Small Business Loans: Compare Your Financing Options

Find the right funding tailored to your small business.

How Does LendingTree Get Paid?
Privacy Secured  |  Advertising Disclosures
 

How Does LendingTree Get Paid?

LendingTree is compensated by companies on this site and this compensation may impact how and where offers appears on this site (such as the order). LendingTree does not include all lenders, savings products, or loan options available in the marketplace.

Best small business loans in 2022

Written by Carissa Chesanek and Melissa Wylie | Edited by Kurt Adams | Updated on September 16, 2022

Small business loans can cover real estate, equipment, payroll or nearly any need. For this guide, we selected the best small business loans that offer transparent rates and repayment terms, maximum loan amounts of at least $150,000, funding within two weeks or less and lenient requirements for personal credit scores and time in business. Learn more about how we chose the best small business loans here.

LenderBest forLoan TermsAmountRatesMin. credit score
SmartBizSBA loans120 to 300 months$30,000 to $5,000,0007.50% to 10.29%640 to 675
OnDeckShort-term loansUp to 24 months$5,000 to $250,000Starting at 29.90% APR600
Funding CircleLong-term loans6 to 84 months$25,000 to $500,00011.29% to 30.12%660
BluevineLine of credit6 to 12 monthsUp to $250,000Simple interest rates starting at 4.80% for 26-week repayment625
CrediblyWorking capital3 to 15 monthsUp to $400,000Factor rates starting at 1.15500
Taycor FinancialEquipment financing12 to 84 monthsUp to $2,000,0003.49% to 28.00%550
Elevation CapitalAccounts receivable financing120 days average repayment$5,000 to $10,000,000Factor rates starting at 1.12550
Reliant FundingMerchant cash advances3 to 15 months$5,000 to $400,000Factor rates starting at 1.10525
Uplyft CapitalBad credit2 to 12 months$3,000 to $500,000Factor rates starting at 1.24450
FundboxFast funding12 to 24 weeksUp to $150,0004.66% to 8.99%600
Fora FinancialStartupsUp to 15 monthsUp to $750,000Factor rates starting at 1.10500
National FundingBusiness expansion24 to 60 monthsUp to $150,000Starting at 4.99%575
Seeking COVID-19 relief for your small business? Find resources here.


APR range7.5% to 10.29% [shortcode update]
APR range7.50% to 10.29%
Loan amount$30,000 to $5,000,000
Term (months)120 to 300 months
Min. credit score640 to 675
FeesUp to 3.5% of guaranteed portion up to $1,000,000, plus 3.75% of guaranteed portion over $1,000,000
Time to fundingAs short as 7 days

Pros and cons:
  Online marketplace matches borrowers with SBA lenders

  Shortens SBA funding process to as quickly as one week


  Down payment required

  Businesses must show at least two years of operating history

Learn more

These popular government-backed loans are available for most business uses, with terms up to 25 years and moderate interest rates. SBA loans are widely available through banks, though the application process can take anywhere from five days to two months or more.


APR rangeStarting at 29.9% APR [shortcode]
APR rangeStarting at 29.90% APR
Loan amount$5,000 to $250,000
Term (months)Up to 24 months
Min. credit score600
FeesMaximum origination fee of 4.00%
Time to fundingUp to 3 business days

Pros and cons:
  Repayment terms between 3 to 24 months

  Loan amounts between $5,000 to $250,000


  $100,000 annual revenue required

  Lowest APRs reserved for strongest applicants

Learn more

Short-term loans have repayment terms of a few months to a year or more, good for when you expect a quick return on what you’re investing in with the loan funds. Loan approval can be as fast as a few days, even for business owners with poor credit — however, higher rates are often a trade-off for speed and accessibility.


APR range11.29% to 30.12%
APR range11.29% to 30.12%
Loan amount$25,000 to $500,000
Term (months)6 to 84 months
Min. credit score660
FeesOrigination fee of 3.49% - 6.99%
Time to funding5 days

Pros and cons:
  Loans available from $25,000 to $500,000

  No prepayment penalties


  Requires collateral

  Average Funding Circle borrower makes about $1.4 million in annual sales

Learn more

Traditional long-term business loans offer relatively low-rate financing for lasting investments, such as machinery or business acquisition. Repayment terms can typically last as long as 10 years, with approval times that tend to take multiple weeks; in addition, lenders will usually require you to have strong credit.


APR rangeSimple interest rates starting at 4.80% [shortcode]
APR rangeSimple interest rates starting at 4.80%
Loan amountUp to $250,000
Term (months)6 to 12 months
Min. credit score625
FeesN/A
Time to funding1 to 3 business days

Pros and cons:
  Credit lines available up to $250,000

  Revolving access to funds


  $120,000 in annual revenue required

  Weekly interest in a short repayment time frame can make Bluevine an expensive option

Learn more

Though not technically a loan, a line of credit is capital that you can draw upon as needed, and you’ll only have to pay interest on what you borrow. You can use business lines of credit for short- or long-term needs, and they can be secured or unsecured. Lenders can fund lines of credit as quickly as the next day or within weeks.


APR rangeFactor rates starting at 1.15 [shortcode]
APR rangeFactor rates starting at 1.15
Loan amountUp to $400,000
Term (months)3 to 15 months
Min. credit score500
Fees2.50% origination fee
Time to fundingMay be same business day

Pros and cons:
  Loan amounts up to $400,000

  Minimum credit requirement of 500


  Six months in business required to qualify

  Average of $15,000 in monthly bank deposits required

Learn more

Working capital loans are short-term loans disbursed within 24 hours to a week of approval and designed to fund your company’s day-to-day operations during a time of reduced activity. When the lull ends and business booms again, you should have enough revenue to repay the working capital loan.


Taycor Financial lender logo

APR range3.49% to 28% [shortcode update]
APR range3.49% to 28.00%
Loan amountUp to $2,000,000
Term (months)12 to 84 months
Min. credit score550
FeesDoc fee (amount not disclosed)
Time to fundingTypically within 24 hours

Pros and cons:
  Don’t need to have excellent credit

  Can receive funding amounts up to $2,000,000


  Typically requires 2 years in business

  Down payment is required

Learn more

Equipment financing allows businesses to pay for equipment, such as commercial trucks, a restaurant oven or an office copier, a little at a time for relatively low rates; in exchange, the equipment is used as collateral. Equipment financing is ideal for borrowers who need hard assets quickly, but can’t afford to purchase them outright.


Elevation Capital lender logo

APR rangeFactor rates starting at 1.12 [shortcode]
APR rangeFactor rates starting at 1.12
Loan amount$5,000 to $10,000,000
Term (months)120 days average repayment
Min. credit score550
FeesN/A
Time to fundingWithin 10 days

Pros and cons:
  $5,000 to $10,000,000 available

  Minimum credit requirement of 550


  $150,000 in annual revenue required

  10 days to receive funds

Learn more

Exchange unpaid invoices for immediate cash, minus a fee. AR financing, also known as “invoice factoring,” may be a good option for risk-averse or poor-credit borrowers, or those without a lengthy business history.


Reliant Funding lender logo

APR rangeFactor rates starting at 1.1 [shortcode]
APR rangeFactor rates starting at 1.10
Loan amount$5,000 to $400,000
Term (months)3 to 15 months
Min. credit score525
FeesOrigination fee of $499 for funding amounts up to $50,000; No origination fee for higher amounts.
Time to fundingAs little as 24 hours

Pros and cons:
  $5,000 to $400,000 available

  Your credit history is not a primary deciding factor


  Faster-than-normal repayment terms could lead to higher daily payments

  Six months in business required

Learn more

While it’s not a loan, a merchant cash advance may be an attractive financing option for businesses with high sales volume — it’s a lump sum of funding that businesses repay through their daily transactions. However, be prepared for your lender to take daily payments out of your sales, which could cause cash flow issues if you don’t have a good grasp of your daily revenue and operating costs.


Uplyft Capital logo

APR rangeFactor rates starting at 1.24
APR rangeFactor rates starting at 1.24
Loan amount$3,000 to $500,000
Term (months)2 to 12 months
Min. credit score600 (specifically for lines of credit)
FeesNo fees on MCAs
Time to fundingCould receive on same day requested

Pros and cons:
  Only six months in business

  Quick funding


  Required to provide three months of past bank statements

  Required to deposited at least $12,000 per month

Learn more

Getting a business loan with bad credit can be challenging — but it’s not impossible. Some lenders, including Uplyft Capital, look at more than just your credit score when determining your qualifications to borrow funding. However, a lower score can come with higher interest rates and additional requirements from the lender.


Fundbox logo

APR range4.66% to 8.99%
APR range4.66% to 8.99%
Loan amountUp to $150,000
Term (months)12 to 24 weeks
Min. credit score600
FeesNo origination fee
Time to fundingNext business day after approval

Pros and cons:
  No prepayment penalty

  Only six months in business required


  Must have a business checking account

  Must make at least $100,000 in annual revenue

Learn more

If you need fast funding for your business, same day business loans may be a good option for you. Fundbox can transfer the funds for a line of credit as soon as the next business day after you’re approved — as a trade-off, however, be prepared for shorter repayment times.


APR rangeFactor rates starting at 1.10
APR rangeFactor rates starting at 1.10
Loan amountUp to $750,000
Term (months)Up to 15 months
Min. credit score500
FeesN/A
Time to funding72 hours upon approval

Pros and cons:
  Only six months in business

  No collateral required


  No open bankruptcies

  Must have at least $12,000 in gross sales

Learn more

With many lenders requiring a minimum of two years in business, it can sometimes can be hard to get a startup business loan. Fora Financial’s business loan only requires you to be in business for six months to receive funding of up to $750,000.


APR rangeStarting at 4.99%
APR rangeStarting at 4.99%
Loan amountUp to $150,000
Term (months)24 to 60 months
Min. credit score575
FeesDoc fee (1% of equipment cost)
Time to funding24 hours after approval

Pros and cons:
  No down payment required

  Only 6 months in business required


  Must obtain a quote from equipment vendor

  Must pay a doc fee of 1% equipment cost

Learn more

Looking for a loan to help expand your business? National Funding’s equipment loans could be a great option. For example, if you’re a restaurant, hardware store or another physical storefront business looking to expand to an additional location, an equipment loan could help you get the necessary equipment needed to scale. Equipment loans from National Funding do not require a down payment, though making one could help to lower your monthly payments.

Methodology:

How we chose our picks for the best small business loans:

We chose small business loans from online lenders that could cover small, medium or large expenses. Small business lenders that appear on this list meet the following criteria:

  • Maximum amounts no less than $150,000
  • Funding available within two weeks of approval
  • No more than two years in business required
  • Personal credit score requirements below 680
  • Transparent rates and repayment terms

What is a small business loan?

Small business loans help entrepreneurs build, maintain or expand their companies. Getting a business loan for your company doesn’t always require walking into a bank and securing funds — there are also a variety of online small business lenders to consider, which may have easier qualifications and faster applications.

Small businesses account for a significant chunk of American economic activity — the U.S. Small Business Administration (SBA) estimates that there are 32.5 million small businesses across the country. While the nature of each one varies, many hold one major thing in common: the need for business financing.

Funding for underserved small businesses

There are several financing options aimed at historically disadvantaged businesses, including those owned by women and veterans, as well as Black, Asian, Latino and Native American entrepreneurs.

Business funding for women

Women entrepreneurs can apply for business grants or debt financing reserved for women-owned businesses. Women-owned businesses have grown at a faster rate than U.S. businesses overall in recent years, but when women are approved for business loans, the average annual loan size is about 33% less than men.

Business funding for minorities

Capital is available for business owners of color in the form of business grants or loans. Compared to their counterparts, those in historically marginalized communities face more entrepreneurial hurdles related to funding. Organizations and lenders across the U.S. allocate funds to support minority-owned businesses.

Business funding for veterans

There are several resources and funding options for veteran business owners. After leaving the military, many veterans often have trouble transitioning their military training to civilian careers and instead choose to start their own ventures. Business loans for military veterans are among the keys to success.

How to get a small business loan

The application process for small business loans differs depending on the type of business loan you’re seeking. Short-term loans typically have less paperwork than long-term loans, while equipment financing usually doesn’t require as much documentation as a business line of credit. However, it’s still a good idea to have certain documents ready in case they’re requested, in order to improve your chances of approval:


Summarizes revenue and costs and resulting profit or loss over a specified time, such as a quarter or fiscal year. Also known as a P&L or income statement.


Tracks how much cash your business has on hand at a certain point in time. While a P&L takes into account non-cash costs like depreciation, a cash flow statement allows you to understand how much cash is available for monthly bills.


Shows what the company owns and owes at a specific point in time. There is no set format for balance sheets, as the information reported varies by industry.


Describes the nature and scope of your operation, including projected income and expenses. A business plan is a guide for making business decisions and to help potential lenders, partners and investors evaluate your potential.


The most recent two years of business and personal tax returns, which help lenders verify income, as well as document your ability to repay the loan. Your business accountant can prepare the business and tax documents needed to support your small business loan application and guide you in accounting and tax matters related to your business.

Small business loan application checklist

Once you’ve determined that your business can handle taking on a loan, you should begin the process of rounding up the necessary documentation for your loan application. The exact paperwork differs across business funding partners, but will most likely include the following documents:

  • 2 to 3 years of personal and business tax returns
  • Recent profit and loss statement
  • Past bank statements
  • Recent balance sheet
  • Legal filings related to ownership
  • Information on existing debts
  • Business license (if applicable)
  • Business plan

AVOID THESE COMMON SMALL BUSINESS LOAN MISTAKES
Failed applicants commonly make the mistake of submitting inadequate or poorly planned financial documents and business plans. It’s important to gather as much well-prepared information as you can when applying for a business loan.
Close your loan
After approval, the closing process involves reviewing documentation that will determine the terms of your selected loan. A business loan contract is a legally binding agreement that will dictate your interest rate and repayment schedule. Make sure you have a thorough understanding of what the lender is asking of you and the implications these terms have on your business’s financial future. After you sign, you’ve agreed to everything in the contract — including what happens when you make late payments or default.

What do small business lenders look for?

Small business lenders want to know that your business and credit history are relatively stable. As such, they’ll look at several different debt, asset, credit and operational factors to judge your risk as a borrower.
  • TIME IN BUSINESS

    In general, a business that’s been around for a couple of years is more stable than a startup. This is key for lenders, as a business that has a proven track record of revenue over the past two years is a more attractive borrower than a company with spotty revenue over the past six months.

  • CREDIT SCORE

    Your credit score is a data point lenders use to determine your reliability as a borrower. In most cases, you’ll need a credit score in the 600s to qualify for financing, although certain lenders and loan types may allow scores as low as 500.

  • CASH FLOW

    A cash-flow projection shows when money is collected, when cash goes out and what’s left. Lenders typically like to see that the borrower has a thorough understanding of the financial operating cycle of the business.

  • COLLATERAL

    Collateral is an asset that lenders can legally seize if you can’t make payments, including company buildings, equipment and accounts receivable. Some business owners choose to use their personal assets — including their homes — as collateral on a business loan.

  • DEBT-TO-EQUITY RATIO

    Your company’s debt-to-equity (D/E) ratio measures the proportion of your company’s debt divided by shareholders’ equity. This metric helps a lender understand how likely you are to cover new debt based on the debt you’re already paying. While high D/E’s are common in some industries, your goal should be to keep your business’s D/E ratio as low as possible.

  • 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.

View Your Small Business Loan Options

Estimate how much you can borrow

Check your creditworthiness

Lenders may analyze your personal and business credit history when reviewing your company’s loan application; if your business is new, your personal credit profile would carry more weight.

Borrowers should expect to have good credit to qualify for traditional business loans.

  • 680 or higher: Minimum required by most traditional bank and credit union business loans.
  • 670 or lower: Accepted by online lenders. They may even consider scores as low as 500; howeve the trade-off might be higher fees.

Check Your Credit Score: It’s free, and won’t affect your credit score

it's free, and won't affect your credit score

Small business loan FAQs

Business owners can take out small business loans — generally between $5,000 and $500,000 or more — to finance expenses like payroll, 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.

Several types of business loans are available for small business owners, including term loans and business lines of credit for general business expenses. Financing is also available for specific purchases like equipment and commercial real estate. In addition, invoice factoring and accounts receivable financing are available for businesses that collect a high volume of invoices.

Yes, bad credit business loans are available for business owners with personal credit scores as low as 500. However, lenders may assign high interest rates to low-credit borrowers.

A personal guarantee is a common feature of business loans, which requires the business owner to be personally responsible for their company’s debt in case of default. A personal guarantee lowers the risk for a lender, but for the business owner, it may limit any protections your business structure offers.

Online lenders may be the best option for a startup business loan. They typically require only a few months in business, as opposed to brick-and-mortar banks that often have stricter eligibility requirements. Other options for startup capital include crowdsourcing, self-funding or grant funding.

It depends. Each lender will have its own criteria, sometimes varying based upon the loan type. The lowest interest rates are often reserved for applicants with higher credit scores, however. If this doesn’t fit your business, online lenders may be more lenient with credit score requirements.

If your application for a business loan is denied, revisit the reason why. Focus on repairing your credit if your credit score was too low; if you haven’t operated in business long enough, simply wait until you’re eligible. In the meantime, consider a small business credit card to get access to the capital you need.