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The 11 Best Small Business Loans

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

    Erica Seppala
  • Last updated onUpdated

  • Chelsea Krause
  • REVIEWED BY

    Chelsea Krause

    Lead Staff Writer

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.

A small business loan is an easy way to increase your business capital, but how do you choose the right funding option? Start your search with our picks for the best small business loans.

Whether you’re purchasing new equipment, expanding your business, or covering an emergency expense, there’s small business funding out there for any situation. Keep reading to learn more about our picks for the best small business loans.

Learn More About Our Top Picks

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  • Term loans, STLs, LOCs, & MCAs
  • FICO: No minimum
  • APR: Varies by lender
  • Term loans, STLs, LOCs, & MCAs
  • FICO: No minimum
  • APR: Varies by lender

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

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

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  • SBA loans, term loans, LOCs, & ERC refunds
  • FICO: 650+ for SBA loans
  • APR: 9.99%+
  • SBA loans, term loans, LOCs, & ERC refunds
  • FICO: 650+ for SBA loans
  • APR: 9.99%+

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  • Term loans, STLs, LOCs, SBA loans, invoice financing, equipment financing, MCAs
  • FICO: Varies by lender
  • APR: Varies by lender
  • Term loans, STLs, LOCs, SBA loans, invoice financing, equipment financing, MCAs
  • FICO: Varies by lender
  • APR: Varies by lender

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  • Installment loans, short-term loans, equipment loans, SBA loans, MCAs, LOCs, & invoice financing
  • FICO: No minimum
  • APR: Varies by lender
  • Installment loans, short-term loans, equipment loans, SBA loans, MCAs, LOCs, & invoice financing
  • FICO: No minimum
  • APR: Varies by lender

Apply Now

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  • Lines of credit
  • FICO: 600+
  • APR: 4.66%+
  • Lines of credit
  • FICO: 600+
  • APR: 4.66%+

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  • LOCs, SBA loans
  • FICO: 640+
  • APR: Prime + 1.75%+
  • LOCs, SBA loans
  • FICO: 640+
  • APR: Prime + 1.75%+

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  • Short-term loans
  • FICO: Undisclosed
  • Fees: Undisclosed
  • Short-term loans
  • FICO: Undisclosed
  • Fees: Undisclosed

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  • Installment loans
  • FICO: No minimum
  • APR: 8.49%+
  • Installment loans
  • FICO: No minimum
  • APR: 8.49%+

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  • Crowdfunded microloans
  • FICO: No minimum
  • APR: 0%
  • Crowdfunded microloans
  • FICO: No minimum
  • APR: 0%

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Table of Contents

The Best Loans For Small Businesses

The best small business loans should have competitive rates, good repayment terms, and transparent terms and fees. From flexible lines of credit and low-interest loans to fast funding options, here are the best small business lenders.

How The Best Small Business Loans Compare

Type Of FundingMax. Borrowing AmountAPRTerm Lengths
BusinessLoans.comShort-term loans, long-term loans, LOCs, MCAs$3 millionVaries by lender/productVaries by lender/product
LendioTerm loans, short-term loans, LOCs, MCAs, equipment financing, SBA loansVaries by lender/productVaries by lender/productVaries by lender/product
OnDeckTerm loans, LOCs$250,000Starts at 29.9%Up to 24 months
SmartBizSBA loans, bank term loans, LOCs$500KStarts at 9.99%Up to 10 years
AdvancePoint CapitalTerm loans, SBA loans, STLs, LOCs, MCAs, equipment financing, invoice financing$5 millionVaries by lender/productVaries by lender/product
Fundera by NerdWalletEquipment financing, LOCs, STLs, credit cards, & moreVaries by lender/productVaries by lender/productVaries by lender/product
FundboxLines of credit$150KFees start at 4.66%12 or 24 weeks
Wells Fargo Business LoansLines of credit, SBA loans$150KStarts at Prime + 1.75%Varies by product
LoanBuilderShort-term loans$150KUndisclosed one-time fees17 to 52 weeks
AccionWorking capital loans, equipment financing$250KStarts at 8.49%12 to 60 months
Kiva U.S.Crowdfunded loans$15K0%Up to 36 months

BusinessLoans.com: Best Small Business Loans For Bad Credit Borrowers

BusinessLoans.com

Total Rating 4.0
Rates & Fees4.6

Services4.0

Eligibility Requirements4.1

Application3.0

Sales & Advertising Transparency3.6

Customer Service4.1

User Reviews4.4



Pros

  • Funding up to $3 million
  • No minimum credit score required
  • Quick & easy application process

Cons

  • Nontransparent rates & fees
  • Funding can take a while to disburse

Why We Chose BusinessLoans.com For Best Loans For Bad Credit

BusinessLoans.com is a small business lending marketplace that connects business owners with numerous lenders and financial products. We like that BusinessLoans.com offers funding options for businesses that may have challenges getting funded elsewhere due to low credit scores or a short time in business.

While BusinessLoans.com does work with borrowers with less-than-stellar credit, it offers a wide variety of funding for all businesses, Applicants with higher credit scores and a longer time in business may qualify for funding with more favorable terms.

BusinessLoans.com Services

BusinessLoans.com works with lending partners to provide a wide variety of services, including:

  • Term loans
  • Short-term loans
  • Lines of credit
  • Merchant cash advances

BusinessLoans.com Rates & Fees

Rates and fees vary based on the lender and financial product you qualify to receive.

BusinessLoans.com Eligibility Requirements

To qualify for funding through BusinessLoans.com, you must meet these requirements:

BusinessLoans.com
Time In Business 6 months
Business Revenue $100,000
Credit Score No minimum

Note that even if you don’t meet the revenue or time in business requirements, BusinessLoans.com may be able to connect you with a financial product that works for your business.

Choose BusinessLoans.com If...

  • You want to compare lender offers
  • You operate a new business and don’t qualify for funding elsewhere
  • You have a low credit score and don’t qualify for funding elsewhere

Get Started With BusinessLoans.com

Read our in-depth review

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Lendio: Best Small Business Loan Marketplace

Total Rating 4.8
Rates & Fees5.0

Services5.0

Eligibility Requirements4.9

Application4.5

Sales & Advertising Transparency4.4

Customer Service4.9

User Reviews4.9



Pros

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

Cons

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

Why We Chose Lendio As Best Small Business Loan Marketplace

We like that Lendio helps you compare lenders using one simple 15-minute application. You can receive loan offers from over 75+ lenders within 72 hours. This allows you to easily compare offers to ensure you get the best rates and terms. Lendio’s loan matching service is completely free to use.

Lendio also offers a wide variety of financial products, even providing options for borrowers with less-than-stellar credit.

Lendio Services

Lendio offers nearly any type of funding you need for your business, including:

  • Short-term loans up to $500,000
  • Term loans up to $2 million
  • Lines of credit  up to $500,000
  • Merchant cash advances up to $200,000
  • SBA loans up to $5 million
  • Equipment financing up to $5 million

Lendio Rates & Fees

Lendio’s rates and fees vary based on product type and the lender you select. Lendio has low-interest options such as SBA loans, as well as more expensive funding like MCAs for borrowers with bad credit or other challenges.

Lendio Eligibility Requirements

Lendio works with multiple lenders, and each lender has its own set of eligibility requirements for funding. However, Lendio recommends having a credit score of at least 550 to qualify.

Additionally, the more revenue, higher credit score, and longer time in business you have, the better odds you have for qualifying for better rates and terms.

Choose Lendio If...

  • You want to compare offers from 75+ lenders with one application
  • You’re unsure of what type of funding you’ll qualify for
  • You have credit, time in business, or revenue challenges that prevent you from getting funded elsewhere

Get Started With Lendio

Read our in-depth review

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OnDeck: Best For Fast Funding

Total Rating 3.9
Rates & Fees4.6

Services2.9

Eligibility Requirements3.8

Application4.5

Sales & Advertising Transparency3.8

Customer Service4.1

User Reviews4.0



Pros

  • Multiple types of financing are available
  • The application process is fast & easy
  • Funds are disbursed quickly

Cons

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

Why We Chose OnDeck For Fast Funding

Speed is what helps OnDeck stand out from the crowd of small business lenders. The application process for a loan or line of credit is fast and easy, and once you accept your loan, you can be funded as quickly as the same business day. One thing to note is that same-day funding isn’t available in all states, so make sure to check OnDeck’s terms before you apply.

OnDeck also provides excellent customer support, transparent fees and terms, and funding options for businesses that may not qualify with other lenders. OnDeck reports to business bureaus, so timely payments can help you boost your business credit score to qualify for better rates, terms, and products in the future.

OnDeck Services

OnDeck offers term loans up to $250,000 with repayment terms of up to 24 months. OnDeck also offers lines of credit up to $100,000 with repayment terms of 12, 18, or 24 months.

OnDeck Rates & Fees

For OnDeck’s term loans, APRs start at 29.9%, with most borrowers paying an average of 55.8%. An origination fee of up to 5% may apply.

OnDeck’s lines of credit APRs start at 29.9%, with the average borrower paying about 52.6%. There are no origination fees, but a $20 monthly maintenance fee will apply to most borrowers.

OnDeck Eligibility Requirements

To qualify for an OnDeck term loan or line of credit, you must meet these requirements:

OnDeck
Time In Business 1 year
Business Revenue $100,000/year
Credit Score 625

Choose OnDeck If...

  • You want fast (possibly same-day) funding
  • You don’t qualify for a loan or line of credit from other lenders
  • You want a loan that will improve your business credit

Get Started With OnDeck

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SmartBiz: Best For SBA Loans

Total Rating 4.7
Rates & Fees4.8

Services4.8

Eligibility Requirements4.8

Application4.5

Sales & Advertising Transparency4.9

Customer Service4.9

User Reviews3.5



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

Why We Chose SmartBiz For Best SBA Loans

SmartBiz simplifies the SBA loan process, working with a network of bank lenders that can help eligible small businesses receive low-cost, long-term SBA small business loans.

In addition to SBA loans, SmartBiz offers other small business solutions including custom funding — all with just one single application.

SmartBiz Services

SmartBiz offers the following products through its lending partners:

  • SBA loans up to $500,000
  • Bank terms loans up to $350,000
  • Lines of credit up to $150,000
  • Custom financing up to $500,000
  • ERC refunds

SmartBiz Rates & Fees

Interest rates for SBA loans range from 11.25% to 13.25%. Term loans have interest rates starting at 9.99%.

SmartBiz Eligibility Requirements

SmartBiz’s eligibility requirements are as follows:

SmartBiz
Time In Business 2 years
Business Revenue Sufficient cash flow to support repayments
Credit Score
  • 650 for SBA loans
  • 660 for bank term loans

If you don’t meet these requirements, SmartBiz may be able to find a custom solution for your business.

Choose SmartBiz If...

  • You want a low-cost, long-term SBA loan
  • You have good credit and want to receive a bank term loan
  • You want a custom financing solution

Get Started With SmartBiz

Read our in-depth review

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AdvancePoint Capital: Best Loans Backed With Excellent Customer Service

AdvancePoint Capital

Total Rating 4.3
Rates & Fees4.1

Services4.5

Eligibility Requirements3.8

Application4.5

Sales & Advertising Transparency4.2

Customer Service4.3

User Reviews4.9



Pros

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

Cons

  • Nontransparent borrowing requirements

Why We Chose AdvancePoint Capital For Loans With Excellent Customer Service

AdvancePoint Capital is a loan marketplace that stands out for its great customer service. In addition to offering numerous ways to get in touch, AdvancePoint has been praised by users for its helpful, friendly, and knowledgeable customer support reps that help businesses find the right funding for any situation.

Good customer support isn't all AdvancePoint has going for it, either. High borrowing limits of up to $5 million, a wide selection of funding products through a network of lenders, and an easy application process make AdvancePoint Capital a great choice for nearly any business.

AdvancePoint Capital Services

AdvancePoint Capital is a loan marketplace with lending partners that offer:

  • Term loans
  • SBA loans
  • Short-term loans
  • Business lines of credit
  • Invoice financing
  • Equipment financing
  • Merchant cash advances
  • Business cash advances

AdvancePoint Capital Rates & Fees

Rates and fees vary based on the products and lenders you are matched with in AdvancePoint’s network.

Low-interest, long-term options for qualified borrowers are available, while short-term, higher-cost products are available for businesses that don’t meet traditional borrowing requirements.

AdvancePoint Capital Eligibility Requirements

Borrowing requirements vary by product and lender. AdvancePoint Capital does disclose that you must have a minimum credit score of 520 to qualify for short-term loans and a score of at least 550 to qualify for business cash advances.

Some products, such as invoice financing and equipment financing, may have lower minimum requirements, while term loans and SBA loans have higher credit score, revenue, and time in business requirements.

Unfortunately, AdvancePoint is not very upfront about time in business and revenue requirements.

Choose AdvancePoint Capital If...

  • You want to work with a team of knowledgable, helpful reps to find the best loan for your business
  • You want to choose the best offer from multiple lenders with a single application
  • You don’t qualify for traditional loans and want to explore your options

Get Started With AdvancePoint Capital

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Fundera by NerdWallet: Best For Equipment Financing

Fundera by NerdWallet

Total Rating 4.6
Rates & Fees4.8

Services4.5

Eligibility Requirements4.9

Application4.5

Sales & Advertising Transparency4.4

Customer Service4.9

User Reviews4.7



Pros

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

Cons

  • Rates can be expensive
  • Some additional fees are charged

Why We Chose Fundera For Best Equipment Financing

We like that Fundera works with numerous lenders to provide funding to many businesses, even new businesses or borrowers with low credit scores. Fundera makes it easy to compare numerous offers to get the best rates and terms while also providing good customer support throughout the process.

Fundera also gives you access to a wide variety of funding products, including equipment financing. With an equipment loan, you can receive up to 100% financing with rates starting at around 4% and repayment terms up to six years.

Fundera Services

As a loan matchmaker, Fundera can connect businesses to multiple products, including:

  • Equipment financing
  • Installment loans
  • Short-term loans
  • Lines of credit
  • SBA loans
  • Invoicing financing
  • Merchant cash advances

Fundera Rates & Fees

Rates and fees vary based on the funding product and lender you select.

For equipment financing, rates range from 4% to 40% with repayment terms of five to six years.

Fundera Eligibility Requirements

Because Fundera works with multiple lenders, there are no set eligibility requirements in terms of annual revenue, personal credit score, and time in business. However, borrowers with good credit, a longer time in business, and higher revenues may qualify for better offers.

To qualify for equipment financing specifically, you must have been in business for over two years, have over $130,000 in annual revenue,  and have a personal credit score of at least 600.

Choose Fundera If...

  • You need financing that covers up to 100% of the cost of your equipment
  • You want to compare various loans and lenders
  • You have a low credit score, operate a newer business, or other challenges that prevent you from obtaining funding elsewhere

Get Started With Fundera by NerdWallet

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Fundbox: Best Lines Of Credit For Bad Credit Borrowers

Total Rating 3.8
Rates & Fees3.1

Services3.6

Eligibility Requirements4.5

Application4.8

Sales & Advertising Transparency3.8

Customer Service3.0

User Reviews4.4



Pros

  • Low credit score requirements
  • Funds are disbursed quickly

Cons

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

Why We Chose Fundbox For Best Lines Of Credit For Bad Credit

Fundbox is a lender with low borrower requirements, making it a viable funding option for businesses that have been in operation for as little as six months. Fundbox also lends to business owners with credit scores as low as 600.

Fundbox’s application process is quick, with some borrowers getting an approval decision in as little as three minutes. The funding process is just as speedy, with some borrowers receiving funds as quickly as the next business day after approval.

Fundbox Services

Fundbox offers business lines of credit up to $150,000.

Fundbox Rates & Fees

Fundbox’s rates start at 4.66% for 12-week repayment terms and 8.99% for LOCs with 24-week repayment terms.

Fundbox Eligibility Requirements

To qualify for a Fundbox line of credit, you must meet these requirements:

Fundbox
Time In Business 6 months
Business Revenue $100,000/year
Credit Score 600

Choose Fundbox If...

  • You want a flexible line of credit to draw from as needed
  • You have a low credit score and don’t qualify for funding elsewhere
  • You’ve only been in business 6+ months and need funding

Get Started With Fundbox

Read our in-depth review

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Wells Fargo Business Loans: Best Low-Interest Bank Lines Of Credit

Wells Fargo Business Loans

Total Rating 3.8
Rates & Fees5.0

Services3.9

Eligibility Requirements3.7

Application3.8

Sales & Advertising Transparency4.6

Customer Service1.7

User Reviews1.5



Pros

  • 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

Why We Chose Wells Fargo For Best Bank Lines Of Credit

If you want competitive rates for your business line of credit, you can’t go wrong with Wells Fargo. Wells Fargo offers low-interest lines of credit for credit-worthy borrowers. Options are even available for businesses that have been in operation for less than two years.

For businesses that want a more traditional loan option, Wells Fargo also offers SBA 7(a) and SBA 504 loans with repayment terms up to 25 years.

Wells Fargo Services

Wells Fargo offers the following services to businesses:

  • BusinessLine lines of credit up to $150,000 for businesses in operations for 2+ years
  • Small Business Advantage lines of credit up to $50,000 for businesses in operations for less than 2 years
  • SBA 7(a) loans up to $5 million
  • SBA 504 loans up to $6.5 million

Wells Fargo Rates & Fees

Rates and fees vary by financial product. BusinessLine LOCs have rates starting at Prime + 1.75%. Small Business Advantage LOCs have rates starting at Prime + 4.5%. SBA loans may be fixed or variable and are based on the current SBA rates.

Wells Fargo Eligibility Requirements

To qualify for lending through Wells Fargo, you must meet these requirements:

Wells Fargo
Time In Business 2+ years (for most products)
Business Revenue $1.50 in cash flow for every $1 borrowed
Credit Score 640

Choose Wells Fargo If...

  • You want a low-interest line of credit
  • You want a low-interest, long-term SBA loan
  • You have a good credit score and want to get the best rates and terms

Get Started With Wells Fargo Business Loans

Read our in-depth review

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LoanBuilder: Best Loans For New Businesses

Total Rating 3.5
Rates & Fees4.1

Services2.9

Eligibility Requirements3.4

Application3.8

Sales & Advertising Transparency3.8

Customer Service2.8

User Reviews4.1



Pros

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

Cons

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

Why We Chose LoanBuilder Loans For New Businesses

What makes LoanBuilder stand out is that businesses that have been in operation for as little as nine months may qualify for funding, making this a good option for newer businesses. Borrower requirements across the board are also more relaxed than banks, making it easier for more businesses to qualify.

LoanBuilder Services

LoanBuilder offers short-term business loans of $5,000 to $100,000, although repeat borrowers may qualify for up to $150,000. Loans are repaid over 17 to 52 weeks.

LoanBuilder Rates & Fees

LoanBuilder does not use a traditional interest rate. Instead, it charges a one-time fee. Though these fees are no longer disclosed, previous fee ranges disclosed were 2.9% through 18.72% of the borrowing amount.

LoanBuilder Eligibility Requirements

You must meet these requirements to qualify for LoanBuilder’s short-term loans:

LoanBuilder
Time In Business 9 months
Business Revenue $42,000/year
Credit Score 620

Choose LoanBuilder If...

  • You want a fast and easy loan
  • You’ve been in business for less than one year
  • You want a loan with a simple, one-time fee that’s easy to understand

Get Started With LoanBuilder

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Accion: Best Loans For Startups & Underserved Borrowers

Total Rating 3.8
Rates & Fees5.0

Services2.1

Eligibility Requirements4.1

Application3.5

Sales & Advertising Transparency4.8

Customer Service3.9

User Reviews3.2



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

Why We Chose Accion For Startups & Underserved Borrowers

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.

In addition to offering funding, Accion can also connect you to small business coaching, educational resources, and support networks to help your business succeed.

Accion Services

Accion offers small business loans from $5,000 to $250,000 for eligible borrowers.

Equipment financing of $5,000 to $250,000 is also available.

Accion Rates & Fees

Interest rates start at 8.49%. An origination fee of 3% to 5% will also apply. Repayment terms are from one to five years.

Rates and terms are not disclosed for equipment financing.

Accion Eligibility Requirements

To qualify for a loan from Accion, you must meet these requirements:

Accion
Time In Business 12 months
Business Revenue $50,000/year
Credit Score No minimum

To qualify for equipment financing, you must have a minimum credit score of 600 and have a CDL or six months of driving experience.

Choose Accion If...

  • You’re an underserved borrower that can’t qualify for funding elsewhere
  • You own a startup business and don’t qualify for other funding
  • You want to work with a lender that provides other resources, including support and coaching

Get Started With Accion

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Kiva U.S.: Best Crowdfunded Small Business Loans

Total Rating 4.2
Rates & Fees5.0

Services2.9

Eligibility Requirements4.9

Application3.5

Sales & Advertising Transparency5.0

Customer Service4.1

User Reviews4.4



Pros

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

Cons

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

Why We Chose Kiva U.S. For Best Crowdfunded Loans

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.

There are no credit score requirements to qualify. Friends and family lend to you through the platform to prove your creditworthiness over a 15-day period. Next, you’ll enter a 30-day public funding period to connect to over 1.6 million lenders.

Kiva U.S. Services

Kiva U.S. offers small business loans up to $15,000 with repayment terms up to 36 months.

Kiva U.S. Rates & Fees

Unlike other loans, Kiva U.S. small business loans have 0% interest and no additional fees.

Kiva U.S. Eligibility Requirements

Kiva U.S. does not have any requirements in terms of minimum credit scores, revenue, or time in business. The only requirements are that you are at least 18, have a U.S.-based business that isn’t in bankruptcy, and have friends and family willing to loan money to you.

Choose Kiva U.S. If...

  • You have friends and family willing to loan money to you
  • You’re willing to raise money and wait for funding in exchange for a 0% interest rate
  • You operate a community-based business

Get Started With Kiva U.S.

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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.

Read more about how we rate small business lenders.

Understanding Small Business Loans

Before you submit a loan application, it’s important to understand the types of loans available and how to choose the best loan for your business.

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

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 loan options on the market, you can make a more informed decision before committing to a loan and signing on the dotted line.

Which small business lender has the lowest fees?
Chelsea Krause
Chelsea KrauseLead Staff Writer
LoanBuilder has no hidden fees and only charges a one-time borrowing fee, so if you’re looking for low fees, this is a good option.

FAQs: Small Business Loans

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.

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Erica Seppala

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.
Erica Seppala
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