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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
  • 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 how do you choose the right funding option? Start your search with our picks for the best small business loans.

Start your search with these top lenders. Whether you’re purchasing new equipment, expanding your business, or funding an emergency expense, there’s funding out there for your business. 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: 6.99%+
  • SBA loans, term loans, LOCs, & ERC refunds
  • FICO: 650+ for SBA loans
  • APR: 6.99%+

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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

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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: 620+
  • Fees: 2.9%+ of borrowing amount
  • Short-term loans
  • FICO: 620+
  • Fees: 2.9%+ of borrowing amount

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  • Installment loans
  • FICO: No minimum
  • APR: 5.99%+
  • Installment loans
  • FICO: No minimum
  • APR: 5.99%+

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

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Read more below to learn why we chose these options.

Table of Contents

Compare Small Business Loans

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 loans from lenders including Businessloans.com, Lendio, OnDeck, Fundbox, and more.

BusinessLoans.com: Best Small Business Loan Options For Bad Credit Borrowers

BusinessLoans.com


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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 Small Business Loans

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.

Get Started With BusinessLoans.com

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Lendio: Best Small Business Loan Marketplace

Lendio


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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 For Best Small Business Loans

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.

Get Started With Lendio

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OnDeck: Best Small Business Loan 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 Best Small Business Loans

Speed is what helps OnDeck stand out from the crowd of small business lenders. The application process 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 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 months.

OnDeck Rates & Fees

For OnDeck’s term loans, APRs range from 29.9% to 97.3%, with most borrower’s paying an average of 62.1%. An origination fee of up to 5% may apply.

OnDeck’s lines of credit have APRs that range from 29.9% to 65.9%, with the average borrower paying about 48.9%. 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

Get Started With OnDeck

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SmartBiz: Best For SBA Loans

SmartBiz


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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 Small Business 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 $350,000
  • Bank terms loans up to $500,000
  • 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 10.5% to 11.5%. Term loans have interest rates starting at 8.99%. Custom financing rates start at 6.99%.

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.

Get Started With SmartBiz

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Fundera: Best For Equipment Financing

Fundera by NerdWallet


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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 Small Business Loans

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.

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, long time in business, and higher revenues may qualify for better offers.

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 Small Business Loans

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

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Wells Fargo: Best Low-Interest Bank Lines Of Credit

Wells Fargo Business Loans


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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 Small Business Loans

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

Get Started With Wells Fargo Business Loans

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LoanBuilder: Best Small Business 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

Why We Chose LoanBuilder For Best Small Business Loans

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 has high loan limits of up to $500,000, which exceeds the limits of many of its competitors.

LoanBuilder Services

LoanBuilder offers short-term business loans of $5,000 to $500,000. Loans are repaid over 13 to 52 weeks.

LoanBuilder Rates & Fees

LoanBuilder does not use a traditional interest rate. Instead, it charges a one-time fee of 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

Get Started With LoanBuilder

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Accion: Best Small Business Loans For Startups & Underserved Borrowers

Accion


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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 Best Small Business Loans

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 up to $100,000 for eligible borrowers with repayment terms of up to five years.

Accion Rates & Fees

Accion’s rates range from 5.99% to 25.99%. Additional fees, such as closing costs and processing fees, may apply.

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

Get Started With Accion

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Kiva U.S.: Best Crowdfunded Small Business Loans

Kiva U.S.


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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 Small Business 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 of 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.

Get Started With Kiva U.S.

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Business Loan & Funding Products Review Methodology

Merchant Maverick has been researching and reviewing business lenders since 2015. Our writers have tested over a hundred different funding products, including traditional term loans, online loans, lines of credit, start-up loans, merchant cash advances, and equipment financing. In each review, we evaluate rates and fees, services, eligibility requirements, application process, sales and advertising transparency, customer service, and user reviews.

Read more about how we rate business loans and funding products.

When comparing different lenders and loan products, we consider many data points, including the ease and transparency of the application process, interest rates, repayment structure, sales ethics, time to funding, revenue and time in business qualifications, and credit score requirements. Our lists of the best funding products include only those we’ve deemed worthwhile from multiple vantage points, and often share qualities such as widespread accessibility across fifty states, low rates, flexible requirements, and competitive borrowing amounts.

We spend an average of 10-15 hours researching and updating each one of our lists, making sure the loans and funding products included meet our internal standards for quality and reputation.


Why We Don't Recommend These Small Business Loan Options

BlueVine

Previously, BlueVine made our list for its invoice factoring services. Unfortunately, invoice factoring is no longer offered by BlueVine. The company does offer lines of credit, which previously were a good fit for newer businesses, businesses with lower monthly revenue, and/or business owners with lower credit scores. However, the borrower requirements have increased significantly since our last update, with small businesses needing a credit score of 625+, a time in business of at least two years, and monthly revenues of at least $40,000/month to qualify.

Understanding Small Business Loans

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.

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
View Erica Seppala's professional experience on LinkedIn.

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