Small-Business Loans: Compare Financing and Apply
Summary
Small business loans: best offers of 2019 | % |
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Compare online offers of business loans for growing any businesses.
Small-business loans can be crusial to your success as a business holder, whether you’re stocking your shelves or expanding your footprint. You not must go to traditional bank to apply for funding. You have much better option: online lending.
We recommend you compare several financing offers to find the one that best fits your financing needs.
SBA loans
A loan funded by participating lending institutions and backed by the Small Business Administration.
SmartBiz – SBA loan
APR: 9.28-10.52%
SmartBiz’s low-cost SBA loans work best for established businesses that want to finance an expansion or refinance debt.
Qualifications
- Minimum credit score: 650.
- Minimum time in business: 2 years.
- Minimum annual revenue: $50,000.
- No bankruptcies or foreclosures in the past 3 years.
SmartBiz
Live Oak Bank – SBA loan
APR: 5.50-8.25%
Live Oak Bank’s SBA loans work best for established businesses looking to finance an expansion.
Qualifications
- Minimum credit score: 650.
- Cash flow must be able to support the debt.
- No bankruptcies or foreclosures.
- No outstanding tax liens.
Live Oak Bank
Invoice factoring
Upfront cash at a reduced value for your unpaid invoices or receivables.
BlueVine – Invoice factoring
APR: 15.00-68.00%
BlueVine’s invoice factoring works best for financing larger invoices, but only if your customers reliably pay on time.
Qualifications
- Minimum credit score: 530.
- Minimum time in business: 3 months.
- Minimum annual revenue: $100,000.
BlueVine
Fundbox – Invoice financing
APR: 10.10-78.60%
Fundbox offers invoice financing for businesses with unpaid customer invoices.
Qualifications
- Minimum credit score: 500.
- Minimum annual revenue: $50,000.
- Must use online accounting software that can link to Fundbox, such as QuickBooks, FreshBooks, Harvest, Clio, InvoiceASAP, Sage One, Kashoo or Jobber.
Fundbox
Equipment financing loan
Financing specifically for purchasing equipment.
Currency – Equipment financing
APR: 6.00-24.00%
Currency is an option for business owners looking to finance the purchase of new equipment.
Qualifications
- Minimum credit score: 585.
- Minimum time in business: 6 months.
- Minimum annual revenue: $75,000.
- Must have a net loss no greater than 10% over the past 12 months.
Currency
Online term loans
A loan repaid with interest over a set period of time.
BlueVine – Term loan
APR: 18.00-78.00%
BlueVine’s term loan works best for newer businesses that need short-term funding.
Qualifications
- Minimum credit score: 600.
- Minimum time in business: 6 months.
- Minimum annual revenue: $100,000.
BlueVine
Credibility Capital – Online term loan
APR: 10.00-25.00%
Credibility Capital offers low-cost business loans that work best for small-business owners with strong credit.
Qualifications
- Minimum credit score: 680.
- Minimum time in business: 2 years.
- Minimum annual revenue: $250,000.
- No bankruptcies in the past 5 years.
Credibility Capital
Funding Circle – Online term loan
APR: 11.67-36.00%
Funding Circle is an option for established businesses that are financing an expansion or refinancing debt.
Qualifications
- Minimum credit score: 620.
- Minimum time in business: 2 years.
- Minimum annual revenue: None.
- No bankruptices in the past 7 years.
Funding Circle
OnDeck – Online term loan
APR: 9.00-99.00%
OnDeck offers a fast term loan for small-business owners with less-than-stellar credit who want to expand.
Qualifications
- Minimum credit score: 600.
- Minimum time in business: 1 year.
- Minimum annual revenue: $100,000.
- No bankruptcies in the past 2 years.
OnDeck
QuarterSpot – Online term loan
APR: 30.00-70.00%
QuarterSpot’s short-term business loans provide a financing option for borrowers with poor credit, but at high rates.
Qualifications
- Minimum credit score: 550.
- Minimum time in business: 2 years.
- Minimum annual revenue: $200,000.
- Average at least 10 monthly revenue-producing deposits.
- Minimum $2,000 average daily account balance.
QuarterSpot
StreetShares – Online term loan
APR: 9.14-39.99%
StreetShares offers a business term loan for newer businesses that need to finance an expansion.
Qualifications
- Minimum credit score: 600.
- Minimum time in business: 1 year.
- Minimum annual revenue: $25,000.
- No bankruptcies in the past 3 years.
StreetShares
Small-business loans
Small-business loans are typically issued only for businesses with a year or more of history and revenue. Among the financing options for entrepreneurs who qualify are U.S. Small Business Administration loans, term loans, business lines of credit and invoice factoring.
Types of loans for established small businesses
SBA loan
The government-guaranteed SBA loan program works with banks to offer low interest rates and long-term repayment. But the process is time-consuming, and the requirements are strict. Only those with good personal credit (690 or higher, although some SBA lenders may have lower score requirements), strong business finances and the flexibility to wait for funding should apply.
- Loan amounts: $30,000 to $5 million.
- Approximate APR range: 6% to 11%.
- Good for large one-time and longer-term investments, purchasing real estate or equipment, buying existing businesses and refinancing debt.
Business term loan
Online lenders offer term loans of up to $500,000. For a short-term loan, the repayment period typically ranges from six to 12 months, while a long-term loan repayment can extend up to 10 years or longer in some cases. Business owners can also find financing that can be used for specific items, like equipment or inventory.
- Loan amounts: Up to $500,000.
- Approximate APR range: 9% to 99%.
- Good for large one-time investments.
Business line of credit
A business line of credit provides access to flexible cash. Lenders give you access to a specific amount of credit (say, $100,000), but you don’t make payments or get charged interest until you tap into the funds.
- Credit line range: $2,000 to $250,000.
- APR range: 8% to 99%.
- Good for managing cash flow, handling unexpected expenses and financing short-term business needs.
Invoice factoring and invoice financing
Invoice factoring turns business owners’ unpaid invoices into immediate cash. You sell the invoices to a factoring company, which is paid when it collects from your customers. If you prefer to maintain control over your invoices, invoice financing is an alternative to factoring.
- Financing amounts: Up to $5 million.
- APR range: 10% to 79%.
- Good for managing cash flow, short-term financing.
Why online lenders?
Only about 1 in 5 businesses that apply for a loan from a big bank are approved. We help business owners by working with online lenders that simplify the loan application process and approve more small businesses. Many online lenders also offer competitive rates and faster funding than some banks.
Small-Business Loans: Compare Financing and Apply
Compare online offers of business loans for growing any businesses. Small-business loans can be …
