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Best Small Business Loans: Top Picks For 2022

Take a look at our picks for the best small business loans for cash flow issues, business expansion, debt consolidation, bank financing, and other business financing needs.

    Erica Seppala
  • UPDATED

Advertiser Disclosure: Our unbiased reviews and content are supported in part by affiliate partnerships, and we adhere to strict guidelines to preserve editorial integrity.

A small business loan is an easy way to increase your business capital. But with so many loan options on the market, how do you choose what’s best for your business?

Start your search with these top lenders. Whether you’re purchasing new equipment, expanding your business, or funding an emergency expense, there’s an option out there that’s right for you. Keep reading to learn more about our picks for the best small business loans of 2022.

Learn More About Our Top Picks

CompanySummaryNext StepsSummary

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Best for fast funding.
Best for fast funding.

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Best loan marketplace.
Best loan marketplace.

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Best for equipment financing.
Best for equipment financing.

Apply Now

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Best for SBA loans.
Best for SBA loans.

Apply Now

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Best for invoice factoring.
Best for invoice factoring.

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Other Featured Options:

Read more below to learn why we chose these options.

10 Best Small Business Loans For 2022

These are the best small business loans for 2022, including flexible lines of credit, low-interest loan options, and loans that give you access to fast funding. No matter what you need funding for, check out these great options from lenders, including OnDeck, Lendio, BlueVine, SmartBiz, and more.

1. OnDeck

OnDeck



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Best for fast funding. 

Pros

  • Multiple types of financing are available
  • The application process is quick and easy
  • Funds are disbursed quickly

Cons

  • Rates can be expensive
  • Not available to businesses in some industries

OnDeck offers two financing solutions to help small business owners get a handle on operating costs: short-term loans and lines of credit. The application process is fast and easy, and once you accept your loan, you can receive funds as quickly as the same business day.

OnDeck doesn’t charge interest on its term loans. Instead, your repayment amount is a fixed rate. That means your repayment amount only gets calculated once. Borrowing amounts of up to $250,000 are available to qualified borrowers. OnDeck also offers revolving lines of credit of up to $100,000 and term lengths of 12 months. Unlike OnDeck’s term loans, the company’s lines of credit do accrue interest, so you can save money by repaying the money early. There is no penalty for early repayment.

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2. Lendio

Lendio



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Best loan marketplace. 

Pros

  • Multiple types of financing are available
  • High borrowing amounts
  • Low credit score requirements (for some products)

Cons

  • The application process can be slow
  • Funds can take a while to disburse
  • Rates can be expensive

Lendio is a loan marketplace that helps connect you to the best loan for your business. With one application, you can receive loan offers from 75+ loan originators in Lendio’s network within 72 hours. Then, you can compare the loan offers you prequalify for and select the one that best fits your business circumstances. What’s more, Lendio’s business loan marketplace is completely free to use.

Lendio offers a variety of loan options, including business lines of credit, SBA loans, short-term loans, business term loans, merchant cash advances, and equipment financing. Furthermore, Lendio’s extensive lender network includes some lenders that are willing to work with would-be borrowers who have less-than-stellar credit (Lendio recommends a credit score of at least 550 for applicants).

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3. Fundera

Fundera by NerdWallet



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Best for equipment financing. 

Pros

  • Multiple types of financing are available
  • Long-term financing options available
  • The application process is fast and easy

Cons

  • Rates can be expensive
  • Some additional fees are charged

Fundera isn’t a direct lender but instead offers a loan matchmaking service. Simply input your information, and Fundera helps you find and compare lender offers. Fundera places value on quality lenders, so you don’t have to worry about being paired with a shady lender. Fundera also has excellent customer service, a variety of financing products, and even options for new businesses or credit-challenged borrowers.

If you need equipment, Fundera’s lending partners offer equipment financing. You can receive up to 100% of the price of your equipment with repayment terms of five to six years. Interest rates generally range from 4% to 40%. In addition to equipment financing, you can receive other funding through Fundera, including term loans, invoice financing, SBA loans, merchant cash advances, startup loans, and more.

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4. SmartBiz

SmartBiz



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Best for SBA loans. 

Pros

  • High borrowing amounts
  • Rates tend to be inexpensive
  • Long-term financing options available

Cons

  • Borrower qualifications might be hard to meet
  • Funds can take a while to disburse

SmartBiz doesn’t originate loans. Instead, it works with a network of bank lenders that provide SBA loans. SmartBiz requires two years in business to qualify, so this option isn’t for startups. However, if you meet the requirements and are willing to navigate the lengthy application and funding process, you’ll be rewarded with a low-cost, long-term small business loan.

SmartBiz provides three types of SBA loans: debt refinancing loans, working capital loans, and commercial real estate loans. The working capital and debt refinancing SBA loans offered through SmartBiz offer up to $350,000 with a term length of 10 years and an APR of around 10%. SmartBiz’s commercial real estate loans are offered for up to $5 million with term lengths of 25 years.

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5. BlueVine

BlueVine



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Best for invoice factoring. 

Pros

  • Low credit score requirements
  • No long term contract required
  • Funds are disbursed quickly

Cons

  • Rates can be expensive
  • Repayments are required quickly

Through a partnership with FundThrough, BlueVine offers invoice factoring and financing, so you can use your unpaid invoices to boost cash flow. You can receive up to $10 million through invoice factoring or up to $15,000 through invoice financing. Just connect your accounting software and business bank account to qualify — even if you have a less-than-perfect credit history.

And if you don’t have unpaid invoices? BlueVine can still provide the funding you need through its lines of credit. You may qualify for as much as $250,000 with interest rates starting at 4.8%. And it’s easy to qualify, as BlueVine requires a 600+ credit score, $10,000+ monthly revenue, and at least six months in business.

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6. Fundbox

Fundbox



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Best loans for bad credit. 

Pros

  • Low credit score requirements
  • Two types of financing are available (term loans and lines of credit)
  • Funds are disbursed quickly

Cons

  • Rates can be expensive
  • No long-term financing options are available

Fundbox is a lender with low borrower requirements, making it an excellent place to seek funding for businesses (or even freelancers) with as little as six months in operation (although, ideally, a full year in business). Fundbox also lends to business owners with credit scores as low as 600. You’ll be hard-pressed to find another business lender with such relaxed requirements.

Fundbox evaluates your bank account activity when you apply for a Fundbox Credit revolving line of credit. You’ll need to have been using a compatible bank account for at least three months before applying. The borrowing fee begins at 4.66%, term lengths are 12 or 24 weeks, borrowing amounts run from $1K to $150K, and there is no prepayment penalty. Fundbox has also launched a term loan program in beta that offers a lump sum payment with longer repayment terms. This product may not be available to all customers.

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7. Wells Fargo

Wells Fargo Business Loans



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Best for low-interest loans. 

Pros

  • Multiple types of financing are available
  • Rates tend to be inexpensive
  • Long-term financing options available

Cons

  • Borrower qualifications might be hard to meet
  • Funds can take a while to disburse

If you decide to seek a loan from a traditional bank, the business loans offered by Wells Fargo merit consideration. The banking giant offers a wide array of financing products for businesses, including lines of credit, SBA loans, invoice factoring, equipment financing, and more. Wells Fargo makes borrowing easier with an online application process.

Wells Fargo’s borrower requirements for business loans are generally pretty steep. Your business must have a two-year record of profitability and at least $1.50 in cash flow for every $1 borrowed. You must also have a personal credit score of at least 640. However, if you do meet the requirements, you’ll find that Wells Fargo’s rates are extremely competitive.

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8. LoanBuilder

LoanBuilder



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Best loan for new businesses. 

Pros

  • Borrower qualifications are lower than what banks offer
  • Low credit score requirements
  • No extra fees

Cons

  • No available long-term financing options
  • A blanket lien is required

Small business lender LoanBuilder, which PayPal acquired in 2017, specializes in short-term business loans that carry fixed fees instead of interest. For new businesses just starting, LoanBuilder’s advantage is that the lender only requires nine months of business time. Most business loan vendors require 12 months or more of business history. You’ll also need revenue of $42,000+ a year and a personal credit score of 620 or above.

Borrowing amounts run from $5K to $500K. Term lengths range from 13 to 52 weeks, and the borrowing fee is a one-time fee of 2.9%-18.72% of the borrowing amount.

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9. Accion

Accion



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Best for startups and underserved borrowers. 

Pros

  • Borrower qualifications are lower than what banks offer
  • Financing is available to qualified startups
  • Monthly repayments

Cons

  • Rates can be expensive
  • Some additional fees are charged

Accion is a nonprofit lender that looks beyond just credit scores. Accion is startup-friendly and also provides funding to underserved borrowers, including women, minorities, and immigrants.

Through Accion, you can receive up to $100,000 with rates starting at just 5.99%. In addition to offering funding, Accion can also connect you to small business coaching, educational resources, and support networks to help your business succeed.

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10. Kiva U.S.

Kiva U.S.



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Best for crowdfunding. 

Pros

  • No credit score requirements
  • Financing is available to startups
  • No interest rates

Cons

  • Low borrowing limits
  • Funds can take a while to disburse

It’s not every day that you find small business loans with 0% interest rates, but that’s exactly what you can get with Kiva U.S. This crowdfunding platform helps small business owners get funded up to $15,000 with 0% interest. Even more surprising is that there are no credit score requirements. Instead, you invite friends and family to lend to you through the platform to prove your creditworthiness.

After the 15-day private funding period, you enter a 30-day public funding period to connect to over 1.6 million lenders. Following this, you can receive funds within five to seven days and have 36 months to repay your loan. Note that to qualify for the maximum loan amount, you’ll need to have a strong online presence and be in business for at least three years. Otherwise, you may only qualify for a smaller loan.

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Methodology: How We Chose Our Top Picks

When reviewing business financing products, Merchant Maverick gathers and examines pertinent data points on each lender (interest rates, term length, fees, borrower requirements, customer reviews, etc.). We compare the lender to other similarly situated companies in the industry and assign them a score based on our research.

For this list, we’ve pinpointed some of the primary motivations for seeking business financing, identified the lenders that best fulfill those motivations based on the data we’ve collected, and presented them to you! Of course, we encourage you to compare business lenders to find the product that best suits your business needs, but we hope this list provides you with a well-substantiated starting point in your search.

Understanding Small Business Loans

How To Choose The Best Business Loan

Not all business loans are created equal, and even loans you’ve used in the past may not be the most suitable for your current situation. To choose the best business loans, keep the following factors in mind:

  • Borrowing amount
  • Purpose of the loan
  • Repayment terms (monthly, weekly, etc.)
  • Term length
  • The total cost of borrowing (interest, fees, and other costs)
  • Personal credit score and credit history
  • Time in business
  • Collateral requirements

Armed with an understanding of your business, credit history, and what loan options are on the market, you can make a more informed decision before committing to a loan and signing on the dotted line.

Types Of Business Loans

Type Of Business Funding What It Is
SBA 7(a) Loan Backed by the SBA, low rates, repayment terms up to 25 years
Business Term Loan Longer repayment terms, typically higher borrowing amounts, lower interest rates
Business Line Of Credit Acts as an emergency fund; repay daily, weekly, or monthly; revolving lines replenish funds as they’re repaid
Short-Term Business Loan Repayment terms are typically 18 months or less, flat fees, typically repaid daily or weekly
Equipment Financing Used to purchase business assets, loans and leases available, typically repaid monthly over 2-7 years
Invoice Factoring Sell unpaid invoices, low borrower requirements
Merchant Cash Advance A short-term solution, typically higher rates, low borrower requirements
Business Credit Card Revolving credit, good for emergency expenses, may offer rewards or cash back
Crowdfunding It may have low borrower requirements, may be ideal for startups
Microloan Typically $50,000 or less, startup-friendly, lower borrower requirements than traditional bank loans
Commercial Real Estate Loan High borrowing amounts, long repayment terms, used to purchase commercial property

Small Business Loan FAQs

What is the easiest small business loan to get?

Typically, short-term loans and business lines of credit are the easiest types of small business loans to receive. Many lenders offer easy applications, fast or even same-day business loans, and more relaxed borrower requirements. However, be aware that the total cost of borrowing may be much higher and repayment terms much shorter with these types of loans.

Is a small business loan hard to get?

With so many alternative lenders, it’s possible for most small businesses to qualify for a loan. Be aware, however, that loans with better terms and interest rates are more difficult to qualify for, and the application and funding process may be much lengthier.

Are online lenders safe?

Online lenders are safe provided you work with a reputable company, like the lenders on this list. Make sure you do your research on any lender you’re considering, including checking out user reviews, looking for contact information, and checking with the Better Business Bureau.

What credit score do you need for a small business loan?

Credit score requirements for small business loans vary widely based on the type of loan you’re looking to receive (i.e., SBA and bank loans require a higher credit score of 650+, whereas short-term loans may only require a credit score of 600 or below). Borrowers with less-than-perfect credit may be eligible for business loans. However, the borrowing amount will typically be lower, interest rates will be higher, and repayment terms may not be as favorable as they are with a more creditworthy borrower.

In Summary: 10 Best Small Business Loans For 2022

  1. OnDeck: Best for fast funding.
  2. Lendio: Best loan marketplace.
  3. Fundera by NerdWallet: Best for equipment financing.
  4. SmartBiz: Best for SBA loans.
  5. BlueVine: Best for invoice factoring.
  6. Fundbox: Best loans for bad credit.
  7. Wells Fargo Business Loans: Best for low-interest loans.
  8. LoanBuilder: Best loan for new businesses.
  9. Accion: Best for startups & underserved borrowers.
  10. Kiva U.S.: Best for crowdfunding.
Erica Seppala

Erica Seppala

Expert Analyst & Reviewer at Merchant Maverick
An expert in accounting, finance, and point of sale, Erica has been researching and writing about all things small-business since 2018. Erica's insights into personal and business finance have been cited in numerous publications, including MSN, Real Simple, and Reader's Digest. She is a graduate of Limestone College.
Erica Seppala
View Erica Seppala's professional experience on LinkedIn.

Sources

5 Comments

Responses are not provided or commissioned by the vendor or bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the vendor or bank advertiser. It is not the vendor or bank advertiser's responsibility to ensure all posts and/or questions are answered.

    okereke sunday

    I need a loan so that I can start a business of motor spare parts

      This comment refers to an earlier version of this post and may be outdated.

      Jessica Dinsmore

      Thanks for stopping by! We hope you find some helpful resources while you are here–this post on starting and funding an automotive business might have some relevant recommendations for you. Good luck to you!

        This comment refers to an earlier version of this post and may be outdated.

        Abdelkader Bokstrom

        Excellent raisonnement et un vivier de conseils et bien évidemment des recommandations positives pour les businessmen .Bravo bonne continuation

        Excellent reasoning and a pool of advice and of course positive recommendations for businessmen.

          This comment refers to an earlier version of this post and may be outdated.

          Gary J Buzzerio

          I had my 2019 taxes done by h n r block and I’m a 1099 person. I was told I can get a ppp loan but I really don’t know how to get it done. Wondering if someone can help me get One with my 2019 taxes and my 1099. My number is 910 479 8830. Thank you. Gary Buzzerio

            This comment refers to an earlier version of this post and may be outdated.

            Jessica Dinsmore

            Hi Gary,

            We have a post on PPP loans for self-employed that can help you with navigating the application process. And 2019 taxes are sufficient for the application. I hope that helps! Best of luck.

              This comment refers to an earlier version of this post and may be outdated.

            Comments are closed.

            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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