Best Private Business Loans in November 2025
Private loans are typically easier to qualify for than traditional business loans — but interest rates and fees can be higher.
| Lender | Starting rate | Amount | Term | Time in business | |
|---|---|---|---|---|---|
|
7.80% | $1k – $250k | Up to 12 months | 12 months | |
|
13.00% | $5k – $1.5M | Up to 18 months | 6 months | |
|
4.66% | Up to $250k | 3 – 12 months | 3 months | |
|
4.99% | $500 – $2M | 12 – 84 months | None | |
|
32.72% | $5k – $250k | Up to 24 months | 12 months | |
|
22.45% | $25k – $500k | 6 – 60 months | 24 months | |
|
Not specified (Factor rate starting at 1.20) | $2k – $2M | 2 – 24 months | 3 months |
Best private business lenders: More details
Best for: Covering ongoing expenses – Bluevine
- Only pay interest on what you borrow
- No maintenance fees or prepayment penalties
- Funds available in as little as few hours if you have a Bluevine Checking account
- Same-day funding may incur a fee
- Not available for businesses in Nevada, North Dakota or South Dakota
- Higher credit score, time in business and annual revenue required to qualify for some payment plans
If you’re looking for a flexible form of financing to cover day-to-day operational expenses, Bluevine’s business line of credit might be a good option. With speedy funding times and credit lines up to $250,000.00, you can quickly access funds for hiring staff, outsourcing payroll services, purchasing materials or renovating your office. Interest is charged only on what you borrow, and there are no maintenance fees or prepayment penalties.
However, Bluevine’s repayment terms are on the short side, and borrowers will need to meet stricter credit score, time in business and annual revenue requirements to qualify for monthly payments; otherwise, weekly payments will be required. It’s also worth noting that businesses in Nevada, North Dakota, South Dakota and certain U.S. territories will not be eligible.
In order to qualify, you’ll need to meet Bluevine’s criteria of:
- Minimum credit score: 625
- Minimum time in business: 12 months
- Minimum annual revenue: $120,000
Best for: Bad credit borrowers – Fora Financial
- Low minimum credit score
- Potential for early payoff discounts
- Option to borrow more after repaying 60% of the original loan
- High annual revenue requirement
- Charges an origination fee of 3.00%
- Factor rate makes it difficult to compare with other loan options
With the lowest minimum credit score on this list, Fora Financial is our top pick for a bad credit business loan. Loan amounts go as high as $1,500,000.00, allowing you to tackle a wide range of working capital expenses like buying equipment, maintaining cash flow, stocking up on inventory and more.
However, you’ll need to generate quite a bit of revenue to qualify. It’s also important to note that Fora Financial charges a factor rate for its loan products, which can make it harder to compare the cost of borrowing against other lenders.
In order to qualify, you’ll need to meet Fora Financial’s criteria of:
- Minimum credit score: 570
- Minimum time in business: 6 months
- Minimum annual revenue: $240,000
Best for: Startup companies – Fundbox
- Low time in business and annual revenue requirements
- No prepayment penalties
- Next-day funding available
- Relatively short repayment terms
- Requires weekly loan payments
- Lower borrowing limits than other lenders on this list
Unlike other lenders, who may require businesses to be in operation for six to 12 or more months, Fundbox is willing to lend to businesses after just 3 months use a Fundbox line of credit to access up to $250,000.00, which will allow you to cover any small business startup costs. However, repayment terms only last 3 to 12 and weekly loan payments are required, which means you will need to closely examine your business budget to avoid borrowing more than you can afford to repay.
In order to qualify, you’ll need to meet Fundbox’s criteria of:
- Minimum credit score: 600
- Minimum time in business: 3 months
- Minimum annual revenue: $30,000
Best for: Financing equipment – Taycor Financial
- Offers 100% equipment financing with no down payment required
- No minimum revenue requirements for equipment financing
- Lengthy repayment terms give you up to seven years to repay your debt
- Charges a documentation fee
- May require a personal guarantee
- Stricter eligibility criteria for equipment refinancing options
Taycor Financial can help new and established businesses cover equipment costs with no down payment required, making this our top pick for financing essential equipment. The equipment itself serves as collateral for the loan, which may make it easier for businesses to qualify than for other types of loans.
Business owners can typically receive their funds within four to 24 hours after approval. Taycor Financial offers several repayment options, including monthly, quarterly, seasonal and semi-annual payments. However, a personal guarantee may be required, which could put your personal assets at risk.
In order to qualify, you’ll need to meet Taycor Financial’s criteria of:
- Minimum credit score: 550
- Minimum time in business: None
- Minimum annual revenue: None
Best for: Fast funding – OnDeck
- Transparent about rules and restrictions on same-day funding
- Potential prepayment and loyalty discounts
- Can help build business credit
- Requires daily or weekly payments
- Doesn’t disclose starting interest rates
- Funding not available in North Dakota
Though many alternative lenders advertise fast funding, most are vague about the rules and restrictions that may apply. By comparison, OnDeck is very transparent about its funding timelines, offering same-day funding for loans under $100,000 if checkout is completed by 10:30 a.m. on a normal business day. Otherwise, funds will be deposited within two to three days.
With OnDeck, you may be able to borrow up to $250,000.00 to put toward a wide range of business expenses, including inventory, payroll, marketing and more. However, you’ll need to make daily or weekly payments on your loan and, because OnDeck does not publicly disclose its starting rates, you may need to apply to compare this against other loan offers.
In order to qualify, you’ll need to meet OnDeck’s criteria of:
- Minimum credit score: 625
- Minimum time in business: 12 months
- Minimum annual revenue: $100,000
Best for: Financing large purchases – iBusiness Funding
- Lower rates than many alternative lenders
- Lengthy loan terms give borrowers up to 60 to repay their debt
- No application fees or prepayment penalties
- Funding may take up to four business days
- May require collateral, personal guarantee and/or a blanket lien
- Businesses must be in operation for a minimum of 24 months to qualify
If you’re looking for a business loan to finance a large purchase, you may want to consider lenders that give you more time to repay your debt. Though many online lenders offer short-term loans with high interest rates, iBusiness Funding offers loan terms as long as 60 with lower starting rates than many of its competitors.
However, in exchange for favorable rates and flexible terms, funding times are slightly slower than other lenders, with most borrowers receiving their funds in two to four business days. Loans from iBusiness Funding may also require collateral, a personal guarantee and/or a blanket lien to secure.
In order to qualify, you’ll need to meet iBusiness Funding’s criteria of:
- Minimum credit score: 640
- Minimum time in business: 24 months
- Minimum annual revenue: $50,000
Best for: Businesses with variable income – Reliant Funding
- Flexible payments fluctuate with your revenue
- Funding available in as little as 24 hours
- Option to borrow more after repaying 50% of the original advance
- Requires daily or weekly payments
- Charges an origination fee
- May be more expensive than other business loan types
If your business revenue fluctuates throughout the year, it may be a good idea to consider alternative financing options with flexible repayment terms that will put less of a strain on your budget. Reliant Funding offers merchant cash advances (MCAs) up to $2,000,000.00. And while some MCA lenders require businesses to generate a significant amount of revenue to qualify, Reliant Funding ‘s annual revenue requirement is relatively low at $60,000.
Unlike a traditional business loan, MCAs are repaid through a percentage of your daily or weekly sales, meaning the size of your payments will fluctuate alongside your income. However, MCAs tend to be an expensive way to borrow money, so although the payments may be more manageable, you might end up paying more in interest over time.
In order to qualify, you’ll need to meet Reliant Funding ’s criteria of:
- Minimum credit score: 500
- Minimum time in business: 3 months
- Minimum annual revenue: $60,000
What is a private business loan?
A private business loan is a type of small business loan provided by online lenders instead of traditional banks or financial institutions. While eligibility requirements vary by lender and loan type, private loans are typically easier to qualify for than traditional business loans.
Alternative lenders often utilize a streamlined application process to review documents quickly, with funds usually disbursed within one to three business days after approval.
However, private business loans tend to charge higher interest rates with shorter repayment terms.
Types of private business financing
Private lenders offer many types of small business loans to help you start, grow or expand your business.
Term loans
With a term loan, the lender provides a lump sum that the borrower repays over time with interest. Additional fees, like loan origination fees and prepayment penalties, may apply. Funds can be used to cover any business-related expense.
A short-term business loan is ideal for immediate, low-cost expenses, while a long-term business loan can help cover larger expenditures.
Lines of credit
Unlike a lump-sum loan, a business line of credit is a revolving credit line that the borrower draws on to borrow on an as-needed basis — similar to a credit card.
The credit line gets replenished as you make payments on your balance. With this type of business financing, you only pay interest on the amount that you borrow, although some lenders charge maintenance fees regardless of use.
Equipment loan
Equipment financing allows you to purchase equipment that’s essential to running your business. It can include everything from computers to refrigerators to commercial-grade appliances. Interest rates are typically on the lower side because the equipment is used as collateral to secure the loan.
Invoice factoring
Invoice factoring involves selling unpaid invoices to a factoring company in exchange for a cash advance. The factoring company then collects your customers’ outstanding payments on your behalf, taking a cut of each invoice before paying you the remaining amount. This setup is typically used by business-to-business (B2B) companies.
Merchant cash advance
With a merchant cash advance, the business owner trades a portion of future earnings for lump-sum funding today. The lender is usually repaid by taking a daily or weekly percentage of the business’s credit card sales.
Pros and cons of private business loans
Pros
- Generally easier to obtain than traditional lending options
- Applications typically require less documentation than traditional loans
- Funding is usually available within one to three business days
Cons
- Interest rates and fees tend to be higher than traditional bank loans
- May not help you build your business credit score
- Online-only lenders don’t offer in-person support
Private business loan uses
A private business loan can be used for a range of business expenses, such as the following:
Inventory: Purchase essential supplies your business needs to fulfill customer orders. A restaurant, pizza shop or coffee shop, for example, will likely need cups, napkins, tablecloths and more.
Equipment and machinery: Anything from a dishwasher for a restaurant to medical equipment for a doctor’s office can be covered by private business loans.
Cash-flow gaps: Maybe your business is running low on cash waiting on outstanding invoices to be paid. Others may go through a seasonal slump where revenue is down. Private funding can help cover these kinds of cash-flow gaps.
Working capital and operational expenses: Some small businesses may need help with operational expenses like paying rent or covering payroll. A private business loan can provide working capital that can be put toward regular operating costs.
Marketing: This is an essential part of building brand awareness and attracting and retaining customers. Business owners who haven’t carved out a marketing budget can use private funding to get the job done.
Business expansion and growth: Aside from day-to-day operating expenses, many business owners have long-term goals for growth and expansion. That may include opening a new location or investing in a new business direction. A private business loan can provide the necessary funding.
How to get a private business loan
Here are five steps to help you get a small business loan with a private lender.
1. Calculate how much you need
Creating a business budget can help you define your most crucial business expenses. While private business loans can help with seasonal dips in income or allow you to invest in essential equipment, you want to avoid taking on too much debt. When in doubt, start off small to ensure you can keep up with the repayment schedule.
As we’ve covered, private business loans have a few advantages. Most notably, loans from private lenders are often easier to qualify for than loans from a traditional bank. However, these loans tend to come with high interest rates and additional fees, which increase the total cost of borrowing.
If your needs aren’t urgent, you might be better off waiting until you can qualify for a loan from a traditional lender. But if you can’t afford to wait for more affordable financing options, a private business loan could be a good choice, providing the funds you need in just a few business days.
2. Review eligibility requirements
While criteria will vary by lender and loan type, here are some common business loan requirements you will likely need to meet when applying with a private lender:
-
Your credit score
Minimum FICO Score requirements generally range from 500 to 640 or higher. Lenders may also review your business credit history when determining your level of creditworthiness. The higher your credit score, the more likely you’ll secure a low interest rate with flexible terms. -
Time in business
Some private lenders, such as iBusiness Funding, require businesses to be in operation for a minimum of 24 months to qualify. But many have more lenient requirements, making it easier for younger companies to secure financing. In general, your business will need to operate for at least three to six months to get a loan. -
Business revenue
Most private lenders require a certain cash flow to qualify for small business financing. Annual revenue requirements range from $30,000 to $240,000. Some lenders, like Taycor Financial, don’t have any annual revenue requirements, making it an ideal choice for startups. -
Collateral and/or personal guarantee
Depending on the lender and loan type, you may also be required to provide a personal guarantee or pledge collateral, like fixed or financial assets. Alternatively, you could look for an unsecured business loan with no collateral required.
3. Research private business lenders
If you’ve decided to pursue a private business loan, it’s worth spending some extra time researching your options to find the best one for your business. Pay attention to extra service fees as these can significantly increase your loan’s overall costs. Also, make sure the lender reports payments to the major credit bureaus if you need to build your business credit.
Check out our guide to small-business lender reviews before applying to fully understand what each lender offers.
4. Gather required documents
Unlike traditional lenders, which may require you to submit a long list of documents alongside your loan application, private business lenders tend to require minimal paperwork for approval. This is one of the reasons why private lenders are able to process applications quickly.
Still, private lenders typically require some proof that you’ll be able to repay the loan, so some documentation will still be required. Private lenders should have a list of required documents on their website. If not, you can contact them directly for more guidance.
Here’s a general list of what you may need to provide:
- A business plan
- Personal and business tax returns
- Business bank statements
- Collateral information, if applicable
5. Submit and review offers
While some traditional banks and credit unions require in-person appointments to finalize loan details, private business loan applications can be completed entirely online. Sometimes, a funding specialist will reach out to discuss loan options or to request additional information.
Since private lenders often utilize advanced underwriting software, it’s common to get a funding decision within minutes. Make sure to review your business loan agreement before signing on the dotted line to ensure you understand the rates, repayment term and additional fees.
How to compare private business loans
Picking the best private business loan can be tough, especially if you qualify for multiple offers. Compare the following data points to find the most ideal option for your unique situation.
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Interest rate
Business loan interest rates vary by lender and loan type. Some private lenders charge a factor rate for their products and services, while others may advertise simple interest or annual percentage rates. To understand and compare the cost of borrowing between lenders, it’s helpful to convert factor rates to interest rates. -
Repayment term
Loan terms and repayment schedules vary widely between private lenders. While a longer repayment term will give you more time to pay back your debt, it will also mean paying more in interest over the lifetime of the loan. Meanwhile, short-term loans may allow you to save on interest costs, but they often require daily or weekly payments. Be sure to weigh your options carefully to avoid putting a strain on your budget. -
Time to fund
Thanks to advanced technology, most private lenders are able to provide quick business loans, with funds being available within one to three business days after approval. However, speedy financing comes at a price — typically meaning higher interest rates and shorter repayment terms. -
Additional fees
Private lenders often charge additional fees, including origination fees, service fees, late charges and prepayment penalties. Be sure to closely examine your loan agreement before signing, as these fees are often listed in fine print. -
Collateral requirements
Some lenders require specific assets be used as collateral to secure the loan. Others may ask for a blanket lien, which is typically a lien against all of your business’s assets. Make sure you understand the loan’s collateral requirements before you accept the loan terms.
Alternatives to private business loans
Private business loans can cater to a diverse range of business owners, helping you get funding for your most important needs. However, private lenders aren’t a perfect fit for everyone. Here are some alternative small business funding options to consider.
Traditional bank loans
Working with a traditional bank has many advantages, such as accessing a variety of products and services like business bank accounts and commercial real estate loans. Depending on where you live, you might be able to visit a physical branch for in-person support and business coaching.
However, traditional financing usually comes with stricter eligibility requirements, such as a minimum of up to two years in business and higher credit score requirements.
Credit union loans
If you’re a member of a credit union, it’s worth inquiring about credit union business loans. The advantages of credit unions include large business loans with reduced fees and lower rates.
Similar to traditional bank loans, these loans typically have strict financial requirements. You will also need to meet the credit union’s specific criteria, such as joining a business membership program or living within a certain area.
Small business grants
Small business grants are another option to help fund your company — with money that doesn’t have to be repaid. You can find grants through local and nationwide government and nonprofit organizations, as well as private corporations.
While researching and applying for grants takes time and effort, it can be worth it to receive free money for your business.
Business credit cards
Business credit cards are usually easier to qualify for than traditional business financing and can be used for day-to-day or low-cost expenses. You can even earn generous sign-up bonuses and business travel rewards along the way.
If comparing business credit cards with business lines of credit, note that credit cards typically charge significantly higher interest rates. This doesn’t have to be a dealbreaker but you should make an effort to pay your balance in full to avoid exorbitant fees.
Crowdfunding
Crowdfunding platforms can help you raise money for specific business projects or goals by asking people in your network for donations.
While these platforms will likely take a small fee from your donations, you don’t have to pay anything upfront to use these services. Crowdfunding works best for companies with a robust online presence or following, especially if you’re able to offer a free or discounted product or service as an incentive.
Our methodology: How we chose the best private business loans
We reviewed a wide range of leading private lenders for business loans to determine the overall best private business loans. To make our list, lenders had to meet the following criteria:
- Eligibility requirements: Because private lenders tend to work with businesses who fail to qualify for loans through traditional lenders, we prioritized private lenders with options for startups, low-revenue businesses and bad credit borrowers.
- Loan amounts: We looked for lenders offering a wide range of funding amounts, with maximum limits as high as $5 million.
- Rates and terms: We prioritized lenders with competitive rates, limited fees and flexible repayment terms.
- Repayment experience: We considered each lender’s reputation and overall business practices, favoring lenders that report to all major credit bureaus, offer reliable customer service and provide customer perks, like free business classes, bonus rewards and early payoff discounts.