Best $5K Small Business Loans

Total Rating	4.8
Rates & Fees5.0 Pricing 5.0 Affordability 5.0
Services5.0
Eligibility Requirements4.9
Application4.5
Sales & Advertising Transparency4.4 Sales Practices 4.0 Web Presence 5.0
Customer Service4.9
User Reviews4.9

Pros

Multiple types of financing available
The application process is easy
Applicants can quickly be prequalified

Cons

Rates can be expensive
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. However, Lendio does recommend that borrowers have a personal credit score of 550+. 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

Get Started With Lendio

LoanBuilder: Best $5K Loans For New Businesses

LoanBuilder

Get Started With LoanBuilder

Total Rating	3.5
Rates & Fees4.1 Pricing 4.4 Affordability 3.8
Services2.9
Eligibility Requirements3.4
Application3.8
Sales & Advertising Transparency3.8 Sales Practices 4.0 Web Presence 3.5
Customer Service2.8
User Reviews4.1

Pros

Borrower qualifications are lower than banks
The application process is fast and easy
No extra fees
Funds get disbursed quickly

Cons

No discounts for repaying early
A personal guarantee is required
Nontransparent fees and borrowing requirements

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 nine 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 to $150,000. New borrowers will only qualify for a maximum of $100,000. Term lengths range from 17 to 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% to 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/year in revenue
At least nine 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.

There are some industries that are ineligible to receive LoanBuilder loans, including attorneys, credit bureaus, financial services, and nonprofit organizations.

Additionally, borrowers in the following states are ineligible to receive a LoanBuilder loan:

Hawaii
Nevada
North Carolina
North Dakota
South Dakota

Choose LoanBuilder If...

You’ve been in business for less than one year
You’d prefer a loan with a simple one-time fee
You want a short-term loan that’s funded quickly

Accion: Best $5K Loans For Underserved Borrowers

Accion

Total Rating	3.8
Rates & Fees5.0 Pricing 5.0 Affordability 5.0
Services2.1
Eligibility Requirements4.1
Application3.5
Sales & Advertising Transparency4.8 Sales Practices 5.0 Web Presence 4.5
Customer Service3.9
User Reviews3.2

Pros

Borrower qualifications are lower than banks
The application process is fast and easy
Low credit score requirements

Cons

Some additional fees are charged
Rates can be expensive

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 to $250,000. Repayment terms range from 12 to 60 months.

Accion Opportunity Fund Rates & Fees

Interest rates range from 8.49% to 24.99%. An origination fee of 3% to 5% are 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

Get Started With Accion

Credibly: Best $5K Loans For Bad Credit

Credibly

Get Started With Credibly

Total Rating	3.6
Rates & Fees3.1 Pricing 3.7 Affordability 2.4
Services3.7
Eligibility Requirements3.3
Application4.0
Sales & Advertising Transparency3.6 Sales Practices 3.0 Web Presence 4.5
Customer Service4.3
User Reviews4.0

Pros

Low credit score requirements
The application process is fast and easy

Cons

Some additional fees are charged
Rates can be expensive

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 $400,000
Merchant cash advances up to $400,000
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 six months in business
Minimum personal credit score of 500

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 6+ months

Fundbox: Best $5K Lines Of Credit For Startups

Fundbox

Total Rating	3.8
Rates & Fees3.1 Pricing 2.3 Affordability 3.8
Services3.6
Eligibility Requirements4.5
Application4.8
Sales & Advertising Transparency3.8 Sales Practices 4.0 Web Presence 3.5
Customer Service3.0
User Reviews4.4

Pros

Funds are disbursed quickly
Discounts for repaying early
Few extra fees

Cons

Rates can be expensive
Repayments are required frequently

Why We Chose Fundbox For Best $5K Line Of Credit

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 6+ 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 $1,000 to $150,000. Payment terms are set at 12 or 24 weeks.

Fundbox Rates & Fees

Fundbox charges borrowing fees starting at 4.66% for 12-week terms and 8.99% for 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 $100,000/year in revenue
At least 6 months in business
Business checking account

Choose Fundbox If...

A flexible line of credit to use when needed would better suit your needs
You need fast access to funding

Get Started With Fundbox

Kiva U.S.: Best $5K Crowdfunded Loans

Kiva U.S.

Get Started With Kiva U.S.

Pros

No interest
No credit score requirements
No additional fees

Cons

Lengthy application process
Funds can take a while to disburse

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 six months to three years.

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

Fora Financial: Best $5K Loans With Excellent Customer Support

Fora Financial

Get Started With Fora Financial

Total Rating	3.7
Rates & Fees3.2 Pricing 3.0 Affordability 3.4
Services3.5
Eligibility Requirements4.6
Application4.3
Sales & Advertising Transparency3.2 Sales Practices 3.0 Web Presence 3.5
Customer Service2.8
User Reviews3.9

Pros

Low credit score requirements
The application process is fast and easy
Funds are disbursed quickly

Cons

Rates can be expensive
Repayments are required frequently

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 to $1.5 million.

Fora Financial Rates & Fees

Fora Financial charges a one-time factor rate for its loan products. Factor rates range from 1.1 to 1.4. Expect to pay an origination fee of 1% to 4%.

Repayments are made daily or weekly. While MCAs don’t have set term rates, loans are generally repaid within 4 to 15 months.

Fora Financial Eligibility Requirements

To be eligible for funding through Fora Financial, you must meet these basic requirements:

Minimum personal credit score of 500
At least $15,000 in monthly sales
At least six 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 6+ months
Credit challenges prevent you from getting funded elsewhere

OnDeck: Best For Fast $5K Loans

OnDeck

Total Rating	3.9
Rates & Fees4.6 Pricing 5.0 Affordability 4.2
Services2.9
Eligibility Requirements3.8
Application4.5
Sales & Advertising Transparency3.8 Sales Practices 4.0 Web Presence 3.5
Customer Service4.1
User Reviews4.0

Pros

Borrower qualifications are lower than banks
The application process is fast and easy
Funds are disbursed quickly

Cons

Rates can be expensive
Financing isn’t available in some states

Why We Chose OnDeck For Fast $5K Loans

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/month maintenance 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

Get Started With OnDeck

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.

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.

Read more about how we rate small business lenders.

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:

Obtaining your free credit score to find out where you stand
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.

Bio
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Erica Seppala

Editor & Senior Staff Writer at Merchant Maverick

Erica began writing on small business topics in 2008. She joined Merchant Maverick in 2018 and focuses on loans, accounting, and POS. She is a Certified ProAdvisor for QuickBooks Online and QuickBooks Payroll. She has been cited in MSN, Reader's Digest, Vox, U.S. News & World Report, and Real Simple. She is a graduate of Limestone University and resides in Greenville, South Carolina.

View Erica Seppala's professional experience on LinkedIn.

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1. Lendio

❮ ❯

Term loans, short-term loans, MCAs, LOCs, equipment financing, invoice financing
FICO: No minimum
APR: Varies by lender

2. LoanBuilder

❮ ❯

Short-term loans
FICO: Undisclosed
Fees: 2.9%+ of borrowing amount

3. Accion

❮ ❯

Term loans
FICO: No minimum
Interest Rate: 8.49%+

4. Credibly

❮ ❯

Term loans, short-term loans, MCAs, LOCs, equipment financing, invoice factoring
FICO: 500+
APR: Varies by product

5. Fundbox

❮ ❯

Lines of credit
FICO: 600+
Fees: 4.66%+ of borrowing amount

6. Kiva U.S.

❮ ❯

Crowdfunded term loans
FICO: No minimum
APR: 0%

7. Fora Financial

❮ ❯

Short-term loans, MCAs
FICO: 500+
Borrowing Fee: 10%+ of borrowing amount

8. OnDeck

❮ ❯

Term loans, lines of credit
FICO: 625+
APR: 29.9%+