Up to $5,000,000
Varies by SBA loan type
Up to 300 months
If your business doesn’t qualify for traditional financing at fair rates, consider using an SBA Preferred Lender like Live Oak Bank instead.
Loans guaranteed by the U.S. Small Business Administration (SBA) are meant to help small businesses get the financing they need by offering more lenient qualifying requirements than standard lenders. And SBA loans have capped interest rates based on your loan size, which keeps interest rates reasonable.
Live Oak Bank offers specialized experts in different industries, like craft distillery, veterinary care and automotive care, which can be incredibly helpful if you’re in one of those industries. If you’re not, it won’t disqualify you from funding, but you may not receive the same specialized help from your business analyst.
Still, this lender is not very upfront about its specific eligibility requirements, which can make it hard to tell if you qualify without talking to someone. To apply, you’ll need to fill out a lead capture form and speak to a lending specialist to apply for financing.
Read more about the Live Oak Bank Review.
Live Oak Bank doesn’t disclose the minimum credit score, time in business or annual revenue you’ll need to qualify. Contact the lender directly to learn if your business qualifies for a loan.
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
If you need a quick startup business loan, Fundbox offers up to $150,000 with its business line of credit. New companies can qualify after three months of operation and at least $30,000 in annual revenue. Withdraw funds up to your credit limit as often as needed, only paying interest on the amount you use. If approved, funds could hit your bank account as soon as the next business day.
You can unlock additional benefits, including up to 20% off fees, by upgrading to Fundbox Plus. However, with payment terms of either 3 or 6 months, you’ll have to pay back your line of credit much sooner with Fundbox than you might with another lender.
Read our Fundbox review.
In order to qualify, you’ll need to meet Fundbox’s criteria of:
$2,000 to $250,000
3.00% to 27.00%
3% to 9% for 6-month terms
6% to 18% for 12-month terms
9% to 27% for 18-month terms
12% to 18% for 24-month terms
6 to 24 months
The American Express Business Line of Credit offers businesses access to revolving funds up to $250,000. With a business line of credit, you can borrow up to the credit limit as often as you like, only paying fees on the withdrawn amounts.
The streamlined application takes minutes to complete, requiring you to link your business bank account. If approved, you could receive funds within one to three business days.
In order to qualify, you’ll need to meet American Express’s criteria of:
Up to $1,500,000
1.15 factor rate
Up to 18 months
If you need a loan but have bad credit, Fora Financial considers borrowers with credit scores as low as 570 with no collateral required. Your business could access funds up to $1,500,000 that can be used for almost any type of business expense.
To qualify, your business must generate at least $20,000 a month in revenue. You can expect to receive your funds within 24 to 48 hours after approval. In addition to term loans, Fora Financial offers revenue advances where payback is based on a percentage of your daily or weekly receipts.
Read our Fora Financial review.
In order to qualify, you’ll need to meet Fora Financial’s criteria of:
$500 to $5,000,000
7.90%
12 to 84 months
Taycor Financial offers equipment loans up to $5,000,000 with extended repayment terms and no prepayment penalties. Since the equipment acts as collateral to secure the loan, all business types are encouraged to apply — including startups or low-revenue companies. Additionally, Taycor Financial’s low minimum required credit score of 550 makes it a great option if you’re looking for equipment loans with bad credit.
You can also consider other funding solutions with Taycor Financial, including business lines of credit, commercial bridge loans and term loans.
Read our Taycor Financial review.
In order to qualify, you’ll need to meet Taycor Financial’s criteria of:
Up to $600,000
1.11 factor rate
6 to 24 months
Credibly’s working capital loans can provide funding in less than 24 hours if you need cash to cover operating expenses or purchase inventory. With a minimum credit score of 500, Credibly may be willing to look past a checkered credit history if you have a healthy annual revenue.
In addition to working capital loans and merchant cash advances, Credibly partners with lenders offering merchant cash advances, business lines of credit, equipment financing, SBA loans, invoice factoring and other loans to help your business get the funding it needs.
Read our Credibly review.
In order to qualify, you’ll need to meet Credibly’s criteria of:
$5,000 to $250,000
27.30% Minimum APR offered to at least 5% of customers (not the lowest rate offered)
18 to 24 months
OnDeck allows you to borrow large amounts, even with a low minimum credit score and a short business history. Depending on your location, you may be able to access your funds the same day you’re approved. Additionally, you can build your business credit by making on-time payments with an OnDeck loan.
However, OnDeck’s rates tend to run high — with an average 56.1% APR for its term loan.
Read our OnDeck review.
In order to qualify, you’ll need to meet OnDeck’s criteria of:
Up to $100,000
Not disclosed
12 to 24 months
If your business’s revenue is on the lower end, consider Headway Capital. You only need to be able to show $50,000 in annual revenue to qualify. Once approved, you can borrow up to $100,000 with a flexible line of credit for expenses like payroll, inventory, marketing or covering seasonal dips in income.
Headway Capital uses a holistic approach to evaluate your loan application, considering factors beyond your credit score. However, you still need to have been in business for 12 months to be considered.
Read our Headway Capital review.
In order to qualify, you’ll need to meet Headway Capital’s criteria of:
$5,000 to $250,000
8.49%
12 to 60 months
The Accion Opportunity Fund (AOF) is a nonprofit organization focused on helping diverse business owners get the resources and funding they need for their companies to succeed. With funds ranging from $5,000 to $250,000, AOF can be a great choice for minority entrepreneurs and those looking for small business loans for women.
AOF also offers microloans for immigrant-owned businesses, as well as grants for Black small business owners. Entrepreneurs can take advantage of AOF’s extra resources and support in English and Spanish.
Read more about the Accion Opportunity Fund.
In order to qualify, you’ll need to meet Accion Opportunity Fund’s criteria of:
$25,000 to $500,000
7.49%
6 to 84 months
A long-term business loan from iBusiness Funding can provide between $25,000 and $500,000, helping you cover expenses like payroll services, inventory, equipment and more. With a streamlined application process, you can receive funds in as soon as two business days. Repayment terms go up to seven years with no fees for repaying the debt early.
iBusiness Funding also offers business lines of credit with no monthly maintenance fee and SBA loans.
Read our iBusiness Funding review.
In order to qualify, you’ll need to meet iBusiness Funding’s criteria of:
Up to $30,000,000
1.00% to 5.00% factor rate every 30 days (discount rate)
If you have significant capital tied up in unpaid invoices, eCapital provides up to $30,000,000 with fast invoice factoring. You can receive a cash advance for 80% to 90% of your outstanding invoices while eCapital collects customer payments on your behalf. eCapital will then take its factor rate (discount rate), and send you the remaining amount.
eCapital provides what’s called non-recourse invoice factoring, which allows you to keep the advance even if your customers fail to pay. Since this involves a slightly higher risk for the lender, non-recourse factoring typically costs more.
Read more about eCapital.
In order to qualify, you’ll need to meet eCapital’s criteria of:
$10,000 to $15,000,000
Varies by product
Up to 300 months
With close to 7,000 physical branches throughout the U.S., Wells Fargo Bank could be a good option for business owners wanting a traditional brick-and-mortar bank experience. Wells Fargo Bank offers unsecured and secured lines of credit, SBA loans, healthcare practice loans, business bank accounts and business credit card rewards.
While bank business loans generally have lower interest rates than online lenders, it can take up to two weeks to process and fund a Wells Fargo Bank business line of credit. Traditional banks also typically require a good credit score and at least two years in business, although the Wells Fargo Small Business Advantage line of credit is designed for businesses that have been operating for less than two years.
Read our Wells Fargo Bank review.
In order to qualify, you’ll need to meet Wells Fargo Bank’s criteria of:
$5,000 to $500,000
1.11 factor rate
4 to 60 months
If you need fast access to capital, National Funding provides quick business loans with an approximate 24-hour turnaround. Its term loan provides up to $500,000 with no collateral required. Even better, you can get a discount for paying off your loan early, making this a solid contender for business owners who may be able to make extra payments on higher profit months. National Funding also offers equipment financing and leasing from $3,000 to $150,000.
The company also has a Guaranteed Lowest Payment program, but it only applies if you find a better rate with the exact same terms and conditions and without contingencies.
Just keep in mind you need to earn at least $250,000 a year to qualify for financing with National Funding.
Read our National Funding review.
In order to qualify, you’ll need to meet National Funding’s criteria of:
25+ years in business. 110+ million Americans served. $260+ billion in funded loans.
Instead of sharing information with multiple lenders, fill out one simple, secure form in five minutes or less.
We’ll match you with up to five lenders from our network of 300+ lenders who will call to compete for your business.
We provide ongoing support with free credit monitoring, budgeting insights and personalized recommendations to help you save.
Small business loans help new and established companies access capital for various business needs. With business financing, you can purchase inventory, invest in new equipment, build an expansion or cover emergency expenses.
Traditional banks, credit unions, online lenders and government agencies all offer small business loans.
The best business loan for your company depends on how much you need, your business’s qualifications and how quickly you need the funds.
A merchant cash advance (MCA) gives you a lump sum of cash upfront against your future sales. You repay the merchant cash advance through a percentage of daily or weekly credit card sales.
While this type of funding can deliver cash fast, it tends to be a more costly way to borrow money for your company.
Invoice factoring allows businesses to sell unpaid invoices to a factoring company in exchange for a cash advance.
This can be a good option for cash-strapped businesses or those with poor or limited credit, but you can typically get only 70% to 90% of your invoice face value.
Invoice factoring can also get expensive, with factoring rates going as high as 8.25%.
Business credit cards can help track business expenses and unlock cash back or travel rewards while monitoring employee spending.
To avoid paying a high annual percentage rate, pay off your credit card statement balance in full by the due date.
Federal government agencies, state governments, private corporations and foundations offer grants for small businesses.
You can narrow your search based on business type, location and demographics, such as minority business grants and business grants for women.
Because grants provide free money that typically doesn’t need to be repaid, competition can be stiff.
Business crowdfunding is when you ask family, friends and the general public for donations to kickstart your business.
This method can help you test out a business idea and generally appeals to startups or businesses struggling to get funding.
Just be aware that some crowdfunding platforms deduct a fee before your total donations.
Peer-to-peer lending, or P2P lending, is a type of financing where individual and commercial investors provide the loan funds rather than a financial institution.
A P2P online platform acts as the coordinator between you and the investors, helping process and finalize your loan details.
While P2P loans typically have more lenient qualifying requirements, they can take longer to fund than other types of financing. Additionally, P2P lending might not be available in your state.
Personal loans for business may be easier to get if you struggle to meet the strict eligibility criteria for a business loan.
However, this type of financing relies on your personal credit and income, putting your personal credit and assets at risk.
And personal loans won’t help you build business credit, nor can you claim the loan interest as a qualified business tax deduction.
Bootstrap financing is when you use your own financial resources to fund your business.
Startup businesses may use bootstrapping to get off the ground, but you risk not recouping your investment if your business fails to thrive.
When you apply for a business loan, lenders want to know that your business and credit history are stable. Here are some common business loan requirements you may need to meet to get approved for small business financing:
TIME IN BUSINESS
In general, your business will be in a stronger position to borrow if you can prove you have a track record of solid revenue over the past one to two years. This is more attractive to a lender than a company with spotty revenue over the past six months.
CREDIT SCORE
Lenders use your credit score to determine your riskiness as a borrower. In most cases, you’ll need a good to excellent credit score in the mid-600s or higher to get a business loan, although certain lenders allow scores as low as 500. Your business credit score should be at least 80, although some lenders may rely on just your personal score when reviewing your loan application.
CASH FLOW
A business cash-flow projection shows when money is collected, when cash goes out and what’s left. Lenders typically like to see that you understand where your business’s money is going each month.
COLLATERAL
Collateral is an asset that lenders can legally seize if you can’t make payments. Common forms of collateral include real estate, equipment, money owed to your company (accounts receivable) and even cash. Some business owners use their personal assets — including their homes — as collateral on a business loan.
FIXED CHARGE COVERAGE RATIO
Your business’s fixed-charge coverage ratio measures how well your company can pay its fixed expenses, including any debts and interest you have. Lenders use this metric to help determine whether or not to approve a business loan application.
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.
In order to pick the best business loan, you can compare the following loan details:
Before closing your loanAfter approval, the closing process involves reviewing documentation that will determine the terms of your selected loan. A business loan agreement is a legally binding contract that dictates your interest rate and repayment schedule.
Ensure you thoroughly understand what the lender is asking of you and what the terms mean for 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 can’t repay the debt.
Business owners can take out small business loans — anywhere between $500 and $15.5 million — to finance expenses like payroll financing, 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.
Yes, bad credit business loans are available for business owners with personal credit scores as low as 500. However, these loans tend to come with higher interest rates and less flexible repayment terms.
A personal guarantee requires you as the business owner to be personally responsible for the company’s debt in case of default. A personal guarantee is fairly common on small business loans because it lowers the risk for a lender. But as the business owner, it may limit any protections your business structure offers.
Online lenders may be the best option to get a startup business loan with no money. Unlike brick-and-mortar banks that often have stricter eligibility requirements, some alternative lenders will work with you after about six months in business. If you can’t find a suitable lender providing business loans for new businesses, you can consider alternative options like crowdsourcing, self-funding or grant funding.
Each lender will have its own criteria based on the loan type. In general, you need a personal FICO Score of at least 500 to get a small business loan. But the lowest business loan interest rates are typically reserved for borrowers with higher credit scores. You can check and monitor your credit score for free with LendingTree Spring.
Most lenders look for minimum monthly or annual revenue when you apply for a loan. It’s common to expect a minimum annual revenue requirement of $50,000 or more for unsecured loans. However, you may be eligible for a business loan with a lower annual revenue if you can provide collateral.
If you were rejected for a business loan, revisit the reason why. Focus on improving your personal credit and business credit scores. If you haven’t operated in business long enough, wait a bit. In the meantime, consider a small business credit card or a personal loan to access capital for any immediate business needs.
