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
None
Taycor Financial offers equipment financing and leasing options for brand-new companies with no minimum time in business requirement, while most competitors require at least some business history. With Taycor’s equipment loans, you can borrow up to $5,000,000 to buy essential equipment for your business, such as vehicles, technology and heavy machinery.
With a minimum credit score of only 600, low-credit borrowers may be able to qualify for this type of financing. Unlike many equipment lenders, Taycor Financial does not require a down payment, but you might need to provide a personal guarantee.
In order to qualify, you’ll need to meet Taycor Financial’s criteria of:
$5,000 to $50,000
12.00% Based on the current prime rate of 7.50% + 4.50% added by Wells Fargo.
60 months (no annual review)
Not required Wells Fargo doesn’t disclosed a minimum requirement, but it does say that this line of credit is available to businesses that are less than 24 months old.
If you’re looking for flexible access to funds you can borrow from again and again, consider a business line of credit, which allows you to withdraw what you need when you need it — only paying interest on what you borrow.
Wells Fargo offers unsecured lines of credit up to $50,000 for businesses that have been in operation for less than two years. Once your business has been operating for two years or more, you can upgrade to the Wells Fargo BusinessLine line of credit to access up to $150,000 in revolving funds.
As a traditional bank, Wells Fargo offers these lines of credit with longer terms and more affordable rates than what you’re likely to find with an alternative lender — but as a trade-off, you might have to wait longer to receive your funds.
In order to qualify, you’ll need to meet Wells Fargo Bank’s criteria of:
$30,000 to $5,000,000
75% to 90%
0.75% to 3.50%
None
If your startup has unpaid invoices and needs fast capital, altLINE may be able to provide up to $5,000,000 with invoice factoring. This allows you to sell unpaid invoices to receive up to 90% of their face value, essentially letting altLINE handle customer payments on your behalf. This may be a good option for borrowers who want to avoid taking on debt to fund their business.
Instead of interest rates, altLINE deducts a factor rate, or discount rate, from each invoice’s remaining balance. Low-credit borrowers can typically qualify because altLINE puts more emphasis on your customer’s creditworthiness, invoices and payment due dates over your credit history.
Read more about altLINE.
altLINE is willing to work with a wide range of businesses, including startups and companies with limited credit. Although a background and credit check is run on all applicants, altLINE does not set a minimum credit score or time in business requirement. Instead, your ability to qualify will depend on your invoices.
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 weeks8.99% for 24 weeks
3 or 6 months
3 months
If your business is seasonal and looking to overcome temporary cash flow gaps, a business line of credit from Fundbox could be the right choice. Fundbox provides lines of credit up to $150,000 with relatively low interest rates. When you make a withdrawal, you can expect to receive your funds as soon as the next business day.
However, Fundbox has some of the shortest repayment terms on this list — giving you only 3 or 6 months to repay your debt — so this option is best suited for businesses who expect their cash flow issues to stabilize in the coming months. You’ll also need to be prepared to sign a personal guarantee to receive your funds.
In order to qualify, you’ll need to meet Fundbox’s criteria of:
Up to $10,000,000
10.50% to 14.00%
14% for loans $50,000 or less
13.5% for loans $50,001 to $250,000
12% for loans $250,001 to $350,000
10.5% for loans above $350,000
Some borrowers may qualify for lower rates. Based on the current prime rate of 7.50% + a rate maximum set by the SBA.
12.50% to 15.50%
15.5% for loans $25,000 or less
14.5% for loans $25,001 to $50,000
13.5% for loans $50,001 to $250,000
12.5% for loans above $250,000
Some borrowers may qualify for lower rates. Based on the current prime rate of 7.50% + a rate maximum set by the SBA.
24 to 120 months
6 months
The U.S. Small Business Administration (SBA) works with lenders like Fundible to provide accessible, affordable business loans. These loans are often attractive due to their low interest rates and lengthy loan terms. But while many SBA lenders require businesses to be in operation for two to three years, Fundible offers SBA loans to businesses that are only six months old.
However, while an online lender may be able to provide same-day funding for traditional term loans, SBA loans can take up to two months or more to process and fund. Working with an SBA Preferred Lender can expedite this process, but Fundible is not a part of the Preferred Lender Program, meaning this option isn’t ideal for borrowers with urgent needs.
Read more about Fundible.
In order to qualify, you’ll need to meet the Fundible’s criteria of:
Starting at $1,000; loan amount is equal to your cash deposit
Not disclosed
12 months (with annual review)
6 months
Bank of America’s secured business line of credit can help budding entrepreneurs set aside money for expenses while building business credit. This cash-secured line of credit works differently than other lines of credit. Here, you provide a cash deposit (starting at $1,000) and can then withdraw funds up to that amount as often as needed. After a year of making regular payments, you can get your security deposit back.
Once your business has been in operation for at least two years, with an annual revenue of $100,000 or more, you can upgrade to Bank of America’s unsecured line of credit, which is a more typical line of credit with funding starting at $10,000. Bank of America also offers rate discounts with its Preferred Rewards for Business program.
In order to qualify, you’ll need to meet Bank of America’s criteria of:
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 $500,000
1.11 factor rate
4 to 24 months
6 months
National Funding offers unsecured business loans up to $500,000 for startups with no collateral, which may be appealing if you want to avoid putting your business assets on the line to secure financing. You can use your borrowed funds for working capital, marketing, business taxes, inventory and more. With a quick application process, you could receive your funds as soon as 24 hours after approval.
Note that payments are required daily or weekly for working capital loans, which might be a strain on your business budget. Also, the factor rate can make it hard to compare against other business loan offers.
In order to qualify, you’ll need to meet National Funding’s criteria of:
$25,000 to $600,000
1.11 factor rate
6 to 24 months
6 months
If your personal credit score is making it difficult to qualify for business financing, consider a bad credit business loan from Credibly, an online lender that works with borrowers with scores as low as 500. Credibly offers working capital loans up to $600,000, and there are no limitations on how you use the funds for your business.
However, you’ll need to make daily or weekly payments and your business will need to be generating a healthy amount of revenue — a monthly average of $15,000 or more — to qualify. Also, keep in mind that a lower credit score generally means you’ll pay higher rates – Credibly’s starting rate of a 1.11 factor rate is unlikely to be offered to applicants with low credit scores.
In order to qualify, you’ll need to meet Credibly’s criteria of:
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
Up to 18 months
6 months
If you’re looking to borrow a large amount of working capital for your business, Fora Financial’s high borrowing amounts might be attractive. With Fora Financial, businesses can borrow up to $1,500,000, and with a streamlined application process, you could receive your funds as quickly as 24 to 48 hours after loan approval.
While certain lenders charge prepayment penalties on business loans, Fora Financial rewards you for paying off your debt early – though it doesn’t specify exactly what those discounts are. Despite offering high loan amounts, the lender requires no collateral to get a loan. However, your business will need to generate a substantial amount of revenue to qualify.
In order to qualify, you’ll need to meet Fora Financial’s criteria of:
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
12 months
If you need fast funds, OnDeck may be a good choice. Depending on where you live and when you apply, you may be able to receive your funds as soon as the same day. An OnDeck loan can cover a variety of expenses, such as inventory, payroll services, equipment upgrades and the consolidation of business debt.
But you’ll need to make daily or weekly payments, and with a high average APR, costs can add up quickly. However, if you’re able to pay off your loan early, you may be able to do so without facing any prepayment penalties.
In order to qualify, you’ll need to meet OnDeck’s criteria of:
$5,000 to $250,000
8.49%
12 to 60 months
12 months
Accion Opportunity Fund (AOF) is a nonprofit lender that provides affordable and inclusive loans of up to $250,000 to underserved businesses who struggle to qualify for traditional financing. Focused on minority entrepreneurs and women-owned businesses, AOF offers educational classes, coaching and customer support to help new companies launch, develop and strengthen their business ideas.
To qualify, you must own at least 20% of the business and be located in an eligible state. Loans are not available for businesses based in Washington, D.C., Montana, North Dakota, South Dakota, Tennessee or Vermont.
In order to qualify, you’ll need to meet AOF’s criteria of:
A startup business loan can help new companies get the capital they need to cover startup costs and grow their business. Startup loans typically have more lenient eligibility requirements, but may come with higher fees and shorter repayment terms than traditional small business loans.
You can use startup financing to cover supplies, equipment, office spaces, marketing campaigns, website design, inventory, payroll and more.
Note that the term “startup” doesn’t apply to only brand-new companies. In the lending industry, a startup business typically refers to a company that has been operating for less than one to two years.
Every lender will have its own application process, which might be listed on their website. Here are some general steps to take once you’re ready to apply for a startup business loan.
There are many types of business loans to consider based on your eligibility and immediate needs. Only you can decide how much you need and what’s right for your startup business.
Poor credit is one of the main reasons business loan applications get rejected. If you’re still working on building your business credit, lenders may weigh your personal credit score more heavily — so be sure to check your credit and take steps to improve your score before applying.
While getting a loan offer can be exciting, you should shop around to find the right loan with the best rates and fees. Read small business lender reviews in advance to see if a potential lender fits your company’s criteria and needs.
Business loan requirements vary by lender and loan type. Here are some standard documents you may need to provide when applying for a small business loan for your startup company:
You can usually apply for a new business loan online with a quick and streamlined process, although some traditional banks might require a phone call or in-person visit. Read the fine print before signing your business loan agreement to ensure you understand the terms, rates and additional fees.
There’s no one-size-fits-all approach to finding the perfect funding solution for your business, especially since startup costs vary by industry.
Here are a few things to consider when picking the best small business startup loan for your needs:
Interest rate: Business loan interest rates vary by lender and loan type. Make sure to understand the difference between fixed versus variable interest rates. Shopping around can help you find the lowest rate on a loan that fits your needs. You typically have around 14 to 45 days to apply to multiple lenders without any further impact to your credit score (this is considered “rate shopping”).
Additional fees: Watch out for extra charges like origination fees, late charges or prepayment penalties — these can all make the loan cost higher than anticipated. Fortunately, the best startup lenders typically don’t charge these extra fees.
Repayment term: Loan repayment terms can range from a few months to 25 years. Most loans require daily, weekly or monthly payments over the loan term. However, some lenders may allow you to make interest-only payments during the startup phase and then principal plus interest payments later. Others might call for interest-only payments for the life of the loan with a balloon payment at the end of the loan term.
Time to fund: Some alternative lenders offer same-day business loans, while others typically approve and issue funds within one to three business days. In contrast, traditional lenders can take up to two weeks or longer to approve and process your loan, with SBA loans taking around 30 to 90 days.
Collateral required: Collateral is anything of value you own and put up as security for a loan, such as real estate, inventory, equipment, accounts receivable or other assets. The lender can seize the collateral if you default on the loan.
Loan purpose: Some lenders restrict how you spend the funds. For example, you can’t use an SBA microloan to pay off existing debt or purchase commercial real estate. If you want to cover the widest range of business expenses, consider a working capital business loan or working capital line of credit.
New businesses will need to rely on their personal finances when borrowing funds. As discussed above, you’ll likely need the following to qualify for startup financing:
Some small business loans may also require a down payment, collateral or a personal guarantee.
Yes, it’s possible to get a startup business loan without revenue or collateral. However, you’ll likely end up paying higher fees with shorter repayment terms, which could be a financial burden for your new company.
Boosting your credit score and saving for a down payment before applying can help unlock more competitive rates and terms.
The amount you can get with a startup loan will depend on multiple factors, such as your time in business, credit score, collateral and annual revenue. Small business loans can start at $500 and go as high as $15 million or more, depending on your business’s unique profile.
Newly established businesses should expect a much lower borrowing range with a first-time business loan. For example, the average SBA Microloan was $16,159 for fiscal year 2024.
Even if you get approved for a higher loan amount, it’s best to limit how much you borrow to ensure your business can repay the debt.
Lenders usually check an applicant’s personal credit score when deciding whether to approve a startup loan. However, some lenders will look at factors beyond credit history. For example, a lender may scour your bank statements, business plan and cash flow projections to get a clearer picture of your situation and your company’s potential. They may even ask for collateral to help secure the loan.
But be prepared: Most unsecured or bad-credit business loans typically have higher interest rates and less flexible terms, which can cost more over the long run.
Your lender may require a down payment to qualify for a startup business loan. For example, SBA loans may require a 10% to 30% down payment, depending on the lender and the loan type.
However, equipment lenders often don’t require a down payment since the debt is secured by the equipment. For example, Taycor Financial provides 100% equipment funding for startups.
