Best Small Business Loans

Starting and managing a business can get expensive.

How do you get the capital you need for software, hardware, maintenance, and everything in between?

You have several options, including fundraising, crowdfunding, bootstrapping, asking your friends, saving for several years, and finding an investor (or several).

All of which… take a lot of time.

However, one of the quickest ways to get your hands on the money you need is a small business loan.

It’s a great option even if you’re an established business tight on cash.

But there are hundreds of different lenders to choose from. How do you find the best small business loan for you, your business, and your future? Thankfully you’re in the right place.

After extensive research, we narrowed down the top ten small business loans available today. From short term to long term and everything in between, this guide covers it all.

The Best Small Business Loans for Most Businesses

With more than 300 lenders to choose from and loan amounts varying from a few hundred dollars up into the millions, Lendio is an excellent place to start for most small companies needing extra cash.

You can sign up in less than 15 minutes. Plus, you’ll get expert guidance on choosing the best loan options for you and your business.

The 10 Best Small Business Loans to Consider:

1. Lendio – Best for most businesses
2. Accion – Best for fast-growth startups
3. OnDeck – Best for short term loans
4. SmartBiz – Best for SBA loans
5. Kiva – Best 0% interest loans
6. Funding Circle – Best for long term loans
7. StreetShares – Best for unsecured business loans
8. BlueVine – Best for large business loans
9. Rapid Finance – Best for merchant cash advances
10. Crest Capital – Best for equipment financing

#1 – Lendio Review — The Best Small Business Loans for Most Businesses

Lendio is a business loan marketplace with more than 300 lenders nationwide, making it an excellent choice for most small businesses.

November 2020 Update: Lendio is now helping small business owners get COVID-19 relief with the Paycheck Protection Program (PPP loans).

Since its inception, Lendio has funded 107,000+ loans valued at $2+ billion in total. And as a loan marketplace, you can choose from hundreds of different lenders to find the perfect fit for your business.

Some of their most popular lenders include well-known names like Bank of America, American Express, PayPal, and more.

They understand the process can be confusing and continuously work to make it as simple as possible. In 15 minutes, you can apply and start comparing your options.

Lendio’s team will even help you choose the best one. From there, you’ll get everything you need in as little as 24 hours.

On top of that there are dozens of loan types to choose from, including:

• Term loan
• Line of credit
• Equipment financing
• Commercial mortgage
• Credit cards
• Startup loan
• SBA loan
• Short term loan
• Merchant cash advance
• Accounts receivable financing
• Business acquisition loan

Lendio has term loans for up to $2 million and SBA-backed loans up to $5 million. Alternatively, you can use Lendio to get a startup loan for up to $750,000.

Regardless of what you need, this loan marketplace is an excellent choice for small businesses of all shapes and sizes.

#2 – Accion Review — The Best For Startup Loans

The Accion network is a global nonprofit dedicated to serving entrepreneurs, business owners, and communities throughout the nation. They believe that small businesses pave the way for new jobs within local communities. And they exist to help fund those small startup companies.

With a small business loan from Accion, you get loan terms that are fair and flexible. Plus, their interest rates and payback requirements are realistic for startups and new business owners. 

They also offer loan experts to help you through the entire loan application process.

However, they take things further than just the application—they’ll also help you find the right loan for your situation.

Another unique standout of Accion is its dedication to diversity and empowering entrepreneurs from all walks of life. They provide loans to owners of various backgrounds and industries, such as:

• Veteran-owned business loans
• Women-owned business loans
• Restaurant and food industry loans
• Salon and spa loans
• Minority-owned business loans
• Native American business loans
• Green business loans
• Business loans for people with disabilities

If you’re launching a startup or small business that falls into one of these categories, Accion is a top choice to consider.

#3 – OnDeck Review — The Best For Short Term Loans

OnDeck is one of the most reputable and popular small business lenders on the market today, with more than $13 billion in small business loans under their belt. 

Using their services, you can get a short-term loan of up to $250,000 with repayment terms of up to 12 months.

On top of that, OnDeck offers business lines of credit for up to $100,000, with 12-month repayment terms as well. So, if you’re looking for a short-term loan, it’s an excellent place to start.

Plus, applying is easy. All you have to do is fill out a form online or call to complete the application process. From there, an OnDeck loan advisor will help you find the best option for your business.

Unlike other business lenders out there, OnDeck delivers funds on the same day to eligible applicants. This is super helpful, especially if you need cash immediately.

However, not everyone is eligible for an OnDeck small business loan. The minimum qualification requirements include:

• 1 year in business
• 600+ personal FICO score
• $100,000 annual revenue
• Business bank account

If you meet these qualifications and you’re looking for a short-term loan or line of credit, OnDeck is our top recommendation. 

#4 – SmartBiz Review — The Best For SBA Loans

For more than ten years, SmartBiz has served 20,000+ businesses. They’ve also facilitated over $4 billion in small business loans, making them an incredibly popular option.

Small business owners use SmartBiz to complete the application process for SBA loans and bank term loans.

So, it’s a bit different from the other options on this list.

However, their team of experts works to help you secure low-cost financing from banks within the SmartBiz network. And according to the SmartBiz website, about 90% of loan applications submitted to lenders in their network get approved. 

If you’re not familiar, SBA loans (backed by the US Small Business Administration) are the gold standard in small business lending.

These loans typically come with longer repayment terms and incredibly low interest rates. 

As such, they’re a popular choice among small business owners.

With SmartBiz, you can get an SBA loan from $30,000 – $5 million. The repayment terms for an SBA loan fall in the 10 to 25-year range and interest rates start as low as 4.75%.

If you want an SBA-backed loan, SmartBiz is the place to get it. 

#5 – Kiva Review — The Best 0% Interest Loans

Kiva is a nonprofit organization with a mission to help raise capital for entrepreneurs across the globe. More than 2.5 million business owners have raised $1+ billion through this platform.

With Kiva, you can borrow up to $15,000 at 0% interest. That’s right; you can get an interest-free loan with Kiva and repay it up to 36 months.

What’s the catch? The loan process takes a bit longer than going through a traditional lender. Kiva is a mix between P2P lending and crowdfunding. The process involves getting your friends and family to loan you money as well, which isn’t ideal for everyone.

As you can see, it can take up for 45 days for you to get a loan. So if you’re strapped for cash and need money now, Kiva won’t be the best option for you.

But the lengthy process can definitely be worth the wait for 0% interest. 

#6 – Funding Circle Review — The Best For Long Term Loans

Lots of lenders force business owners to repay loans in 12-36 months. But Funding Circle offers term loans of up to 10 years. 

You can get loans from $20,000 to $5 million with Funding Circle. They offer low interest rates and no prepayment penalties. 

Here’s a look at some of the common reasons why small business owners seek a loan from Funding Circle:

Over the last decade, Funding Circle has helped 81,000+ businesses across 700+ industries raise more than $11.7 billion.

After answering a few simple questions about your business, you’ll be connected with a dedicated loan specialist in less than an hour. 

The eligibility requirements are a bit strict. You must be in business for at least three years and have $500,000+ in annual revenue. Your business can’t have any federal tax liens, and you need a FICO score above 680.

#7 – StreetShares Review — Best For Unsecured Business Loans

StreetShares is relatively new compared to some of the other lenders on our list. The company was founded with a mission of helping veteran-owned businesses. 

The platform offers secured loans like merchant cash advances, invoice factoring, equipment financing, and SBA loans. But for those of you who don’t want to put up any collateral to get a loan, you can get an unsecured small business loan with StreetShares as well.

More than 69,000 small businesses have used StreetShares to get a loan.

You can get pre-approved for a loan in just minutes by providing recent bank statements, your EIN, and SSN of the business owner. You’ll also need to disclose any outstanding debts and provide your most recent tax returns. 

StreetShares automatically deducts a fixed amount from your bank account on a weekly basis until the loan is repaid. 

There are no prepayment penalties, and it’s free to apply. 

#8 – BlueVine Review — The Best For Large Business Loans

BlueVine has lent over $3 billion to 25,000+ businesses. For those of you who need a significant amount of capital, BlueVine will be a top choice for you to consider. 

The application process is simple. By applying online, you can be approved in as quickly as five minutes. 

Here’s a quick glance at the type of small business funding solutions offered by BlueVine:

• Invoice factoring up to $5 million
• Lines of credit up to $250,000
• Term loans up to $250,000

BlueVine has dedicated advisors to walk you through the entire process. This ensures that your business will obtain the funding you need.

#9 – Rapid Finance Review — Best For Merchant Cash Advances

Rapid Finance is a simple and fast way to get a small business loan. You can get funded within hours of approval.

Over $2 billion has been lent to small businesses across a wide range of industries. Rapid Finance offers flexible payments with automatic deductions tailored to your specific needs.

Rapid Finance has a variety of financing options, including:

• Merchant cash advance
• Healthcare cash advance
• Bridge loans
• Line of credit
• SBA loans
• Invoice factoring
• Commercial real estate loans
• Asset based loans

You can use Rapid Finance to get a merchant cash advance up to $500,000 with funding as fast as 24 hours. $500,000 lines of credit and bridge loans are available with terms of 18 months. Invoice factoring is available with advances of up to $10 million.

#10 – Crest Capital Review — Best For Equipment Financing

Crest Capital is perfect for small business owners with specific needs. This lender provides equipment financing, vehicle financing, and software financing. 

By completing the simple online application process, you’ll get a decision within hours.

You can get a loan from Crest Capital for as low as $5,000 or as high as $500,000.If you’re seeking a loan for less than $250,000, you won’t even need to provide any financial statements. 

Applying for a loan with Crest Capital won’t affect your personal credit. 

The fixed-term loans available from this lender keeps your repayment process simple and straightforward. They won’t adjust your rates, force you to re-qualify the loan annually, or surprise you with hidden charges. 

When Does It Make Sense to Take Out a Small Business Loan?

You can get a business loan for virtually anything related to your business. 

But some loans have certain contingencies, like how you’re allowed to spend the money and how you document your purchases.

With others, you can only use the cash to purchase equipment. While others are specifically for your commercial mortgage. And even if you’re a solopreneur trying to fund your startup, there are loans specifically for getting your new business off the ground. 

From building maintenance to purchasing a new vehicle, expanding your operation, and everything in between, there are infinite reasons to apply for a small business loan. 

So if you need extra cash today, a small business loan makes sense.

However, you shouldn’t get a business loan if you don’t have a plan to repay what you borrow. And you should also have a business plan with financial projections before applying as well.

Even established organizations need to know exactly how (and when) the loan gets repaid. If you don’t have this figured out, getting a loan right now can leave you and your business in a financial world of hurt down the road.

The bottom line: Small business loans are an easy way to get cash quickly. So if you’re responsible with money and have a plan to pay back what you owe, you can safely consider taking out a small business loan.

Methodology For Choosing The Best Small Business Loan

There are certain factors that must be taken into consideration as you’re shopping around for the best small business loan. This is the methodology that we used to come up with the top options in this guide.

I’ll explain what matters in greater detail below so you can weigh these elements according to your personal needs.

Your Credit Score

Your credit score plays a major role in the types of loans you can (and should) apply for. If you have a good credit score, you can virtually apply for anything.

You’ll also get longer loan terms and lower interest rates.

As such, term loans, SBA loans, credit cards, lines of credit, and micro-loans are some of the most popular options for businesses with good credit.

On the other hand, bad credit can vastly limit the number and type of loans you qualify for. And you’ll have to deal with shorter repayment terms plus higher interest rates because you bring more risk.

In this case, secured loans with equipment, vehicles, land, or buildings as collateral may be your ticket to more affordable terms.

Qualifications

Make sure you check the eligibility requirements of a loan before applying. 

Most loans will require a minimum personal credit score and minimum annual revenue to be considered. Be prepared to show bank statements, tax returns, and other information to verify your business as you’re going through the application process. 

Repayment Terms

The first thing you should look at when you’re seeking a small business loan is the terms. How fast do you have to repay the loan?

Fast cash always sounds great. But if you can’t meet the repayment terms, you may need to seek an alternative solution—the repayment terms for loans on our list range anywhere from 12 months to 25 years. 

The shorter the term, the more you need to pay back every month so it’s an important consideration to think about.

Interest Rates

The longer the repayment terms, the more interest you’re going to have to pay. This is an inevitable part of getting a loan, but you can help yourself by choosing a business loan with interest rates on the lower end, especially if you’re choosing a long-term loan.

2% interest on a $10,000 loan paid out over three years isn’t going to add up to much. However, 2% on $5 million spread out over 25 years adds up to a lot of extra cash you’ll have to pay.

It’s also crucial to have a plan for paying back everything you owe, including added interest.

Loan Amount

How much money do you need?

Some lenders are better for smaller sums of cash, such as $5,000 or $10,000. Other lenders have loans that fall in the $500,000 to $5 million range.

And extra cash may sound nice, but it can get you in trouble if you’re unable to pay it all back. So, you should only apply for the amount you actually need. 

Type of Loan

What do you need the money for?

You could always get a general-purpose small business loan. But there are other options to consider for specific use cases.

For example, you can get an equipment loan to finance a new purchase. There are commercial real estate loans for buying property. Some lenders have loans for inventory, vehicles, working capital, and more.

Make sure you understand the specifications for certain loan types. For example, you can’t use a commercial real estate loan to purchase inventory or pay employees. 

So, it’s important to understand how you’re going to use the money and choose a loan the matches your needs.

You should also consider the different types of loans that are available. There are almost a dozen common loan types, including:

• Term loans
• Secured loans with an asset like a building or vehicle as collateral
• Unsecured loans with no collateral required
• Business credit cards
• Personal loans
• Cash advances
• Lines of credit
• Micro-loans
• SBA loans

Each type is better for different situations, so it’s crucial to think about which type is best for your needs.

Type of Lender

Some lenders will fund you directly. But the caveat is that you can’t be sure that you’re getting the best rate and loan terms.

Other platforms don’t directly offer financing. Instead, they act as a business loan marketplace. When you apply, you’ll get different offers from a wide range of direct lenders.

This option makes it easier for you to shop around but it may take more time to sort through your options and find the best deal.

Additional Fees

There are numerous different types of fees associated with obtaining a loan. Some of the most common include application fees, referral fees if you use a loan marketplace, processing fees, late payment penalties, and prepayment penalties if you pay too early.

However, there are dozens of other costs that may be associated with your loan, so it’s important to understand what those fees are before you make any decisions.

It may help to ask for an outline of everything you’ll owe before signing anything to ensure you know the true cost of getting your business loan.

Summary

What’s the best small business loan?

Lendio is our top overall recommendation. But with that said, there are plenty of other viable options to consider. 

Whether you’re looking for $5,000, $5 million, or anything in between, this guide has a small business loan for you. I made sure to include something for everyone on the list.