| Loan amounts | Up to $5,000,000 |
| Maximum interest rate for variable loans* |
|
| Maximum interest rate for fixed loans* |
|
| Term length | Up to 300 months |
| Minimum credit score | 680 (recommended) |
| Minimum time in business | 24 months (recommended) |
| Minimum annual revenue | Varies by lender |
* Some lenders may charge lower rates. Based on the current Prime rate of 8.50% + a rate maximum set by the SBA.
May require a personal guarantee
Collateral required for loans over $50,000
Longer turnaround time than online lenders
The U.S. Small Business Administration (SBA) partners with lenders nationwide to offer financing for businesses unable to qualify for traditional funding. Since the SBA reduces lender risk by guaranteeing up to 75% to 90% of the loan, lenders can offer lower rates and extended repayment terms. Maximum interest rates are based on the current prime rate of 8.5% plus a cap set by the SBA.
The SBA 7(a) loan is the most popular SBA loan since it covers a range of general expenses like working capital, inventory, payroll, equipment and more. You can also consider the SBA CDC/504 loan for major fixed assets or the SBA microloan for smaller purchases.
Read more about the SBA loan program.
| Loan amounts | $5,000 to $250,000 |
| Starting interest rate | 27.30% (for at least 5% of customers)* |
| Term length | 18 to 24 months |
| Minimum credit score | 625 |
| Minimum time in business | 12 months |
| Minimum annual revenue | $100,000 |
*Minimum APR offered to at least 5% of customers (not the lowest rate offered).
Fair to low credit accepted
Can help build business credit
Same-day funding available in certain states
Requires daily or weekly repayments
Not all industries are eligible
Funding not available in North Dakota
OnDeck is our top pick for a short-term business loan because you can borrow large amounts, even with a low minimum credit score and a short business history. Depending on your location, you may be able to access your funds the same day you’re approved. Additionally, you can build your business credit by making on-time payments with an OnDeck loan.
However, OnDeck’s rates tend to run high — with an average 55.8% APR for its term loan.
Read our OnDeck review.
| Loan amounts | $25,000 to $500,000 |
| Starting interest rate | 15.22% |
| Term length | 6 to 84 months |
| Minimum credit score | 660 |
| Minimum time in business | 24 months |
| Minimum annual revenue | $50,000 |
Fast funding
No hard credit check for most applicants
Low minimum revenue requirement
Higher credit score requirement compared to some lenders
Must be in operation for at least two years
Collateral and personal guarantee required
A long-term business loan from Funding Circle can provide between $25,000 and $500,000, helping you cover expenses like payroll services, inventory, equipment and more. With a streamlined application process, you can receive funds in as soon as two business days. Repayment terms go up to 84 months with no fees for repaying the debt early.
Funding Circle also offers business lines of credit with same-day financing and SBA 7(a) loans with a 13-day turnaround, which is faster than the industry’s average of 27 to 49 days.
Read our Funding Circle review.
| Loan amounts | $2,000 to $250,000 |
| Starting interest rate |
|
| Term length | 6 to 24 months |
| Minimum credit score | 660 |
| Minimum time in business | 12 months |
| Minimum annual revenue | $36,000 |
Quick application process
Only pay interest on what you use
No prepayment penalties
Requires a personal guarantee
Confusing fee structure
Must link bank account to determine eligibility
The American Express Business Line of Credit offers businesses access to revolving funds up to $250,000. With a business line of credit, you can borrow up to the credit limit as often as you like, only paying fees on the withdrawn amounts.
The streamlined application takes minutes to complete, requiring you to link your business bank account. If approved, you could receive funds within one to three business days.
| Loan amounts | $5,000 to $600,000 |
| Starting interest rate | 1.11 factor rate |
| Term length | 3 to 24 months |
| Minimum credit score | 500 |
| Minimum time in business | Six months |
| Minimum annual revenue | $180,000 |
Ideal for almost any type of short-term business need
Low minimum credit score requirement
Short time-in-business requirement
High annual revenue requirement
Charges a 2.50% origination fee
Most products provided by third-party partners
Credibly’s working capital loans can provide funding in less than 24 hours if you need cash to cover operating expenses or purchase inventory. With a minimum credit score of 500, Credibly may be willing to look past a checkered credit history if you have a healthy annual revenue.
In addition to working capital loans and merchant cash advances, Credibly partners with lenders offering merchant cash advances, business lines of credit, equipment financing, SBA loans, invoice factoring and other loans to help your business get the funding it needs.
Read our Credibly review.
| Loan amounts | $500 to $2,000,000 |
| Starting interest rate | 4.99% |
| Term length | 12 to 84 months |
| Minimum credit score | 550 |
| Minimum time in business | Not required |
| Minimum annual revenue | No specific minimum |
Offers 100% financing with no down payment
Startup friendly — no minimum time in business requirement
No prepayment penalties
Equipment financing rates can go as high as 28.00%
Includes a documentation fee
Stricter criteria for equipment refinancing
Taycor Financial offers equipment loans up to $2,000,000 with extended repayment terms and no prepayment penalties. Since the equipment acts as collateral to secure the loan, all business types are encouraged to apply — including startups or low-revenue companies. Additionally, Taycor Financial’s low minimum required credit score of 550 makes it a great option if you’re looking for equipment loans with bad credit.
You can also consider other funding solutions with Taycor Financial, including business lines of credit, commercial bridge loans and term loans.
Read our Taycor Financial review.
| Loan amounts | $10,000 to $15,000,000 |
| Starting interest rate | Varies by product |
| Term length | Up to 300 months |
| Minimum credit score | 680 for unsecured line of credit (not disclosed for other products) |
| Minimum time in business | 24 months for unsecured line of credit (not disclosed for other products) |
| Minimum annual revenue | $2 million for Prime Line secured line of credit (not disclosed for other products) |
Offers a range of business products and services
Automatic enrollment in free rewards program
No collateral required for unsecured line of credit
High annual fees for unsecured line of credit
Personal guarantee required for some products
Must be in business for two years to qualify for most loans
With close to 7,000 physical branches throughout the U.S., Wells Fargo could be a good option for business owners wanting a traditional brick-and-mortar bank experience. Wells Fargo offers unsecured and secured lines of credit, SBA loans, healthcare practice loans, business bank accounts and business credit card rewards.
While bank business loans generally have lower interest rates than online lenders, it can take up to two weeks to process and fund a Wells Fargo business line of credit. Traditional banks also typically require a good credit score and at least two years in business, although the Wells Fargo Small Business Advantage line of credit is designed for businesses that have been operating for less than two years.
Read our Wells Fargo review.
| Loan amounts | Up to $150,000 |
| Starting interest rate |
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| Term length | 3 or 12 months |
| Minimum credit score | 600 |
| Minimum time in business | Six months |
| Minimum annual revenue | $100,000 |
Ideal for recently-established businesses
Unlock more discounts with Fundbox Plus
Available to businesses in all U.S. states
Only offers a business line of credit
Doesn’t fund all industries
Short repayment terms
If you need a quick startup business loan, Fundbox offers up to $150,000 with its business line of credit. New companies can qualify after six months of operation and at least $100,000 in annual revenue. Withdraw funds up to your credit limit as often as needed, only paying interest on the amount you use. If approved, funds could hit your bank account as soon as the next business day.
You can unlock additional benefits, including up to 20% off fees, by upgrading to Fundbox Plus. However, Fundbox doesn’t lend to all industries, such as adult entertainment and services, online gaming and gambling, and nonprofit organizations.
Read our Fundbox review.
| Loan amounts | $5,000 to $1,500,000 |
| Starting interest rate | 1.10 factor rate |
| Term length | Up to 18 months |
| Minimum credit score | 570 |
| Minimum time in business | Six months |
| Minimum annual revenue | $180,000 |
Low minimum credit score requirement
Early payoff discount
Fast funding time
Doesn’t help build business credit
High monthly revenue needed to qualify
Factor rate makes it difficult to compare loan costs
If you need a loan but have bad credit, Fora Financial considers borrowers with credit scores as low as 570 with no collateral required. Your business could access funds up to $1,500,000 that can be used for almost any type of business expense.
To qualify, your business must generate at least $15,000 a month in revenue. You can expect to receive your funds within 24 to 72 hours after approval. In addition to term loans, Fora Financial offers revenue advances where payback is based on a percentage of your daily or weekly receipts.
Read our Fora Financial review.
| Loan amounts | $5,000 to $500,000 |
| Starting interest rate | 1.11 factor rate |
| Term length | 4 to 60 months |
| Minimum credit score | 600 |
| Minimum time in business | Six months |
| Minimum annual revenue | $250,000 |
Funding as soon as 24 hours
Early payoff discount
No down payment or collateral needed
High annual revenue needed to qualify
Factor rate makes it hard to compare other lenders
Only two products available, despite misleading website marketing
If you need fast access to capital, National Funding provides quick business loans with an approximate 24-hour turnaround. Its term loan provides up to $500,000 with no collateral required. Even better, you can get a discount for paying off your loan early. National Funding also offers equipment financing and leasing from $3,000 to $150,000.
The company also has a Guaranteed Lowest Payment program, but it only applies if you find a better rate with the exact same terms and conditions and without contingencies.
Just keep in mind you need to earn at least $250,000 a year to qualify for financing with National Funding.
Read our National Funding review.
| Loan amounts | Up to $50,000 |
| Starting interest rate | Not disclosed |
| Term length | 12 to 24 months |
| Minimum credit score | Not disclosed |
| Minimum time in business | 12 months |
| Minimum annual revenue | $50,000 |
No collateral required
Short time-in-business requirement
No monthly or annual service fees
Unsecured loans generally have higher interest rates
Weekly payments may be required
Not available in all states
If you’re strapped for cash and can’t provide collateral, consider an unsecured business loan with Headway Capital. You can borrow up to $50,000 with a flexible line of credit for expenses like payroll, inventory, marketing or covering seasonal dips in income. If you need access to more funds, Headway Capital also offers secured business financing with credit limits up to $100,000.
Headway Capital uses a holistic approach to evaluate your loan application, considering factors beyond your credit score. However, you need an annual revenue of at least $50,000 to qualify.
Read our Headway Capital review.
| Loan amounts | Up to $30,000,000 |
| Invoice factoring rates | 0.90% to 2.50% factor rate every 30 days (discount rate) |
| Minimum credit score | Not needed |
| Minimum time in business | 12 months |
| Minimum annual revenue | $120,000 |
Provides non-recourse invoice factoring — meaning you’re not responsible for the debt if customers don’t pay
Offers same-day funding
High funding limits
Can be hard to compare factoring costs with other types of business loans
Slightly higher fees than recourse factoring
High annual revenue needed to qualify
If you have significant capital tied up in unpaid invoices, eCapital provides up to $30,000,000 with fast invoice factoring. You can receive a cash advance for 80% to 90% of your outstanding invoices while eCapital collects customer payments on your behalf. eCapital will then take its factor rate (discount rate), and send you the remaining amount.
eCapital provides what’s called non-recourse invoice factoring, which allows you to keep the advance even if your customers fail to pay. Since this involves a slightly higher risk for the lender, non-recourse factoring typically costs more.
Read more about eCapital.
| Loan amounts | $5,000 to $250,000 |
| Starting interest rate | 8.49% |
| Term length | 12 to 60 months |
| Minimum credit score | Not disclosed |
| Minimum time in business | 12 months |
| Minimum annual revenue | $50,000 |
Offers business coaching and mentorship
Fixed monthly payments
Over 90% of clients are women, people of color or low-income business owners
Not available in all states
Doesn’t list minimum credit score requirements
The Accion Opportunity Fund (AOF) is a nonprofit organization focused on helping diverse business owners get the resources and funding they need for their companies to succeed. With funds ranging from $5,000 to $250,000, AOF can be a great choice for minority entrepreneurs and those looking for small business loans for women.
AOF also offers microloans for immigrant-owned businesses, as well as grants for Black small business owners. Entrepreneurs can take advantage of AOF’s extra resources and support in English and Spanish.
Read more about the Accion Opportunity Fund.
25+ years in business. 110+ million Americans served. $260+ billion in funded loans.
Instead of sharing information with multiple lenders, fill out one simple, secure form in five minutes or less.
We’ll match you with up to five lenders from our network of 300+ lenders who will call to compete for your business.
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Small business loans help new and established companies access capital for various business needs. With business financing, you can purchase inventory, invest in new equipment, build an expansion or cover emergency expenses.
Traditional banks, credit unions, online lenders and government agencies all offer small business loans.
The best business loan for your company depends on how much you need, your business’s qualifications and how quickly you need the funds.
Business term loans provide a lump sum of cash upfront, paid with interest in fixed weekly or monthly installments.
Short-term business loans have repayment terms around 3 to 24 months and are commonly available from online lenders.
Long-term business loans, usually offered by traditional banks, can last 10 years or more.
Similar to a credit card, a small business line of credit allows you to borrow up to your credit limit as often as needed.
You typically only pay interest on the amounts you borrow, although some lenders charge additional maintenance or withdrawal fees.
Lines of credit are best for recurring expenses like rent, inventory purchases or seasonal fluctuations in income..
equipment financing can help you purchase or repair heavy machinery, computers, vehicles or other equipment needed to operate the business.
The equipment usually acts as collateral to secure the loan, meaning the lender can seize it if you fail to make payments. Because of this, equipment loans typically have more lenient eligibility requirements.
Commercial loans provide funds specifically for equipment or property for business uses.
Commercial real estate loans are similar to a home mortgage, but often require a higher upfront down payment.
Like equipment loans, the property you’re purchasing can serve as collateral to secure the debt.
SBA loans are guaranteed by the U.S. Small Business Administration (SBA), offering long repayment terms with capped interest rates.
The SBA 7(a) loan provides up to $5 million for various business purposes, while the SBA 504/CDC loan is more commonly used for purchasing equipment or real estate.
You’ll apply with a bank or online lender, not directly through the SBA.
Microloans are loans for $50,000 or less. The SBA offers microloans, along with several nonprofit or community organizations.
Microloans are often geared toward startups or underrepresented business owners, such as women or people of color.
Working capital loan is an umbrella term for financing that covers short-term operating expenses, like payroll or cash flow gaps.
Working capital loans come in various forms, like working capital lines of credit, term loans and cash advances.
There are additional government-backed small business loans worth considering besides SBA loans.
If you operate a business in a rural area (50,000 or fewer residents), you might be eligible for a loan guaranteed by the U.S. Department of Agriculture (USDA), such as the popular Business & Industry (B&I) Loan Program.
The Farm Service Agency (FSA) also offers low-cost financing to help farmers start and expand their farm businesses.
American Indian and Alaska Native business owners can consider federally backed financing from the Indian Loan Guarantee and Insurance Program (ILGP).
A merchant cash advance (MCA) gives you a lump sum of cash upfront against your future sales. You repay the merchant cash advance through a percentage of daily or weekly credit card sales.
While this type of funding can deliver cash fast, it tends to be a more costly way to borrow money for your company.
Invoice factoring allows businesses to sell unpaid invoices to a factoring company in exchange for a cash advance.
This can be a good option for cash-strapped businesses or those with poor or limited credit, but you can typically get only 70% to 90% of your invoice face value.
Invoice factoring can also get expensive, with factoring rates going as high as 8.25%.
Business credit cards can help track business expenses and unlock cash back or travel rewards while monitoring employee spending.
To avoid paying a high annual percentage rate, pay off your credit card statement balance in full by the due date.
Federal government agencies, state governments, private corporations and foundations offer grants for small businesses.
You can narrow your search based on business type, location and demographics, such as minority business grants and business grants for women
Because grants provide free money that typically doesn’t need to be repaid, competition can be stiff.
Business crowdfunding is when you ask family, friends and the general public for donations to kickstart your business.
This method can help you test out a business idea and generally appeals to startups or businesses struggling to get funding.
Just be aware that some crowdfunding platforms deduct a fee before your total donations.
Peer-to-peer lending, or P2P lending, is a type of financing where individual and commercial investors provide the loan funds rather than a financial institution.
A P2P online platform acts as the coordinator between you and the investors, helping process and finalize your loan details.
While P2P loans typically have more lenient qualifying requirements, they can take longer to fund than other types of financing. Additionally, P2P lending might not be available in your state.
Personal loans for business may be easier to get if you struggle to meet the strict eligibility criteria for a business loan.
However, this type of financing relies on your personal credit and income, putting your personal credit and assets at risk.
And personal loans won’t help you build business credit, nor can you claim the loan interest as a qualified business tax deduction.
Bootstrap financing is when you use your own financial resources to fund your business.
Startup businesses may use bootstrapping to get off the ground, but you risk not recouping your investment if your business fails to thrive.
When you apply for a business loan, lenders want to know that your business and credit history are stable. Here are some common business loan requirements you may need to meet to get approved for small business financing:
TIME IN BUSINESS
In general, your business will be in a stronger position to borrow if you can prove you have a track record of solid revenue over the past one to two years. This is more attractive to a lender than a company with spotty revenue over the past six months.
CREDIT SCORE
Lenders use your credit score to determine your riskiness as a borrower. In most cases, you’ll need a good to excellent credit score in the mid-600s or higher to get a business loan, although certain lenders allow scores as low as 500. Your business credit score should be at least 80, although some lenders may rely on just your personal score when reviewing your loan application.
CASH FLOW
A business cash-flow projection shows when money is collected, when cash goes out and what’s left. Lenders typically like to see that you understand where your business’s money is going each month.
COLLATERAL
Collateral is an asset that lenders can legally seize if you can’t make payments. Common forms of collateral include real estate, equipment, money owed to your company (accounts receivable) and even cash. Some business owners use their personal assets — including their homes — as collateral on a business loan.
FIXED CHARGE COVERAGE RATIO
Your business’s fixed-charge coverage ratio measures how well your company can pay its fixed expenses, including any debts and interest you have. Lenders use this metric to help determine whether or not to approve a business loan application.
WORKING CAPITAL
Your working capital refers to the available money you have to fund your company’s day-to-day operations. You can calculate your working capital by subtracting the business’s debt liabilities due within a year from current assets that you can convert to cash.
Business owners can take out small business loans — anywhere between $500 and $15.5 million — to finance expenses like payroll financing, inventory, equipment and other costs. Repayment terms could be as short as three months or as long as 25 years. Both traditional financial institutions and alternative online lenders offer small business loans.
Yes, bad credit business loans are available for business owners with personal credit scores as low as 500. However, these loans tend to come with higher interest rates and less flexible repayment terms.
A personal guarantee requires you as the business owner to be personally responsible for the company’s debt in case of default. A personal guarantee is fairly common on small business loans because it lowers the risk for a lender. But as the business owner, it may limit any protections your business structure offers.
Online lenders may be the best option to get a startup business loan with no money. Unlike brick-and-mortar banks that often have stricter eligibility requirements, some alternative lenders will work with you after about six months in business. If you can’t find a suitable lender providing business loans for new businesses, you can consider alternative options like crowdsourcing, self-funding or grant funding.
Each lender will have its own criteria based on the loan type. In general, you need a personal FICO Score of at least 500 and a business credit score of 80 to get a small business loan. But the lowest business loan interest rates are typically reserved for borrowers with higher credit scores. You can check and monitor your credit score for free with LendingTree Spring.
Most lenders look for minimum monthly or annual revenue when you apply for a loan. It’s common to expect a minimum annual revenue requirement of $50,000 or more for unsecured loans. However, you may be eligible for a business loan with a lower annual revenue if you can provide collateral.
If you were rejected for a business loan, revisit the reason why. Focus on improving your personal credit and business credit scores. If you haven’t operated in business long enough, wait a bit. In the meantime, consider a small business credit card or a personal loan to access capital for any immediate business needs.
