Best Business Loans - Key Details & Pricing [2020’s Reviews]

Check out our compilation of the best business loans in 2020. We crafted our analysis based on:

  • Key Loan Terms
  • Minimum Requirements
  • Repayment Model & Fees
  • Additional Benefits & Restrictions
  • How Business Loans Work
  • Types Of Business Loans

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Best Business Loan Companies In 2020

1. LoanBuilder

1-day turnaround

Good for small, short-term loans

Minimal requirements

Best for getting a small business loan

Visit LoanBuilder

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LoanBuilder is a highly-rated small business loan provider from Paypal that makes borrowing money quick and easy. Get a short-term loan approved within 1 day to get your business up and running. Requirements are minimal and the convenient fixed-fee structure keeps things simple. With no additional hidden fees, you have no surprises to worry about. LoanBuilder is available to businesses in all 50 states.

Read full review

Company Reputation

Competitive APR

Application Process

Customer Support

2. One Park Financial

24-hour turnaround after approval

Startup business loans require no collateral

Loans available to businesses with low credit

Best for customers looking for business loans for bad credit


One Park Financial will help your business secure a loan up to $750,000 even if you have bad credit. The no-obligation online loan comparison service is free to use and only charges a fee once you’ve selected a provider. One Park Financial considers businesses as young as 3 months old with no collateral required, and businesses with bankruptcies or tax liens are accepted.

Read full review

Company Reputation

Competitive APR

Application Process

Customer Support

3. Fundera

Fundera can sync with popular accounting software like QuickBooks

Provides strong privacy and an eligibility tracker

Wide variety of different types of business loans

Best personalized loan for small-business

Visit Fundera

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Fundera is a relatively fresh loan comparison site aimed at securing only the best business loans tailored to your company’s needs. Businesses can choose whatever kind of loan they require, from short-term cash advances to long-term lines of credit. No matter what’s your situation, Fundera will find the right loan provider for you.

Read full review

Company Reputation

Competitive APR

Application Process

Customer Support

4. Lendio

Includes equipment rental and real estate loans

Highly flexible terms with small or large loans available

Free to use with access to all the best lenders

Best for companies that know specifically what type of business loans they are looking for

Visit Lendio

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Lendio is an online service for accessing a wide range of loan types across a broad spectrum of different businesses. Get instant quotes on short and long-term loans, MCAs, credit lines, equipment hire, and real estate loans. Lendio has partnered with hundreds of lenders, many with low entry requirements designed to help new businesses with low monthly revenue. Whether you’re a large corporation or a small startup, Lendio can find the right loan for you.

Read full review

Company Reputation

Competitive APR

Application Process

Customer Support

5. OnDeck

Lines of credit also available

Get a business loan up to $500,000 within 24 hours

Government-backed SBA PPP loans for businesses affected by COVID-19

Has the best rates for small business loans

Visit OnDeck

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OnDeck is a popular online provider of direct business loans and lines of credit to small or medium-sized companies. Get a short-term loan up to $500,000 at as little as 9% APR and repay it over 36 months. If your business loan has been denied by the bank, OnDeck can help with its low FICO score and business revenue eligibility requirements.

Read full review

Company Reputation

Competitive APR

Application Process

Customer Support

6. BlueVine

Instant loans in less than 12 hours

Low-rate SBA PPP loans

Invoice factoring loans up to $5 million

Best for quick business loans

Visit BlueVine

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BlueVine is more than just your typical lender. With invoice factoring up to $5 million and SBA PPP loans with as little as 1% interest, BlueVine can be a lifeline for your business. Get a short or long-term loan up to $250,000 delivered directly to your bank account within 10 minutes of approval. BlueVine has low eligibility requirements for businesses that need hassle-free quick cash.

Read full review

Company Reputation

Competitive APR

Application Process

Customer Support

7. Biz2Credit

Additional products available via lender network

Loans of up to $5 million in working capital

Flexible repayment terms

Best commercial business loan supplier

Visit Biz2Credit

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Biz2Credit can secure short or long term loans of almost any amount for a broad scope of business activities, from cash to real estate. Get cash within 48 hours with minimal paperwork and relaxed business requirements. Biz2Credit works with a wide network of partners to ensure that whatever your financial needs are, they will be able to help.

Read full review

Company Reputation

Competitive APR

Application Process

Customer Support

8. Reliant Funding

Quick, unsecured loans without the need for special documentation

Large loans available with low requirements

No minimum credit score

Best unsecured business loans with no minimum credit score


Reliant Funding offers a range of secured and unsecured loans to businesses of all sizes. Receive a quick cash loan with minimum requirements or a longer-term loan, both available as lines of credit. Loyal customers receive better rates on second and third loans and there are no fees for paying off a loan early.

Read full review

Company Reputation

Competitive APR

Application Process

Customer Support

9. Fundbox

Fast provision of credit (once implemented)

Lines of credit for B2C businesses

100% invoice funding

Best for short term business loans

Visit Fundbox

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Fundbox is an advanced credit provision company for small businesses looking for easy, automated loans. The system integrates with your banking and accounting software to make an assessment of your business needs and provide the best possible business loans based on your financial decisions. Get up to $100,000 credit within 24 hours of implementing the Fundbox system.

Read full review

Company Reputation

Competitive APR

Application Process

Customer Support

10. National Funding

Equipment financing available

Loans and lines of credit up to $500,000

24-hour turnaround

Best low-interest business loans


National Funding is a top-rated business loans provider serving small businesses in the US. Get approved within 24 hours for a small loan of up to $500,000 or receive $150,000 for equipment financing. The free, no-obligation application is quick and easy and won’t affect your credit score.

Read full review

Company Reputation

Competitive APR

Application Process

Customer Support

How We Created This List? Our Methodology

In this article, we share our pick of the top business loans that are currently available today. To create this review we investigated all the various types of business financing options online and read hundreds of business loan reviews. 

The factors we have considered include:

  • Company Reputation – what ratings do online reviewers give for their business loans?
  • Types of loans on offer – short-term, revolving, installment, etc.
  • Variablesannual percentage rate (APR), term lengths, loan amount.
  • Requirements – credit scores, annual revenue, etc.
  • Funding time-frame – how soon can you receive the money?
  • Restrictions – business types or locations that can’t apply.

With this data, we have compiled a comprehensive business loans comparison article that will provide you with all the information you need to choose the best business loan for your company.

At a Glance

  • Good for small, short-term loans
  • 1-day turnaround
  • Minimal requirements
  • No origination fees or prepayment penalties
  • Lower requirements than most banks
  • Fast and easy application process
  • No early repayment discount
  • Long-term financing not available
  • Lien requirement

 

LoanBuilder is a Paypal-driven loan service for small businesses and is also known as PayPal Business Loans. Its subsidiary company, Swift Financial, which PayPal bought out in 2017, has a good online reputation and a history of quality customer care. It has an A+ rating on Better Business Bureau (BBB) and 9/10 on Trustpilot, as well as most other rating sites.

Services

LoanBuilder offers short-term fixed-fee loans with no variable interest. While they are not the cheapest loans available, they have low entry requirements.

  • APR Range: 6% – 19% fixed
  • Loan Amount: $5,000 – $500,000
  • Term Length: 3 – 12 months
  • Funding Time: Within 24 hours of approval (business day)

Requirements

  • Min. credit score: 550
  • Minimum time in business: 9 months
  • Minimum annual revenue: $42,000
  • Other: Lien: UCC 1 Filing

Benefits

  • LoanBuilder is great for new business loans but doesn’t offer SBA-approved loans.

Fees and restrictions

$20 return payment fee.

Restricted businesses include agencies, political, religious, nonprofit, human rights, gambling, conservation, education, civic, and social organizations, amongst others.

 

Read The Full LoanBuilder Review

At a Glance

  • Startup business loans require no collateral
  • Loans available to businesses with low credit
  • 24-hour turnaround after approval
  • Open to businesses with bad credit
  • Rates and fees are not always verified and can change
  • Service fees included

 

One Park Financial is a business loan comparison site that can find multiple loan offers from the best business loan companies for all types of businesses, even those with bad credit. The site aggregates business loan offers from multiple sources, finding the best loan to suit the borrower’s needs. Get up to $750,000 with variable rates and terms for businesses as young as 3 months old.

Services

  • APR Range: Varies (comparison site)
  • Loan Amount: $5,000 – $750,000
  • Term Length: Variable
  • Funding Time: ~ 72 Hours

Requirements

  • Min. credit score: 450
  • Minimum time in business: 3 months
  • Minimum annual revenue: $30,000
  • Other: Poor credit, bankruptcies, tax liens accepted

Benefits

  • BBB accredited with A+ rating
  • Accepts new customers

Fees

The service is free to use with no obligations but One Park Financial does charge a professional service fee when you choose a provider.

 

Read The Full One Park Financial Review

At a Glance

  • Provides strong privacy and an eligibility tracker
  • Wide variety of different types of business loans
  • Fundera can sync with popular accounting software like QuickBooks
  • Best business financing variety
  • Good customer support
  • Strong privacy
  • Lack of clarity on specific fees, some of which can be high
  • Exposure to a limited selection of niche lenders

 

Fundera is a popular financial services comparison site that finds a wide variety of the best online business loans of all kinds. Customers can get quotes on Small Business Administration loans, cash advances, short and medium-term loans, credit lines, equipment loans, and invoice financing. The selection of lenders is restricted so the choice can be limited but there is something to fit everyone’s needs.

Services

  • APR Range: Variable
  • Loan Amount: $2,500 (cash advance) or $10,000-$1 million (credit line)
  • Term Length: 6 months to 5 years
  • Funding Time: 2 days to 2 weeks

Requirements

  • Min. credit score: 550
  • Minimum time in business: Depends on the lender
  • Minimum annual revenue: N/A
  • Other: Bank statements and tax returns
      • Profit and loss statements
      • Verification of rental space

Benefits

  • Fundera is a free-to-use service that supplies SBA-approved loans and first time business loans to new businesses with relatively low credit.

Fees and restrictions

Fundera does not charge fees for the service but each loan provider has its own fee structure. Restrictions regarding business activities may vary from lender to lender.

 

Read The Full Fundera Review

At a Glance

  • Free to use with access to all the best lenders
  • Includes equipment rental and real estate loans
  • Highly flexible terms with small or large loans available
  • Get instant quotes on all types of business loans
  • Highly rated in online reviews as one of the top business loan lenders
  • Comparatively low requirements

 

Lendio is a digital lender marketplace that provides quotes on a wide variety of loan types, including credit cards, large cash flow loans, term loans, merchant cash advances (MCA), Small Business Administration loans, equipment leasing, and real estate. It gets quotes from a range of big lenders from among its 300+ list of vendors, ensuring you get an offer that suits your needs.

Services

  • APR Range: 4% – 30%
  • Loan Amount: $1,000 – $2 million
  • Term Length: 1 month – 5 years (25 years for real estate)
  • Funding Time: 24 hours ~

Requirements

  • Min. credit score: 550
  • Minimum time in business: 12 months
  • Minimum annual revenue: $10,000 / month
  • Other: 6 months business bank account statements
      • Mortgage or landlord verification

Benefits

Lendio uses the same 256-bit encryption used by banking apps. An approved loan is not guaranteed but the service is free to use until you have chosen a lender. Offers some of the best long term business loans for real estate.

Fees and restrictions

  • Origination, prepayment, and admin fees may or may not be added. Interest fees vary between lenders and can be fixed or variable, quoted weekly, monthly, or yearly.
  • Restrictions include commercial real estate, hunting, fishing, gambling, legal, nonprofit, mining, and insurance businesses.

 

Read The Full Lendio Review

At a Glance

  • Government-backed SBA PPP loans for businesses affected by COVID-19
  • Lines of credit also available
  • Get a business loan up to $500,000 within 24 hours
  • Offers SBA PPP loans at 1% fixed interest (currently on hold)
  • More flexible than banks
  • Fees could add up to higher than average
  • Comparatively high annual revenue requirements

 

OnDeck is an efficient loan provider for businesses struggling to get a loan from their banks and credit unions. However, it only offers a fixed-fee structure that could work out more expensive than a traditional loan and requires frequent repayments. The company provides SBA PPP loans, revolving credit lines, and term loans up to $500,000 with variable rates.

Services

  • APR Range: 9% – 99%
  • Loan Amount: $5,000 to $500,000
  • Term Length: 3 to 36 months
  • Funding Time: Same business day

Requirements

  • Min. credit score: 600
  • Minimum time in business: 3 years
  • Minimum annual revenue: $100,000
  • Other: Business lien and personal guarantee
      • Daily or weekly repayments

Benefits

OnDeck allows you to receive funding quickly and has low entry requirements. They offer different types of loans and fixed-rate fees to keep things simple and transparent. It is also an SBA authorized lender.

Fees and restrictions

OnDeck charges a one-time origination fee between 2.5% and 4% that drops to 1.25% – 3% for regular customers. There is a $20 monthly maintenance fee for the lines of credit.
Customers can’t make early repayments and must not have filed for bankruptcy in the past 2 years. Restricted businesses: adult entertainment, drug dispensaries, firearms vendors, nonprofits, boarding houses, car dealers, government, horoscope, gambling, religious, and civic organizations.

 

Read The Full OnDeck Review

At a Glance

  • Invoice factoring loans up to $5 million
  • Instant loans in less than 12 hours
  • Low-rate SBA PPP loans
  • PPP loans up to $2 million with only 1% APR
  • Personal guarantee required
  • Short repayment terms result in high APRs

 

BlueVine is one of the fastest business loan providers available with some customers receiving cash within 10 minutes after approval. BlueVine also offers credit lines and SBA PPP loans. Get a 6 to 12-month loan or credit line of up to $250,000, or as much as $2 million on a PPP loan over 2 years with only 1% APR. Businesses with outstanding invoices can benefit from invoice factoring loans up to $5 million.

Services

  • APR Range: 15% – 78% (1% for PPP)
  • Loan Amount: $5,000 to $250,000 ($2 million for PPP)
  • Term Length: 6 – 12 months (24 months for PPP)
  • Funding Time: 10 mins (term loan) 12 to 24 hours (credit lines).

Requirements

  • Min. credit score: 600
  • Minimum time in business: 6 months
  • Minimum annual revenue: $100,000

Benefits

BlueVine is also one of the few small business loan companies that offer invoice factoring loans up to $5 million over 13 weeks to cover losses from clients who are slow to pay.
Lines of credit, SBA PPP, and short-term loans are all available, with cash delivered in as little as 10 minutes on term loans and 12 hours on credit lines.

Fees and restrictions

Not available in North Dakota, South Dakota, or Vermont.

 

Read The Full BlueVine Review

At a Glance

  • Flexible repayment terms
  • Additional products available via lender network
  • Loans of up to $5 million in working capital
  • Ideal for small businesses
  • Easy application process
  • Low credit scores accepted and requirements aren’t too strict
  • High fees and restrictive terms
  • Some additional fees

 

Biz2Credit is a company that provides direct financial products in the form of working capital loans, merchant cash advances, Small Business Administration loans, and commercial real estate loans. In addition to this, Biz2Credit can secure term loans and lines of credit via its network of partner loan providers. It has a particularly high rating due to its excellent customer service but has been criticized for charging above-average interest on its loans.

Services

  • APR Range: Varies according to lender
  • Loan Amount: $5,000 – $5 million
  • Term Length: 3-36 months
  • Funding Time: 24-48 hours

Requirements

  • Min. credit score: Variable, usually above 600
  • Minimum time in business: 6 months
  • Minimum annual revenue: Varies by lender ($100,000+)

Benefits

In addition to its direct services, Biz2Credit offers lines of credit and term loans via its network of partners. It has been praised as one of the best small business loan lenders for the high quality of its customer service.
Commercial real estate loans can be converted to SBA loans after an initial term which saves time and effort for your business.

Fees and restrictions

There are no fees for submission of application, but third-party providers may charge origination fees.

At a Glance

  • No minimum credit score
  • Quick, unsecured loans without the need for special documentation
  • Large loans available with low requirements
  • Quick approval time
  • Range of various loans available
  • Lack of fee transparency
  • Frequent payments required

 

Reliant Funding provides various loans for businesses including short-term, merchant cash advances, and equipment financing. Your company only needs to have been in business for one year or more and low credit scores are not a problem, although they will affect the loan’s APR. Reliant Funding charges unspecified fees as a percentage or multiplier depending on your business situation.

Services

  • APR Range: Variable
  • Loan Amount: $5,000-$500,000
  • Term Length: 6-18 months
  • Funding Time: 24 hours

Requirements

  • Min. credit score: N/A
  • Minimum time in business: 1 year
  • Minimum annual revenue: $120,000

Benefits

Reliant Funding provides secure business loans with comparatively high maximum borrowing amounts and no minimum credit score requirements.

Fees and restrictions

Reliant Funding charges an unspecified amount of origination and additional fees. There is a lack of information and transparency on its website when it comes to fees charged by the company.

 

Read The Full Reliant Funding Review

At a Glance

  • 100% invoice funding
  • Fast provision of credit (once implemented)
  • Lines of credit for B2C businesses
  • Quick application process
  • Great for small loans
  • Excellent customer service
  • A low limit for lines of credit
  • Higher fees than most

 

Fundbox provides loans based on certain evaluation criteria that involve creating an account and linking your third-party accounting software to its platform. It also requires companies to use one of its 12,000 compatible business bank accounts. Through this system, it provides loans based on its evaluation of the health of your business’ finances. The complex system is able to provide businesses with one of two products, a line of credit or a B2B trade credit loan.

Services

  • APR Range: 10.10% – 79.80%
  • Loan Amount: $1,000 – $100,000
  • Term Length: 12 or 24 weeks
  • Funding Time: ~ 24 hours

Requirements

  • Min. credit score: 500
  • Minimum time in business: No minimum
  • Minimum annual revenue: $50,000
  • Other: Connect your accounting software and bank
    account

Benefits

Businesses don’t need to provide collateral for loans. Customer service is rated as excellent and is available via multiple channels, including email, phone, and a support center.

Fees and restrictions

A minimum advance fee of 4.66%, with weekly payments. No prepayment penalty.

 

Read The Full Fundbox Review

At a Glance

  • 24-hour turnaround
  • Equipment financing available
  • Loans and lines of credit up to $500,000
  • Early repayment discounts
  • No collateral required
  • Quick and easy application
  • Fixed daily or weekly payments
  • Rates are expensive

 

National Funding is aimed at businesses looking for short-term business loans, merchant cash advances up to $500,000, or equipment financing between $5,000 and $150,000. Loans are payable over 15 months and equipment financing over up to 5 years. Collateral is not required but a personal guarantee is, along with a credit score of at least 600. Payments are fixed and must be made daily or weekly.

Services

  • APR Range: 15% to 30%
  • Loan Amount: $5,000 to $500,000
  • Term Length: 6 to 15 months
  • Funding Time: 24 hours

Requirements

  • Min. credit score: 600
  • Minimum time in business: 1 year
  • Minimum annual revenue: $100,000
  • Other: Three months of business bank statements
      • Most recent tax return

Benefits

  • National Funding is available to a broad range of different small businesses, including beauty salons, contractors, restaurants, construction, retail, and agriculture companies.
  • National Funding is still accepting PPP loan applications.

Fees and restrictions

National Funding charges an origination fee of 2% on their short-term loans and offers a 7% discount for prepayment.
No UCC lien for loans under $250,000.

 

Read The Full National Funding Review

Best Business Loans In 2020 At A Glance

  • LoanBuilder Best for companies wanting a small business loan
  • One Park FinancialBest business loans for bad credit
  • Fundera Best personalized loan for small-business
  • LendioBest for companies that need a specific type of business loans
  • OnDeckBest rates for a small business loan 
  • BlueVineBest for quick business loans
  • Biz2CreditBest commercial business loan supplier
  • Reliant FundingBest unsecured business loans with no minimum credit score
  • FundboxBest short-term loans
  • National FundingBest low-interest business loans

Types Of Business Loans

There are several different business loans, all with different terms of repayment and types of interests. You can find unsecured or secured loans, loans with weekly or monthly installments, loans for large purchases, line of credits, and specialized loans from niche lenders

Basic Term Loans (Short And Long Term)

Useful for a real estate or business purchase loan, expansion, or renovation. Involves a set amount of money (up to $600,000) and sets monthly payments typically over a one to five-year term (including 7%-30% interest). This can be arranged by banks or online lenders, although the latter attract higher interest rates, and the process is quicker and simpler.  

Benefits

    • A structured system
    • Covers a wide range of uses
    • Lower monthly payments
    • Long repayment terms    

Specialized lending

Specialized lending applies specifically to the corporate asset class. The borrower is an SPE (special purpose entity) and requires project, object, or real estate financing and has no other assets. The lender has considerable control over the project and any generated income.  

Other specialized loans could include cannabis business loans, which are particularly difficult to secure.

Small Business Administration (SBA) Loans

These loans, provided by the private sector and backed by the government, are specifically aimed at assisting small business startups. They also help to provide funding options and business loans for veterans. Terms and conditions vary depending on the size of the loan and the plans and needs of the organization.

An SBA loan will not be issued:

  • without collateral (pledging the company or personal assets)
  • if the business is a nonprofit organization 
  • if the business is not based in the US

Benefits 

The 7(a) Loan Program ($350,000-$5 million) is versatile and the funds can be used as loans to buy a business or real estate, finance equipment and supplies, or acquire an existing business.

The Microloan program ($10,000-$50,000) requires limited collateral and provides working capital to finance small purchases like inventory, supplies, furniture, and fittings.

The CDC/504 Loan Program (up to $5 million) for the purpose of expansion offers: 

  • 90% financing
  • Longer repayment terms
  • Fixed interest rate
  • Overall savings 

Merchant Cash Advances (MCA)

This is one of the most expensive forms of credit and should only be considered if the owner has had trouble applying for business loans elsewhere. Typically, if the business needs a small amount of cash in an emergency or for short-term needs, the lender offers a cash advance against future credit card sales. Daily payments are made to the lender from the business bank account with the repayment amount being dependent upon sales.    

Benefits

  • If business is slow, you pay less 
  • Does not require a high credit score
  • Can be approved within 24 hours

Invoice Factoring and Invoice Financing

A useful tool for business owners who need an advance to cover expenses and overheads while waiting for customers to pay their invoices. Invoice financing companies will usually cover up to 85% or 90% of your invoice value, retaining the extra 10% or 15% as collateral. Once the outstanding invoices are settled, this 10% is returned, minus the weekly processing fee of around 3%.

Benefits:

  • Takes as little as one day to organize the financing
  • The invoices act as the required collateral
  • Solves your short term cash-flow problems
  • Relatively risk-free

Peer-To-Peer Lending

Peer-to-peer lending involves borrowing money from other individuals or groups, with a third-party overseeing the transactions. Essential factors include presenting an agreement in writing, including a specific interest rate and repayment schedule.  

Benefits:

  • A lower interest rate and a flexible repayment plan
  • An interest in your progress and success

Business Lines Of Credit

Most suitable for small business owners, this one-year loan is paid directly into your business account to assist with cash flow. It’s specifically aimed at operating costs and daily needs rather than the purchase of equipment or buildings and can be renewed on payment of an annual fee.   

 Benefits:

  • Allows for emergency cash problems
  • Is considered low-risk, therefore, has a low monthly interest rate
  • Allows the principal amount to be paid at your convenience

What Is The Best Loan For A Small Business?

This will largely depend on your business’ particular needs and circumstances. 

Here are a few tips on how to choose a loan:

Evaluate Requirements

To choose the right type of loan you must first spend some time evaluating your business situation. Some businesses find it better to get loans from banks and credit unions if they can, others prefer non-banking financial institutions, such as lenders. 

Two important factors to consider are:

  • Your credit score
  • Debt to equity ratio

These two factors will determine which types of loans you qualify for and the terms you will receive. You can then decide how much you need and whether you need a lump sum (term loan, cash advance) or small amounts over a long period of time (line of credit). It’s important to go into the search with a clear idea of what you are looking for.

Get Quotes

Once you know what type of loan you need and how much, you can start collecting quotes from loan institutions. These are the details that you should evaluate in each quote:

  • Repayment term (how long you will pay it off)
  • Repayment schedule (daily, weekly, or monthly payments)
  • Interest rates (annual percentage rate (APR))
  • Additional fees (origination fees, penalties)
  • Requirements (collateral, personal guarantee, minimum revenue)

Fees and terms can be confusing and some lenders purposely make them unclear, so take some time calculating exactly how much you will be paying off in the long run. If you don’t do this, you may get tricked into paying off more than you expected, and it’ll be too late to change once you’ve taken out the loan.

Evaluate The Company

Before signing, make sure to do a decent background check on the company. Check its accreditations and read lots of online reviews to get a good idea of the lender’s reputation. If you come across any trouble, later on, you want to be sure that the lender has a good customer support service and will be on hand to help you out.

Covid-19 And Business Loans

Due to the COVID-19 crisis, some business loan lenders have been forced to temporarily suspend offering certain products. In some cases, existing lines of credit have even been recalled in light of a worsening situation.

In April, the government-funded Small Business Act (SBA) Paycheck Protection Program (PPP) fund ran dry, leaving many lenders unable to continue offering this product. However, a second-round has now become available and some SBA-approved lenders like Lendio and BlueVine have begun offering PPP loans for a limited period.

We will keep this page updated as the situation progresses and lenders begin to accept applications again. Unfortunately, unexpected changes to business loan interest rates and borrower requirements may affect our rankings but we’ll do our best to update these promptly

Summary

How Do Business Loans Work?

Business loans are offered by lenders to companies in exchange for an agreement to repay with interest. There are many different types of loans designed to support the various aspects of a business such as cash flow, real estate, equipment, and debt financing. 

New companies can generally benefit from startup business loans until such a time as they are making enough profit to sustain themselves independently. Larger businesses may need a business loan to expand into bigger premises or fund the development of a new project.

Business loans differ from personal loans as the business takes liability over the loan, making it less risky for the individual. However, having a higher personal FICO score can help to secure a loan.

FAQ

What is the easiest business loan to get?

Are small business loans hard to get? Not necessarily. Several companies exist specifically to help out young businesses. The easiest lenders to get a small business loan from are: Kabbage, BlueVine, Fundbox, and National Funding. These companies offer loans to companies that have been in business for less than a year and with minimal credit requirements.

Can I get a business loan with bad credit?

It is more difficult but not impossible to get a loan with bad credit. Certain companies specifically cater to businesses that need help with credit repair. The downside is that you will probably get bad terms and a high APR.

How do I qualify for a small-business loan?

For small businesses that are just starting out, it can be difficult to get any type of loan. Many lenders require you to have been in business for several years with a minimum annual revenue and credit score. However, the majority of lenders provide a quick and easy application form to let you know if you prequalify.

What’s the difference between a secured loan and an unsecured loan?

Secured loans require you to back the loan with collateral, like real estate or assets. If you default on the loan, the lender can repossess these assets. Unsecured loans don’t require backing but offer less favorable terms. To find the best business loans, always ensure you check the terms and rates carefully.