Do you need a loan for your small business but don’t know where to start? You’re not alone. Many small business owners often have a difficult time securing loan funds from traditional lenders. But don’t despair – there are plenty of other financing options to explore. In this post, you will learn where to get a loan for your small business quickly and easily.
How to Choose the Best Small Business Loans
If you google ‘where to get a loan,’ you will get plenty of small business financing options, making it challenging to pick the best business term loan (or any other type of loan) to apply for.
Here are a few tips to help you choose the best small business loan:
- Know your financial health (credit score, profit & loss statement, etc.) to assess where you stand financially
- Get detailed information about how small business loans work (different loan types, interest rate, terms & conditions for repayment, application fees, etc.)
- Compare your options to finalize the top three lenders
- Apply for a loan. Once your application is approved, read the terms and conditions of the loan agreement carefully
Small business loans generally don’t charge a prepayment fee. But you should always check with your lender. Even some lenders offer discounts if you pay the loan early.
Where to Get a Small Business Loan
We have prepared a list of the top business lenders to help you pick the right option to get a business loan.
Let’s dive in:
1. Fundera
Fundera is not a lender itself, but a marketplace. Small business owners can choose from a wide range of SBA loans, business loans, and lines of credit. With Fundera, you can compare multiple small business financing options in one place.
- Best for: SBA loans
- Terms: Up to 25 Years
- Loan Amounts: Up to $5M
- Rates: Starting at 6%
- Minimum Credit Score: Depends on the Individual Lender
- Fees: Zero
The above specifics apply to SBA loans only. For the details of any other loan program, visit the company’s website.
2. Small Business Administration
Small Business Administration (SBA) loans, partially guaranteed by SBA, allow you to borrow money to meet any unexpected expense, buy equipment, do debt refinancing, purchase commercial real estate, or more.
To apply for SBA loans, you will have to reach out to SBA approved lender in your area.
- Best for: All Small Business Owners
- Terms: Up to 25 Years
- Loan Amounts: Up to $5.5 Million
- Rates: Up to 13%, Depending on the Loan Type
- Minimum Credit Score: Depends on the Lender
- Fees: Varies
Due to low-interest rates and long repayment terms, SBA loans are the most desirable loans on the market.
3. Bluevine
If your business experience a shortage of working capital for a few months in a year, a line of credit from Bluevine can be ideal for you to get business funding in those tough times.
You need to have $10,000 in monthly revenue to be eligible for applying for a line of credit.
Here are key features of Bluevine’s line of credit
- Best for: Line of Credit
- Terms: 6 or 12 Months
- Loan Amounts: $250K
- Rates: 4.8%
- Minimum Credit Score: 625
- Fees: No Fees for Prepayment or Early Payment
4. Kabbage
If you’re looking for a business line of credit, Kabbage is a suitable option. You will pay monthly interest on the loan amount you will use from your credit limit.
- Best for: Line of Credit with Flexible Payment Options
- Terms: 6 to 18 Months
- Loan Amounts: Between $1,000 and $150,000
- Rates: 0.25% to 2.50% for 18-Month Term
- Minimum Credit Score: 640
- Fees: No Hidden Loan Fees or Prepayment Penalties
5. Kiva
Small businesses looking for crowdfunding loans will find Kiva the right financing partner.
The company’s community has paid around $1.6 billion in loans so far.
- Best for: Financially Excluded Business Owners
- Terms: 12 to 36 Months
- Loan Amounts: Up to $15,000
- Rates: 0%
- Minimum Credit Score: No Information on the Website
- Fees: 0%
6. Credibly
Credibly is a leading financial institution offering working capital loans, merchant cash advances, long-term business loans, business lines of credit, and other loan solutions to business owners.
Being one of the leading online lenders, Credibly offers prepayment incentives.
Here are details about business expansion loans collected from reliable sources:
- Best for: Businesses Looking Forward to Expanding
- Terms: 18-24 Months
- Loan Amounts: Up to $250,000
- Rates: As Low As 9.99%
- Minimum Credit Score: Over 500
- Fees: Not Available
7. National Funding
National Funding offers various loans and financing options to small business owners, including small business loans, working capital loans, short-term business loans, equipment financing and leasing, and more.
The best thing about National Funding’s loans is you can get a discount if you make total debt payments early.
Here are specifics about National Funding equipment financing collected from credible resources on the web:
- Best for: Businesses Who Can Pay Early
- Terms: 2-5 Years
- Loan Amounts: Up to $150,000
- Rates: Starts at 1.10
- Minimum Credit Score: 600
- Fees: Varies
8. OnDeck
OnDeck offers different loan solutions that business owners can avail of, based on their credit history.
A term loan from OnDeck is an excellent option to meet unexpected expenses in your business.
Here are key details to apply for term loans:
- Best for: Easy Approval Loan Approval
- Terms: Up to 24 Months
- Loan Amounts: Up to $250,000
- Rates: 29.9% Annual Percentage Rate (APR)
- Minimum Credit Score: 600
- Fees: Origination fee 0%-5%
9. Quick Bridge
QuickBridge offers a wide range of loans, including small business loans, short-term loans, working capital loans, and unsecured loans.
Even if you have a bad credit, you may get a loan from the company.
There is not much information on Quick Bridge website about its loan products.
The following details have been gathered from reputed online resources:
- Best for: Working Capital Loan
- Terms: 4-24 Months
- Loan Amounts: Up to $500K
- Rates: Not Available
- Minimum Credit Score: 500
- Fees: Origination Fee Amount Not Disclosed
10. Happy Money
As a small business owner, if you want to clear your credit card bill, a payoff loan from Happy Money can be an ideal fit.
- Best for: Personal Loans to Clear Credit Card Loans
- Terms: 2-5 Years
- Loan Amounts: Up to $40,000
- Rates: Up to 24.99% APR
- Minimum Credit Score: 600
- Fees: 0% to 5% Origination Fee
11. Fundbox
Fundbox is known for offering a line of credit with flexible repayment terms.
In addition to that, Fundbox recently added Fundbox Term Loan, Fundbox Flex Pay, and Fundbox Plus to its portfolio.
The following are specifics for the Fundbox line of credit loan:
- Best for: Line of Credit
- Terms: 12 Weeks to 24 Weeks
- Loan Amounts: Up to $150K
- Rates: Starts at 4.66%
- Minimum Credit Score: 600
- Fees: None
12. Lendio
Being a leading marketplace for various loan products, Lendio can match you with the right business debt solution based on your credit report.
The company offers business lines of credit, short-term loans, merchant cash advances, equipment financing, SBA loan, and startup business loans from partner financial institutions.
- Best for: Startup Business Owners
- Terms: Depends on the Loan Type
- Loan Amounts: Depends on the Loan Type
- Rates: Not Available
- Minimum Credit Score: Depends on the Lender
- Fees: Not Available
One single Lendio loan application will enable you to reach 75+ lenders.
FAQs for Small Business Loans
How Much Money Do You Need to Get a Loan for a Business?
You may need $3500 to $12000 (or more) monthly revenue to get a loan for a business. The exact revenue amount varies, depending on the lender and the type of the loan.
In some cases, you may require to pay 5% or less down payment to get a loan.
Is It Difficult to Get Small Business Loans?
With poor personal credit history and no proof of stable income, it can be challenging to get a traditional business loan.
However, many alternative small business lenders can offer you a business loan by seeing your business plan, cash flow statement, profit, and loss statement, and a few other documents.
What Are the Easiest Loans to Get Approved for?
Small business microloans are the easiest to get approved for.
To get a small business microloan, you may need to submit your small business loan application, business and personal credit profile, business financial statements, and a few other documents, depending on the lender.
What Are Some Alternative Ways to Fund a Small business?
Some alternative ways to fund a small business are business credit cards, small business grants, crowdfunding, venture capital, personal business loans, merchant advance, and loans from friends or family members.
What Do You Do If You Are Denied a Small Business Loan?
You usually have six months from the date your application was denied to reapply for a traditional bank loan.
If small business lenders have also denied your application for a business term loan, you can explore alternative financing options, such as accounts receivable financing or invoice factoring.
Conclusion
Now you know where to get a small business loan if you have been denied a traditional business loan due to a lack of personal assets /business assets for a collateral, or excellent credit history.
Most small business loans offered by the lenders mentioned above don’t require a personal guarantee. And you will have a flexible way to pay interest in the form of weekly or monthly payments, depending on the lender and the type of a loan you’re applying for.
Get the best small business loan that complements how your business operates and start growing your business.
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This article, “Where to Get a Loan for Your Small Business” was first published on Small Business Trends
