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

Start-Up Business Loan Reviews

buyers guide
Sort By
  • Patreon Review

    Read Review Visit Site

    Patreon declares itself a crowdfunding platform for creators, as its platform allows creators to draw a steady, continuous income from The Crowd. This funding model makes Patreon particularly well-suited to creators of viral videos, online journalists, writers, and musicians.

  • Podia Review

    Read Review Start Trial

    For smaller creators looking for a more seller-friendly platform on which to host their campaigns, Podia isn't a realistic alternative; the monthly cost is simply too high.

  • Quirky Review

    Read Review Visit Site

    Pros Connects inventors to each other Free to use Cons Quirky gets the rights to your intellectual property The process by which inventors get paid is convoluted The company warns against using them to make money Overview Over the course of the past decade, crowdfunding sites such as Kickstarter have received lots of attention as […]

  • Republic Review

    Read Review Visit Site

    Republic is an equity crowdfunding company. Be informed that besides the fees charged by Republic, there are additional costs associated with equity crowdfunding. Republic is exclusive and not suitable for small startups.

  • Rocket Loans Review

    Read Review Visit Site

    RocketLoans offers personal loans to eligible borrowers. If you need a loan to start a business and you have fair credit and financials, RocketLoans may be worth considering. Be warned, however, that RocketLoans is not for those with poor credit.

  • SeedInvest Review

    Read Review Visit Site

    SeedInvest is an equity crowdfunding platform. SeedInvest is good for startups with exponential growth potential. It is, however, expensive and has over-complicated pricing/fees.

  • SoFi Personal Loans Review

    Read Review Visit Site Not Yet Rated

    SoFi offers personal loans with better rates and more flexible borrowing options than other lenders. Read on to learn more about SoFi personal loans.

  • Ulule Review

    Read Review Visit Site

    Ulule is a crowdfunder that takes a hands-on approach with helping their campaigners achieve their goals. Be cautious of the over-complicated fees.

  • Wefunder Review

    Read Review Visit Site

    Wefunder is an equity crowdfunding platform for non-accredited investors and the biggest regulation crowdfunding platform. It is good for startups with exponential growth potential. However, keep in mind that Regulation Crowdfunding is legally complex.

  • World Business Lenders Review

    Read Review Visit Site

    World Business Lenders (WBL) is a small business alternative funder offering high-interest funding to businesses that may otherwise fail to qualify for a traditional loan. They have an easy application process but be cautious of their high factor rates.

What is a Startup Business Loan?

Although term โ€œstartupโ€ has many definitions, for the purposes of this category, we define startup loans as any loans used to launch a business. All lenders (and other types of business financiers) reviewed in this category offer financing to businesses three months old or younger.

If you want to know whether your business is eligible to borrow from a specific lender, look at the โ€œBorrower Qualificationโ€ section of the review, which lists all the basic benchmarks your business must meet to be eligible for financing.

Startup financing can come from a number of different sources. Here are the most common:

Friends and Family

If you can no longer fund your business enterprise using your own resources, the next step for many entrepreneurs is to borrow from friends and family. Loans from these sources are very flexible, as they donโ€™t tend to carry interest rates or require a set repayment schedule like other sources of capital. However, if you (or your friends and family) want a little more structure, some platforms help you draft up legal documents, create a payment schedule, disperse payments, and other services.

Personal Loans and Lines of Credit

Although itโ€™s not generally advisable for merchants to mix personal and business expenses, exceptions are often made for startups. Because personal loans are based on your own creditworthiness (and not that of your business), they are often a viable source of financing for startups.

Unfortunately, personal loans are not always easy for entrepreneurs to get. To be eligible for a personal loan, you will have to have at least fair personal credit and a strong source of revenue to support repayments.

Business Loans and Lines of Credit

While more difficult to obtain than from other sources, it is possible to get a business loan or line of credit for your startup via your bank, credit union, the SBA, or an alternative (non-bank) lender.

Often, the easiest source of startup business loans is via a nonprofit. These institutions seek to strengthen communities by helping local businesses, and are often able to offer loans with relatively inexpensive rates and fees.

Entrepreneurs who have collateral to put up (such as a house or vehicle) will have an easier time using this type of financing.

Crowdfunding

A type of funding that has become popular as of late, crowdfunding simply entails raising money via contributions from a large number of people. There are a few different types of business crowdfunding arrangements which vary based on what backers receive for their investment:

  • Debt: You must repay the money borrowed plus interest or a borrowing fee for borrowing. Backers receive their investment back plus some of the interest or fee.
  • Equity: Backers have a share of your business and future revenue.
  • Rewards: Backers receive some sort of reward, often a product made by your business.
  • Donation: Backers simply donate money and receive nothing in return.

Regardless of the rewards model, businesses who use crowdfunding will have to set up a profile, market their business or product, and otherwise attract backers. For this reason, a crowdfunding campaign can take up to a few months to complete.

Cash Flow Financing

Many business lenders are primarily concerned about your businessโ€™s overall profitability, which means that startups are often exempt from borrowing. Cash flow financiers, on the other hand, are more interested in your day-to-day revenue stream. The better your revenue, the more money you will be eligible for. As you might expect, cash flow financing is best for startups that are already generating consistent revenue.

Cash flow financing can come in two forms:

  • Short-Term Loans: As the name might suggest, these are loans with short borrowing term lengths. Generally, instead of interest, they carry a fee that is between 10% and 60% of the borrowing amount, and must be repaid on a daily or weekly basis.
  • Merchant Cash Advances (MCAs): Much like short-term loans, merchant cash advances charge a fee of 10% – 60% of the borrowing amount (instead of interest). However, your advance will be repaid by collecting a percentage of your daily sales.

Cash flow financing tends to require hefty fees and fast repayment schedules, so itโ€™s generally advisable to exercise caution and explore other options before resorting to short-term loans or MCAs.

Any cash flow financier that funds businesses of six months or younger will fall into the startup loans category, but for a full list, head over to the merchant cash advance review category.

Invoice Factoring

B2B businesses often have unique cash flow problems caused by slow-paying customers. If you run such a business, invoice factoring may be the solution. Because invoice factoring is contingent on your customers paying, even startups and young businesses are eligible for financing.

In an invoice factor arrangement, a business sells invoices to a factoring company at a discount in exchange for immediate capital. In doing so, merchants can solve problems that may be caused by unpaid invoices and keep their businesses running smoothly.

Invoice factors are not covered in our startup loans category. For a full list of reviews, head over to our invoice factoring category.

Share

Get Started With Featured Pick! ๐Ÿ†

World Business Lenders is our current featured vendor in this category.




Get Started

Learn more today with no commitment.

Featured Offer: We Recommend QuickBooks ๐ŸŽ‰

Take it for a spin with a free trial.

Try QuickBooks Today

We Recommend Fattmerchant ๐Ÿ†

Fattmerchant is one of our top picks for Credit Card Processing!

 

 

We love Fattmerchant as a credit card processor for its predictable pricing, excellent service, and integrated billing features. Get started today and get your first month for $5 with an exclusive Merchant Maverick promo.

Get Started

Get started with no commitment today.

We Recommend Divvy Card ๐Ÿ†

Divvy Card is one of our top picks for Corporate Charge Cards!

 

 

Divvy offers a free corporate card for virtually any business. Start earning rewards with your corporate spending today.

Get Started

Get started with no commitment today.

We Recommend Fattmerchant ๐Ÿ†

Fattmerchant is one of our top picks for Credit Card Processing!

 

 

We love Fattmerchant as a credit card processor for its predictable pricing, excellent service, and integrated billing features. Get started today and get your first month for $5 with an exclusive Merchant Maverick promo.

Get Started

Get started with no commitment today.

We Recommend Fattmerchant ๐Ÿ†

Fattmerchant is one of our top picks for Credit Card Processing!

 

 

We love Fattmerchant as a credit card processor for its predictable pricing, excellent service, and integrated billing features. Get started today and get your first month for $5 with an exclusive Merchant Maverick promo.

Get Started

Get started with no commitment today.

We Recommend Donorbox ๐Ÿ†

Donorbox is one of our top picks for Donation Systems!

 

 

Donorbox is a versatile, feature-rich, and easy-to-use donation management system that can help you attract more recurring donors. Get started today for free.

Get Started

Get started with no commitment today.

We Recommend BigCommerce ๐Ÿ†

BigCommerce is one of our top picks for eCommerce Platforms!

 

 

Bigcommerce offers exceptional tools for all eCommerce businesses from startups looking to build a site to enterprise-level systems. Now get a 15-day free trial + one month free when you upgrade!

Get Started

Get started with no commitment today.

We Recommend Fattmerchant ๐Ÿ†

Fattmerchant is one of our top picks for Credit Card Processing!

 

 

We love Fattmerchant as a credit card processor for its predictable pricing, excellent service, and integrated billing features. Get started today and get your first month for $5 with an exclusive Merchant Maverick promo.

Get Started

Get started with no commitment today.

We Recommend Helcim ๐Ÿ†

Helcim is one of our top picks for payment processing!

 

 

Helcim has exceptional service and an advanced platform that we highly recommend for businesses in Canada and the US. Get three months free when you sign up with Helcim through our links!

Get Started

Get started with no commitment today.

We Recommend PaymentCloud ๐Ÿ†

PaymentCloud is one of our top picks for credit card processing!

 

 

We love PaymentCloud's predictable pricing and excellent service.

Get Started

Get started with no commitment today.

We Recommend OnDeck ๐Ÿ†

OnDeck is one of our top picks for Business Loans!

 

 

OnDeck is our featured vendor for business loans and lines of credit. If you have at least one year in business, a personal credit score of 600 or higher, and $100K in annual revenue, OnDeck is ready to help your business get funded.

Get Started

Get started with no commitment today.

We Recommend Lendio ๐Ÿ†

Lendio is one of our top picks for PPP/Business Financing!

 

 

Lendio is a free-to-use marketplace that allows you to compare lenders side-by-side. Easily find PPP/SBA loans alongside other financing options.

Get Started

Get started with no commitment today.

We Recommend PaymentCloud ๐Ÿ†

PaymentCloud is one of our top picks for credit card processing!

 

 

We love PaymentCloud's predictable pricing and excellent service.

Get Started

Get started with no commitment today.

We Recommend ADP Payroll ๐Ÿ†

ADP Payroll is one of our top picks for Payroll Software!

 

 

Our reviewers like ADP Payroll for its advanced employee management, strong payroll features, and great customer support.๐Ÿ‘

For a limited time, get three months free when you sign up via our links!

Get Started

Get started with no commitment today.

We Recommend Revel POS ๐Ÿ†

Revel POS is one of our top picks for Point of Sale!

 

 

We love Revel POS for its advanced features and exceptional versatiliy in both the retail and restaurant industries. Get a demo today to find out everything Revel has to offer!

Get Started

Get started with no commitment today.

We Recommend TouchBistro ๐Ÿ†

TouchBistro is one of our top picks for Restaurant POS!

 

 

Our reviewers praised TouchBistro for a well-designed UI, easy to use format, competitive monthly cost, and numerous integrations. Sign up today to see it in action.

Get Started

Get started with no commitment today.

PPP & EIDL Are Not Your Only Options

The SBA has expanded their loan portfolio and we have the list that no one else is talking about (yet) โ€” Sign up for our newsletter to get your free copy!

  • This field is for validation purposes and should be left unchanged.

We Recommend Fundera ๐Ÿ†

Fundera is one of our top picks for SBA loans!

 

 

Fundera is a free-to-use marketplace that allows you to compare lenders side-by-side. Easily find SBA 7(a)loans alongside other financing options.

Get Started

Get started with no commitment today.

We Recommend ShippingEasy ๐Ÿ†

ShippingEasy is one of our top picks for shipping software!

 

 

ShippingEasy got a 5-star review from our team. Get a 30-day free trial to access discounted USPS and UPS shipping rates and print labels in no time. No credit card required.

Get Started

Get started with no commitment today.

We Recommend Square POS ๐Ÿ†

Square POS is one of our top picks for Point of Sale!

 

 

Square is free to use and currently includes a free card reader at sign-up!

No credit card is required to create your account.

Get Started

Get started with no commitment today.


ย 

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 authorโ€™s alone.

Sign up for the Maverick Newsletter

  • Please select topics of interest

  • We occasionally send out emails with special offers.