Small Business Loans For Lawyers, Law Firms, &#038; Attorneys: 6 Options For 2021

Get Started with SmartBiz

SBA loans are highly coveted loans for any small business, including lawyers, since they have low interest rates and long repayment terms. However, they can be somewhat difficult to qualify for and also difficult to apply for. SmartBiz is a service that connects qualified businesses with SBA loans online, simplifying and speeding the SBA loan application process. These loans are for established law firms that need working capital or money to expand, refinance debt, or buy commercial property. SmartBiz online SBA loans can range from $30,000 to $5 million with interest rates as low as 4.75%—much lower than non-SBA online loans or non-SBA bank loans.

To qualify for a loan through SmartBiz, you’ll need to have been in business for at least 2 years, have a personal credit score of at least 650, and a business credit score of at least 150.

Read our SmartBiz review to learn more about SmartBiz rates, terms, and how to apply.

2. Lendio: Best For Numerous Law Firm Funding Options

Lendio

If you are new to business financing and/or don’t have the time to research and apply for multiple loans, Lendio can help. With this online loan marketplace, you can apply to dozens of loans with a single application. Lendio will take your loan requirements and your business’s credentials (credit score, time in business, revenues, etc.) and use that information to match you with pre-offers for loans your firm qualifies for. Lendio’s vast lending network includes numerous types of financing, including short-term loans, SBA loans, lines of credit, and others. The range of interest rates and maximum loan amount depend on which lender Lendio hooks you up with, but Lendio itself does not charge a fee.

Each lender has its own minimum requirements but Lendio generally recommends applicants have a minimum credit score of 550, 6 months in business, and $10,000 in monthly revenue.

Get Started with Lendio

3. Fundera: Best For High-Quality Financing Options

Fundera by NerdWallet

Get Started with Fundera by NerdWallet

Like Lendio, Fundera is another reputable online loan marketplace that lawyers can use to find business financing. Fundera works with fewer partnered lenders, but the lenders they do work with are carefully selected and thoroughly vetted. Some recommended lenders in Fundera’s partnership network include BlueVine, Funding Circle, and Fundbox (more on Fundbox in a bit). In addition to online loans including short-term loans and online lines of credit, Fundera can also connect law firms with SBA loans and PPP loans for COVID-related relief.

Fundera’s borrower qualifications and financing terms and fees depend on the lender you are ultimately partnered with, but Fundera itself does not charge a finder’s fee to borrowers.

4. OnDeck: Best For Smaller Loans

OnDeck

OnDeck is one of the top online small business lenders, period.

This prolific lender is known for its transparency, simple application process, easy-to-meet borrower requirements, and fast funding that can deliver funds in your account as quickly as the same business day. OnDeck offers short-term loans from $5,000 to $250,000 and revolving lines of credit from $6,000 to $100,000. OnDeck loans can have high APRs—the average APR is about 50% but there are discounts for repeat borrowers—and the amounts aren’t as large as those offered by some online lenders. However, an OnDeck loan might be the perfect option if your law firm needs a fast, easy cash infusion for a purpose like payroll or working capital.

To qualify for an OnDeck loan, you’ll need 12 months in business, a credit score of 600, and $100,000 in annual revenues.

Get Started with OnDeck

5. Credibly: Best For Bad Credit

Credibly

Get Started with Credibly

Credibly is another notable online lender that offers funding to small businesses, including attorneys. Credibly has multiple types of short-term and medium-term business financing available, all with transparent pricing and fast service. Credibly has working capital loans for lawyers up to $400,000, and business expansion loans and lines of credit up to $250,000. Credibly fees can be on the high side, but there are discounts for repaying early, as well as low credit score requirements, and longer repayment terms compared to other short-term online lenders—up to 24 months on business expansion loans. Credibly also recently started offering SBA working capital loans up to $150,000, and SBA commercial construction loans up to $20,000,000.

Credibly’s working capital and lines of credit accept applicants credit scores in the 500s and you only need 6 months in business. Business expansion loans and SBA loans require scores in the 600s and a lengthier time in business.

6. Fundbox: Best For Lawyers With Unpaid Invoices

Fundbox

Visit Site

Many lawyers struggle with cash flow issues due to unpaid invoices from clients. Using invoice financing services offered by a lender like Fundbox, you can receive the amount from an unpaid invoice as soon as the next business day, and repay it over a 12 or 24 week term. In addition to invoice financing up to $150,000, Fundbox also offers lines of credit for general business purposes up to $150,000, as well as PPP loans. Interest rates for invoice financing and lines of credit start at 4.66%.

Fundbox is super easy to qualify for and is even open to startup law firms. All you need is a credit score of 500 and two months of history using a compatible invoicing software or accounting software. Applicants with 3 months of history with a compatible business banking account will also qualify.

Note that Fundbox does not lend to lawyers that collecting funds for any purpose other than to pay fees owed to the firm for services provided by the firm. For example, they wouldn’t lend to lawyers involved in debt collection.

Get Started with Fundbox