According to the Small Business Administration (SBA), many business owners don’t realize they’re eligible for small-business loans. 4 Best Small-Business Loans
As a result, they rely on some combination of small-business credit cards, personal credit cards, and personal loans that offer unsecured or secured loans. SBA-collected data reveals that nearly half (46%) of small businesses rely on personal credit cards for working capital, equipment financing, and other short-term credit needs.
But many of these borrowers don’t need to mix their business and personal finances – a practice that can expose business owners to increased personal liability, among other downsides.
Instead, they have access to a wide range of small-business lenders that provide secured and unsecured business loans, SBA loans, business lines of credit, and specialised business credit products such as merchant cash advance loans, equipment financing loans, business real estate loans, and invoice factoring (invoice financing) loans, all of which do not require a personal guarantee.
Best Small-Business Loans (4 Best Small-Business Loans)
Whether you’re a small-business owner assessing your company’s financing options for the first time or seeking a new lender or loan type to aid in business growth or diversification, keep this list of business lenders handy.
All of these small-business and SBA lenders offer competitively priced commercial financing products for smaller enterprises, including solopreneurs and microbusinesses.
Bear in mind that the loan options and lending offers—loan types, rates, terms, and loan amounts—you receive from these providers may vary based on your business or personal credit score, assets, annual revenue, time in business, and other factors.
1. Bluevine
Business Lines of Credit Up to $250,000
Bluevine is a pioneering online lender that offers business lines of credit up to $250,000, available to qualifying businesses and business owners with less-than-perfect credit.
Bluevine’s business lines of credit are available to businesses with at least $120,000 in annual revenue ($10,000 per month) and 12 months of operational history. The minimum eligible owner FICO score is 625. Bluevine offers three lines of credit options, each with different terms and qualification requirements, including 6-month (26-week) and 12-month (52-week) repayment plans. Higher credit scores and revenue levels are typically required for longer-term and monthly repayment options. A higher score likely qualifies you for a lower interest rate and higher funding amount.
The application process is a breeze: Just provide some basic information about your business, submit your application, and use your online dashboard to request funds, which typically arrive within 24 hours – or instantly if you have a Bluevine Business Checking account. If you don’t have a Bluevine checking account, you can pay a $15 wire transfer fee for faster access.
When you apply for a Bluevine Line of Credit, you’re also automatically considered for term loans up to $500,000 from Bluevine’s lending partners, with repayment terms up to 24 months. Additionally, Bluevine has partnered with Fundera by NerdWallet to connect you with SBA 7(a) loans up to $350,000.
Note: Bluevine previously offered invoice factoring directly but sold that division to FundThrough in January 2022. Bluevine now refers customers to FundThrough for invoice factoring needs. Bluevine business lines of credit are not available in Nevada, North Dakota, South Dakota, or U.S. territories.
- Products: Business lines of credit; access to term loans and SBA loans through lending partners.
- Loan Amounts: Business lines of credit are available up to $250,000; term loans can go up to $500,000 through partners; and SBA loans are available up to $350,000 through partners.
- Terms: Business line of credit draws must be repaid on six- or 12-month schedules (weekly or monthly payments). Repayment schedules for term loans vary by partner. Interest rates start at 7.80% simple interest, with APRs up to 95% depending on creditworthiness and term selected.
2. OnDeck (4 Best Small-Business Loans)
Flexible Business Term Loans and Lines of Credit
OnDeck is a popular alternative lender with a long track record of serving small and midsize businesses that may not qualify for traditional loans.
It was one of the first online lenders to make business term loans and business lines of credit available to startups and growing businesses with relatively low annual revenues. Today, it remains a top financing choice for enterprises of all sizes.
OnDeck offers two permanent business credit products: business term loans and business lines of credit.
With a repayment term up to 24 months, OnDeck’s term product qualifies as a short-term loan. Loan amounts start at just $5,000 and go up to $400,000, and funding typically arrives on the same business day after approval for loans up to $100,000 (when approved before 10:30 AM EST on weekdays).
OnDeck also offers a prepayment benefit: Approved borrowers may be eligible for interest reductions when they renew their loan after reaching certain milestones in their repayment (six months of on-time payments or 40% of the loan paid down, whichever comes first).
OnDeck’s business lines of credit range from $6,000 to $200,000 and have 12-, 18-, or 24-month repayment terms that reset after each withdrawal. Funding is near-instantaneous through instant funding via an eligible business debit card, even during weekends and evenings. There are no prepayment penalties on lines of credit.
For both permanent products, OnDeck has relatively lenient underwriting standards: minimum credit score requirement of 625 (FICO), at least one year in business, and at least $100,000 in annual revenues. OnDeck is not available in North Dakota.
- Products: business term loans, business lines of credit.
- Loan Amounts: Term loans range from $5,000 to $400,000; lines of credit range from $6,000 to $200,000.
- Terms: Lines of credit repayment terms last 12, 18, or 24 months; business loan repayment terms last up to 24 months. APRs for term loans range from approximately 35% to 99%; APRs for lines of credit range from approximately 39% to 99%. Origination fees for term loans range from 0% to 4%, decreasing with repeat borrowing.
3. Accion Opportunity Fund (4 Best Small-Business Loans)
Nonprofit Business Lender Offering Microloans to Underserved Communities
Accion Opportunity Fund is a nonprofit business lender more notable for the types of enterprises it caters to than the types of loans it makes.
Accion Opportunity Fund’s borrowers, broadly speaking, are businesses that have historically been neglected or underserved by traditional sources of capital: those owned by women, people of colour, veterans, and disabled individuals, among other groups under-represented in the broader business community.
These businesses tend to be smaller and service-oriented—restaurants, salons, and similar businesses featured prominently in the Accion Opportunity Fund’s promotional materials—and capital- and credit-poor, including those whose loan applications have been denied elsewhere.
The core loan offered by Accion Opportunity Fund is a business term loan available in 45 states. Funding amounts start as low as $5,000 (though minimum amounts vary by state, ranging from $5,000 to $50,000 depending on location—for example, Oregon requires a minimum of $50,000, North Carolina and Alaska require $25,100, and Kentucky and Maryland require $15,100), making the Accion Opportunity Fund one of the few business funding options for bona fide microentrepreneurs and side hustlers seeking microloans.
To qualify for Accion Opportunity Fund’s core term loan, borrowers generally need at least one year in business and $100,000 or more in annual sales. The lender evaluates multiple factors beyond credit score, including cash flow and business financials, making it more accessible than many traditional lenders.
Accion Opportunity Fund also offers SBA loans for established and startup businesses, serving as an SBA Preferred Lender.
In addition to traditional business terms, Accion Opportunity Fund offers specialised financing, including commercial truck financing (up to $250,000 for new or used trucks and trailers), food truck loans (up to $200,000 for mobile food businesses), and equipment leasing.
Accion Opportunity Fund is not available in Washington D.C., Montana, North Dakota, South Dakota, Tennessee, or Vermont.
- Products: business term loans, SBA loans, commercial truck financing, food truck loans, equipment leasing.
- Loan Amounts: Business term loan amounts range from $5,000 to $250,000 (minimums vary by state); SBA loan amounts vary based on the program.
- Terms: Terms vary based on borrower location, creditworthiness, revenue, and other factors. Repayment terms can extend up to 36 months. Interest rates for business term loans range from 9.99% to 28.99%. Origination fees range from 3% to 5.99%. No prepayment penalties.
Best Small-Business Loan Marketplaces to Compare Options (4 Best Small-Business Loans)
Small-business lending is a competitive industry. The lenders on the list above constantly vie to offer the best interest rates and loan terms, with borrowers as the main beneficiaries. But applying for multiple loans is a time- and labour-intensive process.
That’s where small-business loan marketplaces come in. These resources allow prospective borrowers to check rates and terms from multiple lenders in one place, without entering the same information multiple times or fielding calls from more loan officers than they can count.
The end result is basically the same: putting in a loan application and hopefully accepting a loan offer from the lender best suited to meet your business needs.
1. Fundera by NerdWallet (4 Best Small-Business Loans)
Comprehensive Lineup of Business Lending Solutions
Fundera , now operating as Fundera by NerdWallet after being acquired in 2020, offers a comprehensive lineup of traditional and nontraditional business lending solutions from over 25 financial partners.
Since its founding in 2013, Fundera has helped more than 82,000 businesses secure over $6.4 billion in combined funding. The platform connects entrepreneurs with vetted lenders, including BlueVine, OnDeck, Fundbox, Chase, and American Express, through a single streamlined application.
Business term loans, lines of credit, SBA loans, equipment financing—you name it. If it’s a reputable type of business credit, it’s probably available here. Underwriting requirements vary widely, with some products open to entrepreneurs with credit scores as low as 500, making financing accessible to newer businesses or those working to rebuild credit.
What sets Fundera apart is its combination of technology and personalised support. After submitting your application, you’re assigned a dedicated loan specialist who helps you understand your financing options, compare terms and rates, and identify the best match for your situation. The platform is also a signatory of the Small Business Borrower’s Bill of Rights, maintaining transparency throughout the lending process.
Fundera is completely free for business owners – there are no application fees, origination fees from Fundera, or membership costs. When lenders successfully fund loans, the platform receives referral commissions.
- Products: Business term loans, business lines of credit, SBA loans, invoice factoring loans, equipment financing loans, SBA microloans, merchant cash advances, and short-term loans.
- Loan Amounts: Business line of credit amounts range up to $1 million. Business loan amounts range from $25,000 to $600,000. Equipment and invoice loans range up to 100% of the securing assets’ value. SBA loan amounts range from $5,000 to $5 million. Short-term loans start as low as $2,500.
- Terms: Repayment terms range up to five years for business term loans and lines of credit. SBA repayment terms range from 10 to 25 years. Terms for other products vary by lender- and borrower-specific factors. Funding can occur in as little as 24 hours for some loan types.
2. iBusiness Funding (4 Best Small-Business Loans)
Broad Range of Financing Solutions for Businesses of All Sizes
iBusiness Funding facilitates the connection between business owners and financing offers from a wide range of lending partners, including innovative online lenders and some of the world’s largest banks.
Note: In June 2024, iBusiness Funding (a division of Ready Capital Corporation) acquired Funding Circle’s U.S. business. The platform continues to serve small businesses under the iBusiness Funding brand, maintaining Funding Circle’s commitment to helping companies access the capital they need.
iBusiness Funding has built an extensive track record, having originated, funded, and serviced more than $7 billion in loans across a diverse array of loan products through its platform. Combined with the legacy of the Funding Circle U.S. business it acquired, the platform has facilitated loans to well over 100,000 businesses across hundreds of industries.
In an ever-more competitive environment for business lending marketplaces, iBusiness Funding’s biggest selling points include its commitment to transparency and its broad array of financing solutions, mixing traditional term loans and lines of credit with SBA loans, USDA loans, and streamlined application processes powered by advanced technology, including its LenderAI platform.
- Products: Business term loans, business lines of credit, SBA loans, and USDA loans.
- Loan Amounts: Business term loan amounts range from $5,000 to $500,000. SBA loan amounts range up to $5 million. The platform supports loans from $10,000 to $25 million depending on product type.
- Terms: Business term loans are repaid over six months to five years in monthly instalments. SBA loans have repayment terms up to 25 years for real estate and up to 10 years for working capital. Interest rates and other terms vary by lender- and borrower-specific factors.
3 Lendio
Specialized Short- and Long-Term Loan Products for Small and Midsize Businesses
Lendio is another business lending marketplace with no shortage of options for would-be borrowers.
Like iBusiness Funding, Lendio brokers offers from dozens of reputable lenders (over 75 lenders in its network) and serves businesses of all sizes, from one-person operations – albeit with established operational histories and decent revenues – to enterprises with tens or hundreds of employees.
Since 2011, Lendio has facilitated more than $16 billion in loans to over 400,000 small businesses across the country.
Lendio offers benefits like very long loan terms (SBA loans can last up to 25 years) and alternative financing options, such as loans for buying equipment and loans for purchasing other businesses.
Eligibility requirements vary by loan type and lender, but borrowers typically need to show operational histories of at least 12 months, solid cash flow for at least three months, and annual revenues of at least $50,000.
Products: Business term loans, business lines of credit, SBA loans, merchant cash advance loans, invoice factoring loans, equipment financing loans, and commercial real estate loans.
Borrower merchant cash advance loans range up to $250,000. Business lines of credit range up to $500,000. Business term loans range up to $600,000. SBA loans and equipment financing loans range up to $5 million. Other products depending on lender- and borrower-specific factors.
Terms: SBA loan terms range up to 25 years. Business lines of credit last one to two years. Business term loans and equipment financing loans must be repaid within one to five years. Invoice factoring loan terms range up to 12 months.
4. SmartBiz (4 Best Small-Business Loans)
Long-Term Financing Options
SmartBiz (now operating as SmartBiz Bank) doesn’t have quite the product breadth of Lendio or iBusiness Funding, but it excels at serving a common business borrowing need: long-term financing with predictable pricing and repayment terms.
SmartBiz specialises in smaller SBA loans and does massive lending volumes. The platform connects small business owners with SBA 7(a) loans for working capital and debt refinancing ranging from $50,000 to $350,000, as well as larger SBA commercial real estate loans up to $5 million. Women, minority, and veteran-owned businesses account for more than 50% of the loans funded through its partner financial institutions.
Additionally, SmartBiz’s proprietary underwriting process streamlines the traditionally lengthy SBA application process, resulting in the funding of more qualified applications sent to partner lenders. That’s a massive selling point for businesses that have struggled to qualify for financing in the past.
Minimum requirements for SBA loans typically include at least 3 years in business, excellent credit and cash flow, and U.S. citizenship or legal permanent resident status. For term loans and lines of credit, requirements may differ by lending partner.
- Products: SBA loans, business term loans, and business lines of credit.
- Loan Amounts: Business lines of credit range from $50,000 to $100,000. Business term loan amounts range from $25,000 to $500,000. SBA working capital and debt refinancing loans range from $50,000 to $350,000. SBA commercial real estate loans range up to $5 million.
- Terms: Repayment terms for business term loans vary by lender. Lines of credit feature a 24-month draw period and 36-month repayment term. SBA repayment terms range up to 10 years for working capital and up to 25 years for real estate. Terms for other products vary by lender- and borrower-specific factors.
Final Word (4 Best Small-Business Loans)
Keen-eyed readers might notice that this list of small-business financing options omits two common sources of commercial funding: traditional banks and credit unions.
That’s no accident. I have nothing against big banks and community-focused credit unions. Both types of institutions offer excellent products for business bank accounts, including a few with totally free checking options.
And some traditional banks’ solutions appear on marketplace lending platforms like Lendio, which works with Bank of America, JPMorgan Chase, and other megabanks.
But it’s also true that traditional banks, in particular, tend to be friendlier to larger, established enterprises, especially during periods of economic uncertainty. Smaller businesses with limited revenues and shorter operational track records suffer as a result.
The good news, of course, is that small-business lenders like the ones on this list are more than willing to step up and fill the gap. If your business needs financing now, there’s a good chance you’ll find it from one of these lenders or marketplaces – even if you have spotty or downright bad credit.
