Up to $250,000
7.80%
Up to 12 months
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, 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
Ratings and reviews are from real consumers who have used the lending partner’s services.
Ratings and reviews are from real consumers who have used the lending partner’s services.
$5,000 to $1,500,000
1.13 factor rate
4 to 18 months
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, 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
Ratings and reviews are from real consumers who have used the lending partner’s services.
Ratings and reviews are from real consumers who have used the lending partner’s services.
Up to $150,000
4.66% for 12-week terms8.99% for 24-week terms
12 or 24 weeks
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 three months in business, making this our top choice for startup companies.
You can use a Fundbox line of credit to access up to $150,000, which will allow you to cover any small business startup costs. However, repayment terms only last 12 to 24 weeks 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
Ratings and reviews are from real consumers who have used the lending partner’s services.
Ratings and reviews are from real consumers who have used the lending partner’s services.
$500 to $5,000,000
7.99%
12 to 84 months
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: 600
Minimum time in business: None
Minimum annual revenue: None
Ratings and reviews are from real consumers who have used the lending partner’s services.
Ratings and reviews are from real consumers who have used the lending partner’s services.
$5,000 to $250,000
31.30% Minimum APR offered to at least 5% of customers (not the lowest rate offered)
Up to 24 months
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 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
$25,000 to $500,000
7.49%
6 to 84 months
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 84 months 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: 2 years
Minimum annual revenue: $50,000
Ratings and reviews are from real consumers who have used the lending partner’s services.
Ratings and reviews are from real consumers who have used the lending partner’s services.
$2,000 to $2,000,000
Not disclosed
2 to 24 months
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. 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
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.
| Pros | Cons |
|---|---|
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 | 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 |
Here are five steps to help you get a small business loan with a private lender.
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.
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:
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.
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:
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.
