Does Discover Offer Business Loans? What You Need to Know

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Discover Business Loans: An Overview

For any small business owners looking to fund their businesses with Discover business loans, we’ll get the bad news out of the way first—Discover doesn’t offer business loans.

However, there’s plenty of good news, as well—in fact, there are tons of premium business lenders out there vying to fund your small business.

All in all, even though you might have been hoping to fund your business with a Discover business loan, there are plenty of wonderful small business lenders out there to fill the space that Discover’s offerings don’t quite fill. And you’re in the right place to learn about them.

Let’s see the best game plan for small business owners who are wishing that there were such things as Discover business loans.

The Rundown on Discover Business Loans

Though the short answer to the question of whether Discover business loans exist is, well, no, it’s still helpful to learn about what kind of loans Discover does offer, along with which companies do offer business loans to small businesses.

With this guide, instead of just leaving you to move forward on your own after learning that Discover business loans aren’t an option, we’ll guide you through next steps for finding the best alternative for funding your business.

Here’s your ultimate guide to moving forward after learning that Discover doesn’t offer business loans.

The Types of Loans Discover Offers

First thing’s first, let’s take a moment to cover what kinds of loans Discover does offer.

If you really want to work with Discover, can one of the 3 types of loans they offer meet your needs?

Let’s take a look.

Discover Personal Loans

To start, Discover offers personal loans for a variety of applicable uses.

From helping to finance your wedding and your vacation to allowing you to concolidate higher interest debt, Discover’s personal loans can help you fulfill a wide range of financial needs.

These personal loans will come with a fixed term and a fixed interest rate, and you won’t be charged an origination fee, as well. Plus, in most cases, you’ll be able to get a same-day decision back from Discover on what personal loan terms you qualify for.

All in all, as far as personal loans go, Discover personal loans are some of the best.

Discover Student Loans

Discover also offers student loans that can be used towards all levels of higher education along with consolidating other educational debt. They offer student loans tailored for the following educational ends:

If you’re searching for solutions to costly educational fees, then Discover could be the answer to your financial woes.

Discover Home Equity Loans

Last but not least, Discover offers home equity loans. These loans will take your home equity as a form of collateral in order to provide more ideal terms to borrowers.

What is home equity, you ask?

Basically, home equity is the value of your home that you’ve paid off. The way to calculate your home equity is your home’s worth minus how much you owe for your mortgage.

With this property as a form of collateral, Discover is able to offer the following premium terms on their home equity.

  • Loans from $35,000 to $150,000
  • Repayment terms of 10, 12, 15, or 20 years
  • Fixed interest rates as low as 5.49% APR
  • No application or origination fees
  • No cash required at closing

If you’re a homeowner looking for premium rates on a personal loan, then Discover’s home equity loans could be your perfect funding solution.

Why Get a Business Loan Instead of a Personal Loan?

Though Discover doesn’t say outright that you can’t use one of their personal loans for business expenses, it’s pretty much understood that, despite the ideal terms they’re able to offer, these personal loans are far from optimal for business use.

Especially when you consider all of the business loans out there that are tailored specifically for common business financial needs, you’ll understand why business owners tend to opt for business loans over personal loans when it comes to funding their business’s expenses.

From financing outstanding invoices to having a line of credit at the ready in your back pocket for working capital, there’s probably a business loan out there tailored specifically for the financial situation you’re looking to address with a loan.

As such, it’s important you get a look at all of your funding options to make sure you’re making the very best choice for your business when it comes to funding with a business loan. Though this might seem daunting, we’re here to help.

So that you can get a good idea of what the business lending industry has to offer, we’ve whittled down a list of the 11 best lenders who do provide business loans.

Who Does Offer Business Loans?

The personal loans, student loans, and home equity loans that Discover offers are pretty nice, but they’re unfortunately not of much help if you’re looking specifically for a business loan. And now that we’ve combed through all of the loans that Discover does offer, you’re probably wondering where you can find an actual business loan.

Luckily, though Discover business loans don’t exist, there are plenty of lenders out there hoping to fund your business.

If you’re looking for low-rate and long-term funding, there are some best banks for business loans to pursue. Our recommendations? Check out the following: Bank of America business loansTD Bank business loansSuntrust business loans, or Capital One small business loans.

While bank loans are some of the top options available to small business owners, they can be tough to qualify for. For many small business owners, alternative lenders offering more flexible and easier-to-qualify for financing is a better bet.

Let’s take a look at the top 11 small business lenders for you to look into.

BlueVine

First up, the online lender BlueVine is a top business loan company that offers not one but two types of business loans—a short-term line of credit and an invoice financing product.

Their short-term line of credit, which they call Flex Credit, offers working capital to business owners looking for revolving funds for their business. This BlueVine product comes with the following ranges of terms:

  • Credit limits from $6,000 – $150,000
  • Term lengths of either 6 months or 12 months
  • Interest rates from 18.20%

BlueVine’s eligibility requirements for their line of credit are the following 3 qualifications:

  • A personal credit score of 600+
  • At least 6 months in business
  • At least $120,000 in annual revenue

On the other hand, their invoice financing product offers advances to small businesses that are patiently awaiting outstanding invoices from customers. This product comes with the following ranges of terms:

  • Loan amounts from $20,000 to $2.5 million
  • Term lengths from 1 to 12 weeks, depending on your invoice’s payment term
  • Weekly discount rates from .4%

You’re eligible for BlueVine’s invoice financing product if you can check of these 3 boxes:

  • A personal credit score of 530+
  • At least 3 months in business
  • At least $100,000 in annual revenue

Celtic Bank

Next up on our list of top business lenders is Celtic Bank. This bank is an approved lender that disburses SBA loans to small businesses.

Their SBA loans will come with all of the characteristics perks of this funding type—large loan amounts, long repayment terms, and low interest rates.

Let’s look at the exact ranges of terms they’re able to offer:

  • Loan amounts from $25,000 to $150,000
  • Term lengths of 10 years
  • Rates that start at 7%

That said, Celtic Bank’s business loans will also come with the characteristic restrictive requirements that SBA loans tend to come with.

In order to be eligible, you’ll need to fulfill these 3 minimum requirements:

  • A personal credit score of 640+
  • At least 2 years in business
  • At least $50,000 in annual revenue

If you’re able to qualify for an SBA loan from Celtic Bank, this is one of the most affordable, long-term business loans on the market.

Fundation

Another top business lender that offers loans to small businesses is Fundation. This lender offers a term loan with terms that rival traditional term loans that bank offers. However, due to their automated processes, Fundation, is able to fund applications much quicker than banks, and often in as little as 2 business days.

Here are the ranges of loan terms that Fundation is able to fund so quickly:

  • Loan amounts from $20,000 to $500,000
  • Term lengths from 1 to 4 years
  • Rates that start at 7.99%

That said, because their terms are so ideal, Fundation is often only able to fund customers that are highly qualified with the following stats:

  • A personal credit score of 620+
  • At least 2 years in business
  • At least $100,000 in annual revenue

Fundbox

The next business lender on our list, Fundbox, specializes in funding small businesses through invoice financing.

Their invoice financing product comes with the following ranges of terms:

  • Loan amounts anywhere from $100 to $100,000
  • Term lengths from 3 to 6 months
  • Rates that start at 0.5% of the original invoice value per week

Even better, Fundbox is one of the most accessible business lenders out there. All you’ll need to eligible for Fundbox invoice financing is at least 3 months in business, and that’s it.

Funding Circle

Another top business lender on our list is the international peer-to-peer lending company Funding Circle.

Funding Circle offers a term loan with monthly repayments that’s structured similarly to the term loans that traditional bank lenders.

Here are the terms that Funding Circle’s term loans tend to come with:

  • Loan amounts from $25,000 to $500,000
  • Term lengths from 6 months to 5 years
  • Rates that start as low as 4.99%

That said, in order to be eligible for one of these top-of-the-line term loans from Funding Circle, you will need to fulfill a few requirements:

  • A personal credit score of 660+
  • At least 2 years in business
  • At least $150,000 in annual revenue

Headway Capital

The business lender Headway Capital specializes in offering a business line of credit to small businesses who need a source of working capital with revolving funds.

Headway Capital’s lines of credit typically carry the following terms:

  • Credit limits ranging from $5,000 to $50,000
  • Term lengths from 1 to 2 years
  • Rates that start at 40% APR

Plus, all you’ll need to access the revolving working capital that Headway Capital provides with its lines of credit are the following qualifications:

  • At least 6 months in business
  • At least $50,000 in annual revenue

Kabbage

Next on our list of top business lenders is Kabbage, another lender who specializes specifically in business lines of credit.

Kabbage’s lines of credit typically come with the following ranges of terms:

  • Credit limits from $2,000 – $150,000
  • Term lengths of either 6 months or 12 months
  • Monthly flat fees of 1.5% to 10% of your remaining loan amount

Not to mention, you’ll just need to fulfill 2 minimum requirements in order to be eligible for one of Kabbage’s business lines of credit:

  • At least 1 year in business
  • At least $50,000 in annual revenue

Lending Club

The next top lender, LendingClub, specializes in a fixed-rate installment term loan that fully amortizes and has no prepayment penalty.

The term loan that LendingClub funds small businesses with typically comes with the following ranges of terms:

  • Loan amounts from $5,000 to $300,000
  • Term lengths from 1 to 5 years
  • Rates that start at 5.99%

But to access loan terms this attractive, you will have to fulfill a few minimum qualifications:

  • A personal credit score of 620+
  • At least 2 years in business
  • At least $75,000 in annual revenue

OnDeck Capital

The next lender on our list OnDeck Capital, is one of the few business lenders who offers multiple business loan products. OnDeck offers both a short-term loan and a business line of credit to small business looking for business loans.

Starting with their short-term loan product, you’ll be able to access the following terms with OnDeck:

  • Loan amounts from $5,000 to $250,000
  • Term lengths from 3 months to 2 years
  • Rates that start at 8.5% APR

For OnDeck’s short-term loan product, you’ll have to check off the following boxes to be eligible:

  • A personal credit score of 500+
  • At least 1 year in business
  • At least $100,000 in annual revenue

On the other hand, through their business line of credit, OnDeck offers the following ranges of terms:

  • Credit limits from $5,000 to $100,000
  • Term lengths of 6 months
  • Rates that start at 13.99% APR

In order to access OnDeck’s line of credit product, you’ll need to make sure you fulfill the following minimum requirements:

  • A personal credit score of 600+
  • At least 9 months in business
  • At least $100,000 in annual revenue

LoanBuilder, a PayPal Company

The second-to-last lender on our list of top business lenders is LoanBuilder, a PayPal Company. These loans will typically carry the following terms:

  • Loan amounts from $10,000 to $500,000
  • Term lengths from 3 months to 12 months
  • Factor rates that start at 1.025

To be eligible to fund your business with LoanBuilder, you’ll need to meet the following 3 minimum requirements:

  • A personal credit score of 550+
  • At least 9 months in business
  • At least $42,000 in annual revenue

The Business Backer

Last but certainly not least, the business lender The Business Backer offers a line of credit product that they call the FlexFund Line of Credit.

Through this product, you’ll be able to access the following term ranges:

  • Credit limits from $5,000 to $240,000
  • Term lengths from 4 to 18 months
  • Factor rates that start at 1.12

To be eligible for the FlexFund Line of Credit, you’ll need to make sure that you’ve got the following minimum requirements covered:

  • A personal credit score of 530+
  • At least 1 year in business
  • At least $200,000 in annual revenue

Frequently Asked Questions

The Bottom Line

There you have it—all of the very best lenders that actually do offer business loans.

We know, it’s a lot of information to take in. But we didn’t want to leave you hanging with a simple “no” to your question of whether or not Discover business loans exist.

If one of these business lenders sounds like the perfect fit for your business financing needs, then you’re just that much closer to getting the loan that you need.

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Vice President and Founding Editor at Fundera

Meredith Wood

Meredith Wood is the founding editor of the Fundera Ledger and a vice president at Fundera. She launched the Fundera Ledger in 2014 and has specialized in financial advice for small business owners for almost a decade. Meredith is frequently sought out for her expertise in small business lending. She is a monthly columnist for AllBusiness, and her advice has appeared in the SBA, SCORE, Yahoo, Amex OPEN Forum, Fox Business, American Banker, Small Business Trends, MyCorporation, Small Biz Daily, StartupNation, and more. Email: meredith@fundera.com.
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