in researching and reviewing business software, financial products, and other topics to help small businesses manage and grow their operations. Her expertise has been cited in MSN, Reader's Digest, Vox, U.S. News & World Report, and Real Simple. She is a Certified ProAdvisor for QuickBooks Online and QuickBooks Payroll, a graduate of Limestone University, and currently resides in Greenville, South Carolina.
Editor & Senior Staff Writer
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Chelsea Krause is a writer who specializes in accounting, payroll, and small business loans. She has been helping small business owners manage their finances since 2016. She is a QuickBooks Certified User and former eCommerce store owner. Her accounting expertise has been quoted in Forbes and her work appears in Startup Nation, Small Business Bonfire, and Women on Business. Chelsea graduated summa cum laude with a BA in English & Creative Writing from George Fox University and studied abroad at the University of Oxford as well.
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Chelsea KrauseChelsea Krause is a writer who specializes in accounting, payroll, and small business loans. She has been helping small business owners manage their finances since 2016. She is a QuickBooks Certified User and former eCommerce store owner. Her accounting expertise has been quoted in Forbes and her work appears in Startup Nation, Small Business Bonfire, and Women on Business. Chelsea graduated summa cum laude with a BA in English & Creative Writing from George Fox University and studied abroad at the University of Oxford as well.
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Our content reflects the editorial opinions of our experts. While our site makes money through referral partnerships, we only partner with companies that meet our standards for quality, as outlined in our independent rating and scoring system.
If your business needs a small cash flow boost, consider taking out a $5K small business loan. These loans are often easier to qualify for and have minimal paperwork requirements, and funds can be in your bank account in as little as one day.
Start your search with our top picks for $5K small business loans. Whether you need a short-term loan to purchase additional inventory or a line of credit for unexpected emergencies, these eight lenders make it easy to get the $5,000 you need for your business fast.
Fast funding, easy application processes, and relaxed borrowing requirements are just a few features you’ll find among the best $5K small business loans. Whether you want an installment loan with a lump sum payment or a flexible line of credit, here are our top picks for $5,000 business loans.
Lending process may be faster by working with a direct lender
Why We Chose Lendio As Best Marketplace For $5K Loans
We like that Lendio makes it easy to find the $5,000 loan your business needs with a single application. Lendio partners with 75+ lenders, so well-qualified borrowers can compare multiple offers to find the best rates and terms. New businesses, bad-credit borrowers, and other applicants can also be connected with loan options they couldn’t get elsewhere.
Lendio connects businesses to numerous financial products for nearly any business purpose. And if you need a larger loan in the future, Lendio can help you secure up to $5 million in funding.
Lendio Services
Lendio is a small business loan marketplace that offers numerous funding options for businesses that need $5,000, such as:
Term loans from $5,000 to $2 million
Business lines of credit from $1,000 to $500,000
Short-term loans from $2,500 to $500,000
SBA loans up to $5 million
Equipment financing from $5,000 to $5 million
Commercial mortgages from $5,000 to $5 million
Startup loans from $5,000 to $10 million
Business acquisition loans from $5,000 to $5 million
Business credit cards up to $150,000
Accounts receivable financing up to $10 million
Lendio’s loan matching service is available at no cost.
Lendio Rates & Fees
Rates and fees vary based on lender, type of funding, and other factors including credit score. Lendio’s lending partners offer long-term, low-interest options as well as short-term loans with higher rates and fees.
Lendio Eligibility Requirements
Lendio’s lending partners have their own sets of eligibility requirements. Established businesses with high credit scores and revenues will be eligible for more offers with better rates and terms.
Choose Lendio If...
You want to easily compare rates and terms with a single application
You want to explore different types of funding options you’re eligible to receive
You have bad credit, own a new business, or face other challenges that make it hard to find funding
Why We Chose Fora Financial For Best $5K Loans With Great Customer Service
Fora Financial makes our list because of its excellent customer service. Numerous customers have posted positive reviews about the company’s customer support, noting that reps are honest and transparent without being too pushy.
We also like that because of its relaxed borrowing requirements, Fora Financial provides funding opportunities for newer businesses and borrowers with poor credit scores. The application process is easy, and funds are disbursed quickly for businesses that need access to fast cash.
Fora Financial Services
Fora Financial provides businesses with short-term loans and merchant cash advances from $5,000 – $1.5 million.
Fora Financial Rates & Fees
Fora Financial charges a one-time factor rate for its loan products. Factor rates range from 10% – 30%. Expect to pay an origination fee of 1% – 4%.
Repayments are made daily or weekly. While MCAs don’t have set term rates, loans are generally repaid within 4 – 18 months.
Fora Financial Eligibility Requirements
To be eligible for funding through Fora Financial, you must meet these basic requirements:
Minimum personal credit score of 570
At least $20,000/month in revenue
At least 6 months in business
No open bankruptcies
Businesses in certain industries (such as adult entertainment and gambling) are ineligible to borrow from Fora Financial.
Choose Fora Financial If...
You’re a newer business that has been in operation for at least 6 months
Credit challenges prevent you from getting funded elsewhere
Why We Chose LoanBuilder For Best $5K Loans For New Businesses
LoanBuilder is a great option for newer businesses that may not qualify for funding elsewhere. While many small business lenders require 2+ years in business, LoanBuilder provides short-term loans to businesses that have been in operation for as little as 9 months.
We also like that LoanBuilder funds loans quickly, with some businesses receiving funds the next business day after the loan is approved.
LoanBuilder Services
LoanBuilder offers short-term business loans from $5,000 – $150,000. New borrowers will only qualify for a maximum of $100,000. Term lengths range from 17 – 52 weeks, and payments are made weekly.
LoanBuilder Rates & Fees
Borrowers that receive a LoanBuilder loan will pay a one-time fee. Unfortunately, LoanBuilder no longer discloses its fees. In the past, borrowing fees ranged from 2.9% – 18.72% of the borrowing amount. There are no additional fees or hidden costs.
LoanBuilder Eligibility Requirements
To be eligible for a LoanBuilder loan, borrowers must meet these minimum requirements:
U.S.-based business
At least $33,300 in revenue
At least 9 months in business
No active bankruptcies
Previously, LoanBuilder listed a credit score requirement of at least 620. However, this is no longer listed as a requirement.
Some industries are ineligible for LoanBuilder loans, including attorneys, credit bureaus, financial services, and nonprofit organizations.
Additionally, borrowers in North Dakota and South Dakota are ineligible to receive a LoanBuilder loan.
The speed of funding its term loans and lines of credit is what puts OnDeck on this list. In some cases, you can even receive funding the same day you’re approved.
LoanDeck has borrowing requirements that are fairly easy to meet, making its financial products an ideal choice for businesses that don’t qualify for funding elsewhere.
OnDeck Services
OnDeck provides two financial products:
Term loans from $5,000 to $250,000
Lines of credit from $6,000 to $100,000
OnDeck Rates & Fees
OnDeck’s rates for its term loans range from 29.9% to 97.3%. The average APR for an OnDeck term loan is 55.8%. Repayment terms are up to 24 months. Origination fees may apply.
OnDeck’s lines of credits have APRs from 29.9% to 65.9%. The average APR for an OnDeck line of credit is 52.6%. Repayment terms are up to 12 months. Borrowers may be required to pay a $20/monthmaintenance fee.
OnDeck Eligibility Requirements
To qualify for OnDeck funding, you need:
Business bank account
Minimum personal credit score of 625
At least 12 months in business
At least $100,000/year in revenue
OnDeck funding is not available to borrowers in North Dakota. Businesses in certain industries (such as car dealerships and MLMs) are ineligible for funding.
Choose OnDeck If...
You need fast (potentially same-day) funding
You need a loan or line of credit and don’t meet the requirements of traditional lenders
Why We Chose Credibly For Best $5K Bad Credit Loans
We like that Credibly has a variety of financial products suited for business owners with bad credit. Credibly provides small business funding to borrowers with credit scores as low as 500.
In addition to its relaxed borrowing requirements, Credibly stands out for its great customer service, fast and easy application process, and excellent public reputation.
Credibly Services
Credibly provides several small business funding options, including:
Short-term working capital loans from $5,000 to $600,000
Merchant cash advances up to $600,000
Long-term installment loans up to $250,000
Secured & unsecured lines of credit
SBA loans
Credibly Rates & Fees
Credibly doesn’t publicly disclose much about its rates and fees. Some of its products use a factor rate starting at 1.11. Additional fees, including underwriting fees and origination fees, may apply.
Credibly Eligibility Requirements
Specific borrower requirements vary based on the type of funding you’re seeking. Basic requirements for Credibly funding include:
At least 6 months in business
Minimum personal credit score of 500
Business revenue of at least $15,000/month
Choose Credibly If...
You have bad credit and don’t qualify for traditional funding
You’re a newer business that’s been in operations for at least 6 months
Why We Chose Accion For Best $5K Loans For Underserved Borrowers
Accion Opportunity Fund makes this list because this nonprofit lender provides small business loans to underserved borrowers, including women, minorities, veterans, and foreign-born business owners.
In addition to providing funding and resources to underserved borrowers, Accion has relaxed borrower requirements. We like that newer businesses and borrowers with low credit scores may be eligible to receive funding through this lender.
Accion Opportunity Fund Services
Accion Opportunity Fund provides eligible borrowers with installment loans from $5,000 – $250,000. Repayment terms range from 12 – 60 months.
Accion Opportunity Fund Rates & Fees
Interest rates range from 8.49% – 24.99%. An origination fee of 3% – 5% is charged.
Accion Opportunity Fund Eligibility Requirements
To qualify for an Accion loan, you must meet these basic requirements:
At least 12 months in business
At least $50,000/year in revenue
There are no minimum credit score requirements. Accion loans aren’t available in all states, and some states have higher minimum borrowing amounts.
Choose Accion If...
You’re an underserved borrower that has trouble qualifying for loans elsewhere
You have credit challenges that prevent you from receiving a loan from traditional lenders
We love that Fundbox’s application process is quick and easy, and borrowing requirements aren’t too difficult to meet. This is especially true for new businesses, as Fundbox only requires 3 months in business.
Businesses that need flexible funding won’t be disappointed with Fundbox’s revolving lines of credit. Borrowers can receive funds as quickly as the next business day after approval and can make multiple draws up to their credit limits.
Fundbox Services
Fundbox has small business lines of credit from $100 – $150,000. Payment terms are set at 12 or 24 weeks.
Fundbox Rates & Fees
Fundbox charges borrowing fees starting at 4.66%+ (12-week terms) or 8.99%+ (24-week terms).
Fundbox Eligibility Requirements
To qualify for a Fundbox line of credit, you must meet these basic requirements:
U.S.-based businesses
Minimum personal credit score of 600
At least $30,000/year in revenue
At least 3 months in business
Business checking account
Choose Fundbox If...
A flexible line of credit to use when needed would better suit your needs
Why We Chose Kiva U.S. For Best $5K Crowdfunded Loans
We like that Kiva U.S. is unique from other lenders by offering crowdfunded small business loans with no interest or additional fees. There are also no minimum credit score, time in business, or revenue requirements.
The application process takes some work, and it can take a while to receive your funds after launching your campaign. However, receiving a no-interest loan, which is virtually unheard of, may be well worth the effort for small businesses in need of smaller loans.
Kiva U.S. Services
Kiva U.S. provides small businesses with no-interest installment loans up to $15,000. Repayment terms range from 36 months.
Kiva U.S. Rates & Fees
Kiva’s crowdfunded loans have 0% interest and no fees.
Kiva U.S. Eligibility Requirements
Unlike other small business loans, Kiva U.S. does not have minimum credit score, time in business, or revenue requirements. To qualify, eligible business owners must:
Be at least 18 years old
Have a U.S.-based business
Use the funding for business purposes
Not have a business engaged in multi-level marketing, direct sales, financial investing, or illegal activities
Not have liens, foreclosures, or bankruptcies
Choose Kiva U.S. If...
You’re ready to potentially wait 1-3 months and put in some work for no-interest funding
You operate a community-oriented business and need a smaller cash infusion
Business Loan & Funding Products Review Methodology
We spend hours researching and evaluating each business loan and funding product that we review at Merchant Maverick, placing special emphasis on key characteristics to generate our ratings.
Weighted Rating Breakdown
Rates & Fees 20%
Services 20%
Eligibility Requirements 20%
Application 15%
Sales & Advertising Transparency 10%
Customer Service 10%
User Reviews 5%
When rating lenders and funding providers, we use a 31-point rubric that looks at rates and fees, services, eligibility requirements, application, sales and advertising transparency, customer service, and user reviews. We weigh each section differently to calculate the total star rating. This rubric is applied to traditional term loans, as well as short-term loans, start-up loans, lines of credit, online lending products, merchant cash advances, and equipment financing products.
Rates & Fees: 20% of the total star rating
Services: 20% of the total star rating
Eligibility Requirements: 20% of the total star rating
Application: 15% of the total star rating
Sales & Advertising Transparency: 10% of the total star rating
Customer Support: 5% of the total star rating
User Reviews: 5% of the total star rating
Each section is further broken down into granular, weighted subsections, in which we examine specific attributes like terms lengths, conditions of repayment, credit score and revenue requirements, ease of application, length of time to funding, the ethics involved in promoting the lending product, customer support, and the overall reputation of the lender or funding provider.
Can I Get A $5K Small Business Loan With Bad Credit?
It’s possible for small business owners with bad credit to qualify for a $5,000 loan. Many of the lenders on our list have very low personal credit score requirements, provided you meet other requirements such as a minimum time in business and steady revenue.
Short-term loans, business credit cards, and crowdfunding are top options for borrowers with credit challenges.
To qualify for lower rates, longer terms, and higher borrowing amounts, you’ll need to raise your personal credit score. Build your personal credit score by:
Reviewing your credit report and disputing any errors
Using a secured business credit card responsibly
Paying all bills on time as agreed
Reducing your credit utilization
The Bottom Line On $5,000 Small Business Loans
Finding a $5,000 loan for your business shouldn’t be too difficult. However, you should go into the process knowing that smaller loans come with shorter repayment terms and may also be accompanied by high fees and interest rates.
Calculate the affordability of the loan to ensure that taking out a loan is a smart financial move. If this is your first time applying for a small business loan, educate yourself before you start submitting applications to lenders. Finally, be sure to shop around to ensure you get the most affordable financing products that work best for your business.
Erica has been writing about small business finance and technology since 2008. She joined Merchant Maverick in 2018 and specializes in researching and reviewing business software, financial products, and other topics to help small businesses manage and grow their operations. Her expertise has been cited in MSN, Reader's Digest, Vox, U.S. News & World Report, and Real Simple. She is a Certified ProAdvisor for QuickBooks Online and QuickBooks Payroll, a graduate of Limestone University, and currently resides in Greenville, South Carolina.
View Erica Seppala's professional experience on LinkedIn.
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The vendors that appear on this list were chosen by subject matter experts on the basis of product quality, wide usage and availability, and positive reputation.
Merchant Maverick’s ratings are editorial in nature, and are not aggregated from user reviews. Each staff reviewer at Merchant Maverick is a subject matter expert with experience researching, testing, and evaluating small business software and services. The rating of this company or service is based on the author’s expert opinion and analysis of the product, and assessed and seconded by another subject matter expert on staff before publication. Merchant Maverick’s ratings are not influenced by affiliate partnerships.
Our unbiased reviews and content are supported in part by affiliate partnerships, and we adhere to strict guidelines to preserve editorial integrity. The editorial content on this page is not provided by any of the companies mentioned and has not been reviewed, approved or otherwise endorsed by any of these entities. Opinions expressed here are author’s alone.
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