Personal Loans for Business: Compare These Lenders

A personal loan for business may come with risk but can be easier to qualify for than traditional business loans.

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

How Does LendingTree Get Paid?

LendingTree is compensated by companies on this site and this compensation may impact how and where offers appear on this site (such as the order). LendingTree does not include all lenders, savings products, or loan options available in the marketplace.
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Written by Tara Mastroeni | Edited by Amanda Push | Updated March 21, 2024
How Does LendingTree Get Paid?
LendingTree is compensated by companies on this site and this compensation may impact how and where offers appear on this site (such as the order). LendingTree does not include all lenders, savings products, or loan options available in the marketplace.

How Does LendingTree Get Paid?

LendingTree is compensated by companies on this site and this compensation may impact how and where offers appear on this site (such as the order). LendingTree does not include all lenders, savings products, or loan options available in the marketplace.
LenderUser ratingsBest for…APR rangeLoan termsLoan amountsCredit score requiredOrigination fee
LightStream logo
(310)
User Ratings & Reviews rating-reviews-tooltip-icon

Ratings and reviews are from real consumers who have used the lending partner’s services.

Large loan amounts6.99% - 25.49%* (with autopay)24 to 84 months$5,000 - $100,000Good to excellent creditNone
Upstart logo
(16,548)
User Ratings & Reviews rating-reviews-tooltip-icon

Ratings and reviews are from real consumers who have used the lending partner’s services.

Bad-credit borrowers7.80% - 35.99%36 and 60 months$1,000 - $50,0003000.00% - 12.00%
Discover personal loans logo
(1,593)
User Ratings & Reviews rating-reviews-tooltip-icon

Ratings and reviews are from real consumers who have used the lending partner’s services.

Repayment assistance programs7.99% - 24.99%36 to 84 months$2,500 - $40,000720None
Upgrade logo
(2,219)
User Ratings & Reviews rating-reviews-tooltip-icon

Ratings and reviews are from real consumers who have used the lending partner’s services.

Small loan amounts8.49% - 35.99% (with discounts)24 to 84 months$1,000 - $50,0005801.85% - 9.99%
Best Egg logo
(2,548)
User Ratings & Reviews rating-reviews-tooltip-icon

Ratings and reviews are from real consumers who have used the lending partner’s services.

Secured loans8.99% - 35.99%36 to 60 months$2,000 - $50,0006000.99% - 8.99%
(47)
User Ratings & Reviews rating-reviews-tooltip-icon

Ratings and reviews are from real consumers who have used the lending partner’s services.

Same-day funding9.116% - 29.99% (with autopay)36 or 60 months$2,000 - $45,000640Up to 9.00%

 

Read more about how we chose our picks for best personal loans for business lenders.

Personal loans for business lenders at a glance

LightStream logo

LightStream: Best for large loan amounts

APR range6.99% - 25.49%* (with autopay)
Loan terms24 to 84 months
Loan amounts$5,000 - $100,000
Origination feeNone
Minimum credit scoreGood to excellent credit
ProsCons

 High borrowing cap

 No origination fee

 Same-day funding available

 Only available to those with good or excellent credit

 No option to prequalify

 Higher minimum loan amount

Upstart logo

Upstart: Best for bad-credit borrowers

APR range7.80% - 35.99%
Loan terms36 and 60 months
Loan amounts$1,000 - $50,000
Origination fee0.00% - 12.00%
Minimum credit score300
ProsCons

 Considers applicants with little or no credit history

 Funding available within one business day

 Option to change your monthly payment date

 Charges an origination fee

 Limited loan terms available

 High maximum APR

Discover personal loans logo

Discover: Best for repayment assistance options

APR range7.99% - 24.99%
Loan terms36 to 84 months
Loan amounts$2,500 - $40,000
Origination feeNone
Minimum credit score720
ProsCons

 No origination fee

 Competitive minimum APR

 Three repayment assistance options

 Charges a $39 late payment fee

 Higher minimum credit score

 No joint loans

Upgrade logo

Upgrade: Best for small loan amounts

APR range8.49% - 35.99% (with discounts)
Loan amounts$1,000 - $50,000
Loan terms24 to 84 months
Origination fee1.85% - 9.99%
Minimum credit score580
ProsCons

 Small loan amounts available

 Interest rate discount available

 Allows for joint applications

 High maximum APR

 Charges an origination fee

 Charges late fees

Best Egg: Best secured personal loans

APR range8.99% - 35.99%
Loan terms36 to 60 months
Loan amounts$2,000 - $50,000
Origination fee0.99% - 8.99%
Minimum credit score600
ProsCons

 Low minimum APR

 Lower minimum credit score requirement

 Smaller loan amounts available

 Requires collateral

 Charges an origination fee

 Limited loan terms

Rocket Loans logo

Rocket Loans: Best for same-day funding

APR range9.116% - 29.99% (with autopay)
Loan terms36 or 60 months
Loan amounts$2,000 - $45,000
Origination feeUp to 9.00%
Minimum credit score640
ProsCons

 Same-day funding available

 Open to borrowers with fair credit

 Lower minimum APR

 Charges an origination fee

 Not available in all states

 Relatively low borrowing cap

What is a personal loan for business?

As the name suggests, a personal loan for business is simply a personal loan that’s used to fund business expenses. Since personal loans can be used to fund almost anything, many lenders allow them to be used to cover business-related purchases when needed.

The major benefit of going this route is that personal loans tend to be easier to qualify for than traditional small business loans. This is because approval is based on the financial profile of the business owner rather than the health of the business itself. In this case, your eligibility will be largely based on your personal FICO score and DTI ratio, rather than common business metrics, such as annual revenue or overall time in business.

However, the downside is that you’ll need to accept personal responsibility for paying back the loan. With a traditional business loan, the liability for repayment falls on the business itself. However, if you decide to take out a personal loan and default on the loan, your credit score will suffer the negative impact.

How to compare personal loans for business

Once you’ve decided if it makes sense for you to use a personal loan to fund your business expenses, the next step is to shop around for a loan. Here’s a look at how to compare your loan offers once you have them in hand.

APR: Your APR tells you how much the loan will cost you. This includes interest and any fees charged by the lender. Comparing this number is important because it plays a huge role in determining how much you’ll pay over the life of the loan.

Fees: As far as personal loans are concerned, the most common fees you’ll see are origination fees, late payment fees and returned payment fees. While prepayment penalties are less common, it never hurts to check with the lender about whether one is included in your loan agreement.

Loan term: Your loan term is how long it will take to repay your loan in full if you stick to the prescribed repayment schedule. With a short-term loan, you’ll likely pay less in interest charges overall, but your monthly payment will probably be higher. In contrast, long-term loans usually offer more affordable monthly payments, but in exchange, you’ll likely pay more interest over time.

Funding time: The funding timeline tells you how long it will take to receive your funds, usually measured from the time you sign your loan contract. Some lenders can offer quick loans with same-day funding while others may require a few business days.

Lender perks: Some lenders may also offer unique perks, such as interest rate discounts or zero-fee loans. These benefits can save you money over time, so be sure to ask your lender if it offers any similar features.

 Use our personal loan calculator to understand the true cost of your loan, considering interest.

How to apply for a personal loan for business use

Luckily, the process for applying for a personal business loan is the same as if you were applying for a personal loan for any other purpose. Here’s what you can expect:

  1. Check your credit score: Your credit score can often be the single biggest determining factor in whether you get approved for a personal loan. It can also tell you what types of interest rates you’re likely to qualify for. If your score is on the lower end, consider working to improve your score before applying in order to secure the best possible rate.
  2. Shop around for a loan: Not all lenders allow you to prequalify for a personal loan, but many do. Prequalification allows you to see estimated rates and terms for a loan without impacting your credit score. Do your best to gather multiple estimates before officially applying for a loan. This type of shopping around can help you save money in the long run.
  3. Formally apply for the loan: After you’ve picked the best lender for you and found all your supporting documentation, the next step is to formally apply for the loan. In most cases, this will involve filling out an online application and uploading supporting documentation (more on that next). However, depending on the lender, you may have to apply in person or over the phone.
  4. Provide supporting documentation: Once you formally apply for a loan, your lender is likely going to want to verify the information you provided on your application. Typically, your lender will perform a hard credit pull and ask you to provide some supporting documentation, such as your W-2 and government-issued ID. It’s a good idea to find these documents ahead of time so they’re ready to go when you apply.
  5. Close on the loan: Once the lender approves your loan, you’ll read over the paperwork and sign on the dotted line. From there, the funds will be disbursed to you.

How we chose the best personal loans for business

We reviewed more than 20 lenders to determine the overall best six personal loans for business use. To make our list, lenders must offer joint loans with competitive APRs. From there, we prioritize lenders based on the following factors:

  • Accessibility: Lenders are ranked higher if their personal loans are available to more people and require fewer conditions. This may include lower credit requirements, wider geographic availability, faster funding and easier and more transparent prequalification and application processes.
  • Rates and terms: We prioritize lenders with more competitive fixed rates, fewer fees and greater options for repayment terms, loan amounts and APR discounts.
  • Repayment experience: For starters, we consider each lender’s reputation and business practices. We also favor lenders that report to all major credit bureaus, offer reliable customer service and provide any unique perks to customers, like free wealth coaching.

Frequently asked questions

Yes, it’s possible to use a personal loan to cover business expenses. However, not all lenders allow it. Be sure to research lender loan use restrictions before applying.

Personal loans are often easier to qualify for than small business loans, which may be beneficial to some borrowers. Yet, they require the business owner to accept personal responsibility for paying back the loan, which may be a deterrent to others.

The interest on personal loans may be tax deductible if the funds are used toward business expenses. That said, it’s always a good idea to verify allowable tax deductions with a professional as you’re filing your return.