Up to $250,000
7.80%
6 or 12 months
Business owners looking for on-demand access to capital can consider Bluevine’s business line of credit. With speedy funding times and credit lines of up to $250,000, you can use funds for hiring staff, outsourcing payroll services, purchasing materials, renovating your office and more. Interest is charged only on amounts withdrawn — with no maintenance fees or prepayment penalties.
Although Bluevine has a low credit score requirement, companies need a one-year business history and at least $120,000 in annual revenue to qualify. Note that businesses in Nevada, North Dakota and South Dakota will not be eligible to borrow from this lender.
Read our full Bluevine review.
In order to qualify, you’ll need to meet Bluevine’s criteria of:
$5,000 to $1,500,000
1.15 Factor rates start at 1.15, but can go as low as 1.10 with early payback provisions
4 to 18 months
Fora Financial is one of our top picks for a bad credit business loan with a low minimum credit score of 570 and only six months’ time in business required. Loans go as high as $1,500,000, allowing you to tackle a range of working capital expenses like buying equipment, maintaining cash flow, stocking up on inventory, opening a restaurant and more.
While Fora Financial doesn’t require collateral, it does charge a high origination fee. Plus, the company reserves the right to file a UCC lien against your business assets.
Read our full Fora Financial review.
In order to qualify, you’ll need to meet Fora Financial’s criteria of:
Up to $150,000
4.66% to 8.99%
4.66% for 12-week terms
8.99% for 24-week terms
3 or 6 months
Newly established businesses often struggle to get traditional financing since most banks require you to have at least two years in business to qualify. However, Fundbox provides startup financing. It only asks for companies to have three months in business and a credit score of at least 600.
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. But, be aware that the company only offers short repayment terms. Additionally, businesses need a minimum of $30,000 in annual revenue to be considered for this line of credit.
Read our full Fundbox review.
In order to qualify, you’ll need to meet Fundbox’s criteria of:
$500 to $5,000,000
7.90%
12 to 84 months
Taycor Financial can help new and established businesses finance up to 100% of basic and heavy equipment costs with no down payment required. The equipment serves as collateral for the loan, which allows the company to impose more lenient qualifying requirements. Low-credit borrowers can unlock up to $5,000,000 in financing with no annual revenue minimum.
Business owners can typically receive their funds within four to 24 hours after approval. Taycor Financial offers several repayment options, including monthly, quarterly-deferred, seasonal and semi-annual payments.
Read our full Taycor Financial review.
In order to qualify, you’ll need to meet Taycor Financial’s criteria of:
$50,000 to $500,000
10.50% to 14.25%
120 months
The Small Business Administration (SBA) guarantees a portion of all SBA loans, helping small business owners access the capital they need to grow and expand their companies. SmartBiz’s platform is a great way to compare leading SBA lenders to find a competitive SBA 7(a) loan. Loan amounts go up to $500,000 and can be used for working capital expenses, business debt refinancing, commercial real estate purchases and more.
While approval and processing times for traditional SBA loans can take months, SmartBiz offers a streamlined process that takes as little as seven days. Interest rates are capped by the SBA, but SmartBiz’s additional application and service fees can add up.
In order to qualify, you’ll need to meet SmartBiz’s criteria of:
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 loans for business 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.
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:
It’s worth spending time researching private lending companies to find the best option for your business. Pay attention to extra service fees since these can significantly increase your loan’s overall costs. Also, make sure the lender reports payments to the major credit bureaus to help build your business credit.
Check out our guide to small-business lender reviews before applying to fully understand what each lender offers.
Private lenders should have a list of required documents on their website. If not, contact them for more guidance. Here’s a general list of what you may need to provide when applying for loans from private lenders:
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.
| Pros | Cons |
|---|---|
Generally easier to obtain than traditional lending options Funding within one to three business days after approval More lenient qualifying requirements than traditional financing | Interest rates and additional fees tend to be higher than traditional bank loans May not help you build your business credit score Online lenders don’t offer in-person support |
