Some business loans are simply easier and quicker to apply for than others. The level of accessibility for different funding options definitely depends on what kind of small business loan you’re hoping to secure, and the lender you’re planning on going through.
To dive right in, here’s a list of the best lender options for borrowers looking for easy business loans:
Ready to get into the details? Learn everything there is to know about these lenders of easy business loans below.
|Lender||Best For||Loan Products|
Medium-term funding up to $250,000
Line of credit
Large short-term loans
Short-term loan, merchant cash advance
Short-term funding up to $100,000
Line of credit, invoice financing
Easy-to-acquire equipment financing
Short-term loan, equipment financing
Variety of easy-to-acquire loan options
Short-term loan, invoice factoring, line of credit
Here are the fundamentals on the lenders that offer the easiest business loans to acquire. We’ll touch on the loan products they offer, their qualification standards, and how much funding you can get from them. Keep in mind that sometimes, the easiest loans to get come with the highest rates because convenience can come at a cost.
Kabbage is a purveyor of business lines of credit. With a Kabbage line of credit, you can receive anywhere between $2,000 and $250,000 on a loan term between six-18 months. Interest rates for Kabbage range from 1.5% to 10% per month.
What makes Kabbage such an easy business loan to apply for is that there’s no paperwork involved and you can receive funding in as little as 24 hours. All you have to do to get started is connect your business bank account and other business accounts to your Kabbage application.
Kabbage will then review your financial history via your accounts to make a decision. You will find out whether you are approved or denied within minutes, making this a very good lender to work with to get an easy business loan.
To qualify for a Kabbage line of credit, you’ll need to meet the following requirements:
There are no minimum credit score requirements with Kabbage. However, you’ll need a minimum average bank balance of $2,500.
Repayment is monthly and debited directly from your business bank account.
Rapid Finance (formerly Rapid Advance) is an alternative lender that offers three types of short-term loans: Standard, Select, and Preferred loans.
Their Standard loan ranges from $5,000 to $1 million with a 1.16 to 1.30 factor rate and terms ranging between four months and one year. Their Select loan can range from $15,000 to $1 million with a factor rate from 1.12 to 1.31 and terms ranging from six to 15 months.
Lastly, their Preferred loan ranges in amount from $15,000 to $500,000 and comes with factor rates from 1.11 to 1.25 and terms from nine to 18 months.
Rapid Finance also offers a merchant cash advance product with loan amounts between $5,000 and $500,000 with factor rates starting at 1.22.
What makes Rapid Finance an easy business loan purveyor is right there in the name: they’re quick to fund. On average, you can receive funding in as little as two days, making this a great lender for those that need a large amount of financing quickly.
You also don’t have to put up collateral with Rapid Finance, and they offer a prepayment discount. Keep in mind though that you’ll have to pay back Rapid Finance with daily or weekly payments, which could put a dent in your cash flow.
Fundbox is a line of credit provider that’s similar to Kabbage, albeit with lower funding amounts and shorter terms. Through Fundbox, you can acquire between $1,000 and $100,000 on a 12-24 week term. Interest rates on the line of credit product start at 4.66% for a 12-week repayment plan. When you convert this into a weekly rate, it ends up costing 0.5% to 0.9% of the drawn amount per week.
For example, if you borrow $5,000 for 12 weeks, you’ll pay between $25 to $45 each week for 12 weeks. This amount will automatically be debited from your business bank account.
Fundbox also offers an invoice financing product with similar terms.
Similar to Kabbage, to apply for financing from Fundbox, you must connect your accounting software or business bank account to their system. Based on the data provided in your accounts, Fundbox will either approve or deny your application.
If you’re approved, you can receive funding within 24 hours, and make repayments through the funds already available in your business bank account. This type of convenience makes Fundbox a very easy business loan lender to work with.
National Funding is our next recommendation for lenders that provide easy business loans. With National Funding, you can acquire up to $500,000 for a short-term loan or as equipment financing. Their business loans are designed for business owners who can’t get a loan from a bank, and their minimal qualification standards make them very accessible.
Their loan products come with a six-15 month terms and factor rates between 1.17 and 1.36.
To apply, you’ll simply have to fill out an online application. Once National Funding reviews your application, they will perform a soft credit pull on your personal credit score. The entire application process takes between one-three business days. If you qualify, you’ll either have a daily or weekly repayment schedule.
The main benefit of National Funding is that they offer fast access to capital and an easy application process. What’s more, National Funding offers a 7% prepayment discount if you pay back the loan early, within 100 calendar days of receiving the funds. The discount is 6% for equipment financing customers.
Similar to Rapid Finance, the disadvantage with National Funding is that you will be subjected to daily or weekly payments. Their factor rates are also quite high.
The qualification requirements for National Funding are as follows:
To apply, you’ll also need three months of bank statements and a minimum bank balance of $1,500. National Funding also requires a personal guarantee from the borrower.
BlueVine is our fifth and final option for an easy business loan, and we recommend it because it offers the largest variety of loan products. Through BlueVine, you can acquire a line of credit, short-term loan, or invoice factoring.
With a term loan or line of credit from BlueVine, you can secure loan amounts between $5,000 and $250,000 on terms of up to one year. Their invoice factoring product can advance you up to $5 million on terms between one and 13 weeks. BlueVine charges interest rates between 4.8% and 51%.
Aside from flexibility, BlueVine can also fund in as little as two business days, and there is no minimum bank balance requirement. What’s more, a bankruptcy doesn’t disqualify you from qualifying for this loan.
For these reasons, BlueVine is an excellent lender for those looking for easy business loans and a variety of different types of financing.
To qualify for invoice factoring from BlueVine, you’ll need to meet the following requirements:
The requirements for short-term loans and lines of credit are a bit more stringent:
Now that we’ve provided you with different lenders that offer easy business loans, we should touch on how we selected them. There are a variety of factors that we considered when determining the lenders that provide easy business loans. They are as follows:
The easier the lender’s qualification standards, the easier it is to acquire financing. Therefore, we picked out lenders with low credit score, annual revenue, and time in business requirements.
Another common thread with all our lenders is how quickly they could provide your business with financing. If a lender can approve your loan application quickly, this makes them easy to work with.
All of our lenders don’t require very involved application processes. With most, you can complete the application online in a matter of minutes.
In our evaluation, we looked for lenders that provide high loan amounts while not being particularly difficult to qualify for. Having a lender that is easy to work with and provides large loan amounts can be a huge benefit to a small business.
Generally speaking, the easier it is to acquire funding from a lender, the higher the cost of capital. This is because highly accessible funding usually carries a greater risk for the lender. After all, the lender is making their funding available to a subset of business owners who may not be able to secure other forms of financing (which is why they are pursuing easy business loans in the first place). For this reason, lenders mitigate their risk by charging higher rates.
We’ll talk more about cost of capital in the next section.
With all the lender choices available, how do you know if it’s the right move to take on debt in the form of an easy business loan?
Though easy business loans don’t often offer ideal terms, they’re a quick and easy funding option. Let’s take a look at when it’s the right choice to take this type of financing.
If an easy small business loan is the only type of loan that you qualify for, then it’s time to think realistically about the nature of the loan.
Taking on debt is a huge decision, even more so when the debt is as expensive as easy business loans normally are. As such, you’re going to need to ask yourself if this easy business loan is completely necessary for you to take. If it is, and it’s the only option you qualify for, and you feel confident that you will be able to pay it back, then you should move forward with an easy business loan.
In many cases, an easy business loan now could be a stepping stone to better, longer (and harder to qualify for) business loans in the future—granted that you use the first, easy small business loan responsibly and improve your qualifications.
Even if you and your business are qualified to borrow, you might find yourself in a bind that requires quick capital.
Maybe you’re seeking funding for an exciting but time-sensitive opportunity or maybe you’ve had a business emergency. Whatever the reason for urgency, an easy business loan might be the only option quick enough to meet your needs.
In this case, you should again take a moment to consider if the quick extra capital that this easy business loan promises is totally necessary.
Can you wait a little longer? If not, move forward with securing your easy business loan, use it to solve your immediate funding needs, and re-evaluate for refinancing in the future.
Now that we’ve explored the situations in which you should opt for an easy business loan, it’s time to take a look at situations in which you shouldn’t.
If you have any other option besides an easy business loan, you should probably choose that alternative.
But let’s get into more detail. Here are two very broad scenarios in which you shouldn’t take on this type of debt.
Unless you’re unable to qualify for a loan with better terms or you’re unable to wait a bit to secure your loan, then you should choose another, less expensive funding option.
With easy business loans, lenders likely know that you don’t have many other options. As such, you typically pay a large amount in interest due to this lack of choice.
Remember, easy business loans are accessible business loans—meaning less qualified borrowers have options. And because the lender has less confidence that you’re a strong borrower who can definitely repay the loan, they’ll charge more in interest to compensate for this risk.
So, if you have another, less expensive funding option, then you should definitely choose that over any easy business loan.
If you realize that an easy business loan is your only option, then we suggest that you take this opportunity to step back and rethink whether you really need this business funding.
Taking on debt is a big decision, and taking on expensive debt is an even bigger decision.
If you feel strongly that you do need to accept an easy business loan, then take it on knowing full well what you’re getting into.
However, if you decide the capital is not crucial to your business right this moment, take your time to explore your other business loan options to find the right solution.
Only you can decide where you stand on easy small business loans. But keep in mind that any business loan you acquired easily is probably going to be pretty expensive, even if it comes from our list of lenders.
As such, if you have any option other than taking out an expensive, easy business loan, then we suggest you take that option. If you have the time, spend it looking for cheaper funding options. If you don’t have the time, at least take a moment to be sure you’re fully aware of what you’re getting yourself into when you take on debt with an easy business loan to make sure your business will be able to pay it off.
If you take out an easy business loan with one of our approved list of lenders, you’ll at least be putting your best foot forward.