The best small business loans combine the advantage of easy access to capital, competitive interest rates, and no collateral. Based on these factors, we’ve identified the eight best small business loans:
BlueVine: The Best Small Business Loan Line Overall
Fundbox: Best for New Businesses
OnDeck: Best for Quick Financing
US Bank: Best for Existing Companies
TD Bank: Best for Interest Only Payments
SBG Financing: Best Working Capital Line of Credit
Headway Capital: Best for Long Payment Terms
Reliable: Best for people with less than optimal credit
Small Business Lines of Credit
Provider | Maximum Loan Amount | Annual Percentage Rate (APR) Range | Minimum FICO Score |
|---|---|---|---|
BlueVine | $250,000 | 4.8% to 78% | 600 |
Fundbox | $100,000 | 10% to 79% | 600 |
OnDeck | $100,000 | 10.99% and up | 600 |
US Bank | $100,000 (unsecured) | Up to 25% | 680 |
TD Bank | $100,000 | Up to 25% | 650 |
SBG Funding | $150,000 | 21% and up | 500 |
Headway Capital | $100,000 | 40% and up | None |
Credibly | $250,000 | 10% and up | 560 |
BlueVine Overall Small Business Line of Credit
The BlueVine application process is very simple and easy to use. The time to approval and speed of funding is usually within a day, giving companies quick access to the required capital.
Payment terms can be monthly or weekly and can extend up to one year. BlueVine will accept a line of credit for business owners who have been in business for less than six months.
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Why We Love It: Within the available small business credit lines, BlueVine’s fast and efficient application process and flexible, post-approval loan repayment terms give it an edge in a competitive market.
Fundbox for Newer Businesses
Newer Fundbox business is a great solution for new businesses that only need a short time to pay off their borrowed capital. Fundbox requires the employer to have been in business for only six months and have a minimum 600 credit score for financing.
Fundbox’s repayment terms are shorter than most lenders we reviewed, with repayment terms set at 24 weeks. This means that if you borrow the maximum amount, your weekly payment will be several thousand dollars.
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Why We Love It: Fundbox gives new businesses the opportunity to get the capital they need.
OnDeck for Fast Funding
The OnDeck line of credit offer is useful for those who work for a short time or have a less than ideal balance and need quick access to funds.
OnDeck requires the business owner to be in business for only one year and approves loans with a credit score of at least 600.
The OnDeck line of credit includes a maintenance fee of $20 per month, an establishment fee for your line of credit, and the line of credit can have high-interest rates exceeding the average 35% April. However, you are only liable to pay the interest on the borrowed amount and there is no early repayment penalty.
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Why We Love It: OnDeck offers companies with less than optimal credit the chance to quickly get the capital they need.
US Bank for Established Businesses
One advantage of a US Bank Small Business Credit Line is that you can lock in your interest rate on an existing line balance, which can come in handy if interest rates rise and your book before the rate rises.
Also, credit lines over $50,000 are not considered annual fees. If your credit limit is under $50,000, an annual fee of $150 will apply. If you choose to follow an unsecured line of credit, you can get a line of credit of up to $100,000.
The US Bank line of credit requires businesses to be in operation for two years and owners have a good credit score; this means new businesses may need to pursue other options.
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Why We Love It: US Bank offers its customers the ability to lock in an interest rate when paying off their lines of credit.
TD Bank for Interest-only Payments
TD Bank offers the ability to apply online for unsecured financing of up to $100,000 with approval, which takes approximately five business days. TD Bank is one of the few lenders that only offer interest payments on one line of credit, and this will help businesses that need some cash flow support in a lean income cycle.
A major disadvantage of TD Bank is that applicants must have TD Bank’s presence in 16 states, primarily on the East Coast of the United States. It’s also worth noting that if you want more than $100,000 in the financing, you’ll need to go to the TD Bank office to apply.
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Why we love it: The interest-only option offers more flexibility for small business owners.
SBG Funding for Working Capital
SBG Funding offers lines of credit to companies with a credit rating of less than 500 or has been in business for less than six months.
Now SBG financing is a good option for companies that need working capital and may not have excellent credit or have only been in business for a few months.
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Why We Love It: SBG Financing provides a line of credit for new small businesses and working capital for businesses with less than ideal credit scores.
Headway Capital for Longer Repayment Terms
Headway Capital offers lines of credit ranging from $5,000 to $100,000, which is sufficient for most small businesses that need capital to cover recurring expenses.
The Headway Capital also has a minimum requirement compared to other lenders; However, it also has some of the highest interest rates among lenders.
No minimum credit score is set with Headway, where business performance is weighed against the owner’s personal credit as part of the decision process.
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Why We Love It: Headway Capital is one of the few alternative lenders that offer up to 24 months’ repayments on borrowed money.
Credibly for Those With Less Than Optimal Credit
It offers reliable lines of credit up to $250,000 with interest rates starting at 4.8% for 26 weeks. This is a good option for businesses whose owners have a low credit score, as a credit rating as low as 560 will be approved by a credit rating. However, interest rates will be higher for people with bad credit. In addition, the setup fee can be reliably estimated.
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Why We Love It: A good and reliable option for mortgage lenders who need short-term financing support.
How We Identify the Best Small Business Loan
Small business loans can often be obtained from several banks, and the process of choosing a good line of credit can be confusing given all the options.
Our evaluation process considers rates, terms, credit score requirements, and availability of financing when setting lines of credit for small businesses.
If a business has been in business for at least two years and the owners have good personal credit, traditional lenders often offer better rates when the business applies for a business loan.
However, most of the providers on our list offer a line of credit with a faster approval and financing process. When applying for a business line of credit, be sure to respond quickly to all questions from the lender as a slow response will delay the decision and financing time.
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If your credit score is not high or you are a new company, alternative lenders are more likely to accept a line of credit than traditional leaders; However, you will pay a higher interest rate.
Traditional lenders will offer lower rates, but may not be quick to give you the money you need. It’s important to shop around and see what is the best option for your business. Depending on your qualifications and business needs, any of these eight lenders is a good option.