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Best Personal Loans For Business

Our list of the best personal loans for business includes lenders with quick application processes, low borrower requirements, and competitive terms and fees.

    Chris Motola
  • UPDATED

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Personal loans can be used to fund business expenses. In fact, personal loans can be one of the easiest ways to fund a brand-new business that wouldn’t qualify for the best small business loans.

Personal loans for business use your personal credit score and borrower history rather than your business’s, effectively presenting an alternative risk profile to skittish lenders. You can then use the personal loan for your business expenses.

Before pulling up a loan application, you’ll want to know your personal loan options. Below, we’ve presented our top picks for personal loan lenders that can be used for business expenses.

Before pulling out a personal loan, be sure to check if your business qualifies for the ERC tax credit. Eligible small business owners could get up to $26,000 per employee as a tax refund that you don’t have to pay back. These employee retention credit companies make filing easy.

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Rocket Loans

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  • Installment loans
  • FICO: 640+
  • APR: 9.116% - 29.99%
  • Installment loans
  • FICO: 640+
  • APR: 9.116% - 29.99%

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LendingPoint

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  • Installment loans
  • FICO: 600+
  • APR: 7.99% - 35.99%
.
  • Installment loans
  • FICO: 600+
  • APR: 7.99% - 35.99%
.

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Discover Personal Loans

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  • Installment loans
  • FICO: 660+
  • APR: 6.99% - 24.99%
  • Installment loans
  • FICO: 660+
  • APR: 6.99% - 24.99%

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Upstart

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  • Installment loans
  • FICO: 580+
  • APR: 6.7% - 35.99%
  • Installment loans
  • FICO: 580+
  • APR: 6.7% - 35.99%

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Avant

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  • Installment loans
  • FICO: 580+
  • APR: 9.95% - 35.99%
  • Installment loans
  • FICO: 580+
  • APR: 9.95% - 35.99%

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LendingClub Personal Loans

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  • Installment loans
  • FICO: No minimum given
  • APR: 5.32% - 35.89%
  • Installment loans
  • FICO: No minimum given
  • APR: 5.32% - 35.89%

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Prosper

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  • Installment loans
  • FICO: 600+
  • APR: 7.95% - 35.99%
  • Installment loans
  • FICO: 600+
  • APR: 7.95% - 35.99%

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Read more below to learn why we chose these options.

Table of Contents

7 Top Personal Loans For Business In 2023

The best personal loans for business have competitive rates and terms, ample funding amounts, and be able to be used for a variety of purposes. Here are the best personal loans for small business, including lenders like Discover, LendingPoint, Rocket Loans, Avant, Upstart, Prosper, and LendingClub.

Rocket Loans: Best For Fair Credit

Rocket Loans


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Pros

  • Short application
  • Good customer service
  • Funds are disbursed relatively quickly

Cons

  • Potentially high origination fee

Why We Chose Rocket Loans For Best Personal Loans For Business

Rocket Loans offers a fast and relatively painless application process, as well as competitive rates, for individuals with fair credit. Rocket Loans can be used for a variety of business-related purposes.

Rocket Loans Services

LendingPoint offers installment loans in amounts between $2,000 and $45,000, with terms lengths from three to five years.

Rocket Loans Rates & Fees

Rocket Loan’s APRs range between 9.116% and 29.99%. Borrowers who sign up for automatic repayments will get a discount on their rates.

Rocket Loans charges an origination fee.

Rocket Loans Eligibility Requirements

Here are the minimum requirements to get a personal loan through Rocket Loans:

  • Time In Business: N/A
  • Personal Credit Score: 640+
  • Business Revenue: N/A

Get Started With Rocket Loans

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LendingPoint: Best For Fast Funding

LendingPoint


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Pros

  • Borrower qualifications are lower than banks’
  • Short application process
  • Few extra fees

Cons

  • Not available in West Virginia or Nevada

Why We Chose LendingPoint For Best Personal Loans For Business

If you’re at least 18 years old, have a verifiable bank account, fair credit, and an annual income of $35,000 or more, you may be able to get a personal loan from LendingPoint that you can then use to pay for business expenses. LendingPoint is a little more lax when it comes to credit scores than many of its competitors, approving borrowers with scores as low as 600.

LendingPoint Services

LendingPoint offers installment loans in amounts between $2,000 and $36,500, with terms lengths from two to five years.

LendingPoint Rates & Fees

LendingPoint’s APRs range between 7.99% and 35.99%.

One notable quirk of LendingPoint is that origination fees are added to the amount you borrow rather than subtracted from the amount you receive.

LendingPoint Eligibility Requirements

Here are the minimum requirements to get a personal loan through LendingPoint:

  • Time In Business: N/A
  • Personal Credit Score: 600+
  • Business Revenue: N/A

Get Started With LendingPoint

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Discover Personal Loans: Best For Flexible Terms

Discover Personal Loans


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Pros

  • No prepayment penalties
  • No extra fees
  • Funds are disbursed quickly

Cons

  • High credit score requirements

Why We Chose Discover For Best Personal Loans For Business

Discover is mainly known for being a credit card network, but it also offers personal loans. These loans are primarily marketed as a way to pay off debt, but you can also use them to fund a startup business. Best of all, they have no origination fees, and you can choose from a variety of term lengths.

Discover Services

Discover offers installment loans in amounts between $2,500 and $40,000, with terms lengths between three and seven years.

Discover Rates & Fees

Discover’s APRs range between 6.99% and 24.99%.

There are no additional fees other than late payment fees.

Discover Eligibility Requirements

Here are the minimum requirements to get a personal loan through Discover:

  • Time In Business: N/A
  • Personal Credit Score: 660+
  • Business Revenue: N/A

Get Started With Discover Personal Loans

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Upstart: Best For Poor Credit Scores

Upstart


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Pros

  • Borrower qualifications are lower than banks
  • No prepayment penalties
  • Funds are disbursed quickly
  • Application is usually fast and easy

Cons

  • Not available in every state.

Why We Chose Upstart For Best Personal Loans For Business

Upstart’s underwriting process is flexible, taking into account credit scores when they’re available (you’ll still want to clear 580 if you have a score) and education, credentials, and work experience. This makes Upstart a viable way to get around the Catch-22 needing to have a credit history in order to get credit, especially for young entrepreneurs.

Upstart Services

Upstart offers installment loans in amounts between $1,000 and $50,000, with three- or five-year repayment terms.

Upstart Rates & Fees

Upstart’s APRs range between 6.7% and 35.99%, with the average APR for a five-year loan being 26.48%.

There are no downpayment or prepayment fees.

Upstart Eligibility Requirements

To qualify for an Upstart loan, you must meet these requirements:

  • Time In Business: N/A
  • Personal Credit Score: 580+
  • Business Revenue: N/A

Get Started With Upstart

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Avant: Best For Lower Credit Scores

Avant


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Pros

  • Fast application process
  • Builds credit
  • Funds are disbursed quickly

Cons

  • Some additional fees

Why We Chose Avant For Best Personal Loans For Business

Avant specializes in financial services for individuals with poor credit. It offers both unsecured and secured loans (which use a vehicle you own as collateral). Avant’s rates and borrower qualifications are quite reasonable for their niche, although we’d advise applying for an unsecured loan over a secured one as there doesn’t appear to be too many advantages to the latter.

Avant Services

Avant offers installment loans in amounts between $2,000 and $35,000, with two- to five-year repayment terms. Minimum loan amounts may vary by state.

Avant Rates & Fees

Avant’s APRs range between 9.95% and 35.99%, with the average APR for a five-year loan being 26.48%.

Avant charges a one-time administration fee of 4.95%

Avant Eligibility Requirements

To qualify for an Avantt loan, you must meet these requirements:

  • Time In Business: N/A
  • Personal Credit Score: 580+
  • Business Revenue: N/A

Get Started With Avant

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LendingClub Personal Loans: Best For Building Credit

LendingClub Personal Loans


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Pros

  • Fast and easy application process
  • Funds are disbursed quickly
  • Builds personal credit

Cons

  • Not available in Iowa

Why We Chose LendingClub For Best Personal Loans For Business

While LendingClub does offer business loans, it primarily deals in personal loans that can be used for entrepreneurial purposes. As a P2P lender, LendingClub isn’t quite as beholden to typical borrower qualifications as you’d see with a bank lender or even many online ones. Though on the pricier side, LendingClub does give borrowers ample time to repay and build their credit in the process (LendingClub reports positive as well as negative repayment behavior).

LendingClub Services

LendingClub offers installment loans in amounts between $1,000 and $40,000, with three- or five-year repayment terms.

LendingClub Rates & Fees

LendingClub’s APRs range between 5.32% and 35.89%.

There are no downpayment or prepayment fees.

LendingClub Eligibility Requirements

Though LendingClub does weigh your personal credit score and history into the process, there’s no minimum score:

  • Time In Business: N/A
  • Personal Credit Score: 580+
  • Business Revenue: N/A

Get Started With LendingClub Personal Loans

Read our in-depth review

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Prosper: Best For Early Repayment

Prosper


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Pros

  • Fast and easy application
  • No prepayment penalties
  • Excellent customer service

Cons

  • Funds can take awhile to disburse

Why We Chose Prosper For Best Personal Loans For Business

While Prosper isn’t the cheapest or fastest option on our list, it offers fair rates, particularly for borrowers with excellent credit. If these borrowers also take advantage of Prosper’s lack of prepayment penalties, they can get a solid deal on startup funding.

Prosper Services

Prosper offers installment loans in amounts between $2,000 and $50,000, with three- or five-year repayment terms.

Prosper Rates & Fees

Prosper’s APRs range between 7.95% and 35.99%.

Prosper Eligibility Requirements

Here are the minimum qualifications to get a loan through Prosper:

  • Time In Business: N/A
  • Personal Credit Score: 600+
  • Business Revenue: N/A

Get Started With Prosper

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When Should I Use A Personal Loan For My Business?

A personal loan for business can be used for any business expense, including purchasing inventory or supplies, covering operating expenses, or funding an expansion. If your business is new or hasn’t even opened its doors, a personal loan can be used to fund your startup costs.

When You Can’t Qualify For A Business Loan

With so many business loan options on the market, though, why should you choose a personal loan? The reason is simple: business loan requirements can be difficult to meet for many business owners. A lender evaluates your personal and business credit history. Your time in business, annual revenue, and other factors are also considered for approval. For some businesses, this can pose a challenge.

A personal loan for business purposes and help resolve these problems. Your personal credit score, income, debt-to-income ratio (DTI), and other personal factors will determine your approval and maximum borrowing amount. Your time in business and business revenues will not be a consideration for loan approval.

When You Can Get Better Financing Options

If you have a high credit score, a solid credit history, and verifiable income, applying for a personal loan for business may be a smart financial move. Going this route means you can receive a higher loan amount, lower interest rates, and more financing options than with business loans.

When You’re Starting Your Business

Most business lenders want to see that your business has been around for a while (usually six months, minimum) before they extend you a business loan. While personal loans aren’t the only startup business loans, they are among the most accessible.

What You Need To Qualify For A Personal Loan

Requirements to qualify for a personal loan vary somewhat depending on the lender. However, for most personal loans, there are a few general requirements. The borrower must be a citizen or permanent resident of the United States. All borrowers must be at least 18 years old.

Credit Score Requirements

A credit score of at least 600 is required to qualify for most personal loans. While some lenders have lower credit requirements, these options typically have much higher rates and fees. Additionally, there are business loans for bad credit.

Personal Credit History

In addition to your credit score, lenders will also review your personal credit history. Some lenders will reject your loan application if you have recent bankruptcies, collections, or other negative items on your credit report.

Verifiable Income

An additional requirement is a verifiable income. Lenders will also make sure that you can afford the loan by calculating your DTI ratio. This ratio shows the relationship between your debt and your income. Lenders use this to gauge how much of a risk you are and whether you can afford a new loan payment. A good DTI is 36% or less, although some lenders will approve loans for borrowers with a higher DTI.

Which Personal Loan For Business Is Right For You?

If getting a business loan has been a challenge, a personal loan or business expenses can be a smart solution. As with any type of loan, make sure to shop your options and understand the total cost of your loan. Apply for a loan you can afford, make your loan payment as agreed, and be financially responsible when launching, building, or expanding your business.

Ready to get started? Learn how to get a personal loan for your small business. Thinking a business loan may still be a better fit? Check out our guide on how to get a small business loan.

FAQS About Personal Loans For Business

Can a personal loan be used for business?

Yes, some personal loans can be used for business. Check with your prospective lender to see if it’s a valid use of funds.

Which loan is best for business?

The best loan for one business may not be the best for another. Look for a loan that you qualify for that meets the needs of your business.

What's the best financing for small businesses?

There’s no one-size-fits-all financing solution for small businesses. Instead, look for financing you can qualify for that offers the best rates and terms.

What company is the easiest to get a personal loan from?

Most personal loan lenders have pretty similar qualifications. You may want to consider Upstart if you have no credit history or Avant if your credit score is low.

Can I make a personal loan to my business?

Yes, you can make a personal loan to your business. You should consult an attorney if you want to lend your own money to your business, as it can lead to some complicated tax situations.

What loans can small businesses take?

Small businesses can take a variety of loans ranging from installment loans to lines of credit. Both personal and business can be used for small business expenses, but check with your prospective lender to ensure you’re compliant with the loan’s terms.

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Chris Motola

Chris Motola

Senior Staff Writer at Merchant Maverick
Chris has been writing about small business topics since 2003. In 2015, he joined Merchant Maverick, where he writes about business financing, payment processing, and demographic trends in entrepreneurship. Chris has been featured in Fox Business, ABC News, Yahoo Finance, GoBankingRates, Newsweek, BizJournals, and other publications. He has a Bachelor’s of Arts in English Writing Arts from SUNY Oswego, and a Masters of Science in Interactive Media from the University of Central Florida. He currently resides in the Hudson Valley region of New York.
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