Best Small Business Loans

American Express Business Blueprint is ideal for business owners that want a line of credit. That said, it does have high monthly fees of up to 27% instead of set interest rates.

Pros:

• No prepayment penalty
• Three loan terms of six, 12, or 18 months

Cons:

• Monthly fee for each month there is an outstanding balance.
• Fees range from 3% to 9% for six-month loans, 6% to 18% for
• 12-month loans, and 9% to 27% for 18-month loans.

To receive financing through American Express Business Blueprint, borrowers must have a personal credit score of at least 640, have been in business for at least a year, and have a business checking account. Revenue is expected to be at least $3,000 per month.

If approved, funds take around three business days to appear in the account.

Biz2Credit provides three loan options — term, working capital, and commercial real estate. Because of this, their loan amounts range from $25,000 to $6 million, which is higher than most competitors.

Pros:

• High borrowing limit, which is ideal for larger businesses
• Low minimum credit score requirement
• Fast approval process

Cons:

• Some loans require a minimum of $100,000 revenue

The Biz2Credit loan application takes just a few minutes, and applicants can expect to hear back in as little as 24 hours.

To qualify for a working capital loan, you must have a personal credit score of at least 575, have been in business for at least six months, and have an annual revenue over $100,000.

To qualify for a term loan, you must have a personal credit score of at least 660, have been in business for at least 18 months, and have an annual revenue over $250,000. CRE loans share the same requirements, except you must also own commercial property.

BlueVine specializes in business lines of credit and checking accounts. Their business lines of credit come with two payment options — Flex 6 and Flex 12.

Flex 6 customers make weekly payments for 26 weeks. Flex 12 customers make monthly payments for 12 months. After 45 days on Flex 6, or 90 days on Flex 12, borrowers may be eligible to increase their credit line.

While BlueVine doesn’t disclose the APR on their lines of credit, they do have fees of 1.7% per week or 7% per month.

Pros:

• Quick approval process
• Option to transfer funds within a few hours
• Low credit score requirement

Cons:

• Not available in North and South Dakota
• Doesn’t disclose interest rates
• No mobile app

Eligibility for BlueVine business lines of credit depend on the specific repayment option the owner selects.

For Flex 6 plans, the owner must have:

• A minimum personal credit score of 625
• Been in business for at least 24 months
• $40,000 a month in revenue, or at least $480,000 revenue annually
• A corporation or LLC
• No bankruptcies within the last three years

For Flex 12 plans, the owner must have:

• A minimum personal credit score of 650
• Been in business for at least three years
• $80,000 a month in revenue, or at least $960,000 revenue annually
• A corporation or LLC

After applying, you can expect a decision in as quick as five minutes. BlueVine offers a $15 bank wire transfer, which moves approved funds directly into your bank account within a few hours. If you don’t need the funds immediately, a standard transfer will take one to three business days.

Fundbox stands out from the crowd with its lower-than-average requirement for how long you need to be in business to qualify. Applicants’ businesses only need to be in operation for six months to qualify, making it ideal for early-stage startups.

It also offers an incredibly fast approval and funding process. Approval decisions come within three minutes, and funds are transferred within one business day.

Business owners get a revolving line of credit with repayment terms of either 12 or 24 weeks.

Pros:

• Fast approval
• Fast funding
• Low credit score requirement
• Low requirement for being in business

Cons:

• Lower funding limit in comparison to competitors
• Repayment terms are shorter than some competitors

To qualify, business owners must have:

• A personal credit score of at least 600
• Been in business for at least six months
• At least $100,000 in revenue

Funding Circle offers three types of loans — term, line of credit, and SBA (Small Business Administration). Loan amounts range from $25,000 to $500,000, with repayment terms between six months and five years.

The major downside of Funding Circle loans are their origination fees. While it’s a one-time fee, it ranges from 3.49% to 6.99% of the approved amount, which can cost you quite a bit.

Pros:

• Fast approval process
• Multiple loan options
• No minimum revenue requirement

Cons:

• Origination fees
• Requires two years in business

To qualify with Funding Circle, you must have:

• Been in business for at least two years
• A personal credit score of at least 660
• No personal bankruptcies within the last seven years

SBA loans have different requirements:

• At least two years in business
• A minimum personal credit score of 650
• Annual revenue of at least $400,000
• No current federal tax liens
• Operation in one of the SBA’s eligible industries

The lack of a minimum revenue requirement for the term loan and line of credit make Funding Circle ideal for early-stage companies, small businesses, and those with low revenue.

Lendio isn’t a lender itself — it’s a lender marketplace for business loans. It allows borrowers to connect with over 75 lenders through one simple application. The platform has several funding options including:

• Business loans
• Lines of credit
• SBA loans
• Equipment financing
• Merchant cash advances
• Commercial mortgages
• Invoice factoring
• Business acquisition loans

You won’t find specific terms on Lendio’s website. This is because they are a marketplace, and terms will vary depending on the lender.

Pros:

• Single application
• Variety of lending products

Cons:

• Exact terms are unclear upfront

Lendio doesn’t have clear eligibility requirements, simply due to the marketplace nature of the product. Borrowers have qualified with credit scores as low as 560, but 680 or higher is recommended.

You must have been in business for at least six months, which is standard for most loan types.

The application process will take you around 15 minutes, and funds are transferred in as little as 24 hours.

National Funding offers working capital loans that can be used for all working capital expenses, such as inventory, payroll, and marketing. The major downside of their loans is the two repayment options — either daily or weekly. There is no monthly repayment option.

Pros:

• Offers a 7% discount for paying the loan off early
• High financing limit

Cons:

• Few repayment options
• Requires gross annual sales of at least $250,000

To qualify with National Funding, you’ll need:

• A credit score of at least 600
• To have been in business for at least six months
• Have at least $250,000 per year of gross sales

If approved, you’ll receive the funding in as little as 24 hours.

OnDeck offers two funding options — term loans and lines of credit.

Term loans are between $5,000 and $250,000 and come with repayment terms of up to 24 months. Lines of credit are between $6,000 and $100,000 and come with a 12-month repayment term.

Pros:

• Low minimum credit score required
• Option for same-day funding

Cons:

• Not available in Nevada, North Dakota, or South Dakota
• Annual revenue requirement of $100,000

To qualify with OnDeck, you must have:

• A personal credit score of at least 625
• Been in business for at least one year
• An annual gross revenue of at least $100,000
• An open business checking account

In most cases, applicants will receive their decision on the same day. If approved, borrowers can have the funds in their bank account the same day.

QuickBridge offers small business loans with a fast application and funding process. The loans come with a factor rate, starting at 1.11.

For example, a $10,000 loan with a factor rate of 1.11 would mean $1,100 in interest. This could lead to high-interest costs, or save you money, depending on the factor rate and loan amount you qualify for.

Pros:

• Factor rate loans
• Flexible loan terms
• Fast approval and funding

Cons:

• Interest could be high
• You’ll need solid credit to qualify

To qualify with QuickBridge, you’ll need to have:

• Fair to excellent credit
• Been in business for at least six months
• An annual revenue of at least $250,000

After submitting the application, you can expect to hear back within 24 hours.

TD Bank offers three funding options — term loans, lines of credit, and SBA loans. Loan amounts range from $10,000 to $1 million, with repayment terms between one and five years.

For healthcare professionals — such as dentists, veterinarians, physicians, and eye care professionals — TD Bank offers funding up to $12 million with 100% practice financing.

Pros:

• Flexible financing limits for healthcare professionals
• Offers mobile banking
• Several financing options

Cons:

• Loans over $100,000 require in-person application

To qualify for financing with TD Bank, you must have:

• A personal credit score of at least 660
• Been in business for at least one year

You can expect an application decision the same day you apply, but it may take up to two business days to receive the funds. SBA loans will take several weeks to hit your bank account.