Compare Your Small Business Loan Options

Let's Get Started

Explore the best small business loans and find the right fit for your business’s needs.

At some point in the lifecycle of your business, you’ll need access to financing—whether to cover cash flow, expand your team, cover an emergency, purchase equipment, or for a different purpose altogether. Small business loans can offer you the capital you need to run and grow your business.

Use this guide to learn more about the business loans and best lenders offering them.

Where to Get a Small Business Loan

Traditionally, you could only get business loans from established banks. These loans offer the best rates and terms but also require lengthy processes and the highest qualifications—making it difficult for many small business applicants to get the funding they need. Today, however, between banks, government-guaranteed loans, and alternative, online lenders, there are now more options than ever for small businesses to get access to capital.

Expand to See More

Best Small Business Loans and Lenders in 2021

Compare the top loan options and lenders to see what’s right for you.

SBA Loans

SBA loans are government-guaranteed term loans that allow lenders to offer low-interest rates to business owners who might not qualify for a bank loan.

coins with dollar sign
AmountTermsRatesSpeed
$5K - $5M5 - 25 YearsStarting at 6%As fast as 2 weeks
Green checkmarkPros
  • Lowest down payments
  • Longest payment terms
  • Reasonable interest rates
Red X markCons
  • Lengthy paperwork
  • Longer approval time
  • May require collateral

Top SBA Lenders

Cadence Bank

Cadence Bank

Best for: Low-rate, SBA 7(a) loans.

Cadence Bank
First Home Bank

First Home Bank

Best for: SBA 7(a) loans from an established 7(a) lending program.

First Home Bank
Community Reinvestment Fund

Community Reinvestment Fund

Best for: SBA 7(a) loans from a nonprofit Community Development Financial Institution.

Community Reinvestment Fund

Business Term Loans

Online term loans are lump sum loans designed to accommodate a wide variety of businesses and their funding needs. The repayment period and rates of an online term loan will depend on the lender—however, short-term loans can have a repayment period of a few months up to a year, and long-term loans from a year to five years.

coins with dollar sign
AmountTermsRatesSpeed
$5,000 to $600,0003 months to 3 years7% to 30%As fast as three hours
Green checkmarkPros
  • Set payment structure
  • Quick to fund
  • Bad credit can be acceptable
Red X markCons
  • Potential prepayment penalties
  • Often require a personal guarantee

Best Online Term Loan Lenders

OnDeck Capital

OnDeck Capital

Best for: Access to shorter-term financing with a pre-payment discount.

OnDeck Capital
Funding Circle

Funding Circle

Best for: Affordable, medium-term loans that are quick to fund.

Funding Circle
Credibly

Credibly

Best for: Access to short-term working capital or business expansion loans.

Credibly

Business Lines of Credit

Business lines of credit are one of the most flexible forms of financing—giving you the ability to draw from a set pool of funds when you need capital. Unlike a traditional term loan, you’ll only need to repay the capital you withdraw, plus interest.

coins with dollar sign
AmountTermsRatesSpeed
$5,000 to $250,000Up to 18 months7% to 25%As fast as one day
Green checkmarkPros
  • Only pay interest on funds drawn
  • Capital is available when needed
Red X markCons
  • Lenders may place a UCC-lien
  • Harder to qualify for

Best Line of Credit Lenders

BlueVine

BlueVine

Best for: Fast, accessible business lines of credit.

BlueVine
Idea Financial

Idea Financial

Best for: Fast, flexible revolving business lines of credit.

Idea Financial
Headway Capital

Headway Capital

Best for: Quick funding for lines of credit up to $100,000.

Headway Capital

Invoice Financing

Invoice financing is a form of asset-based financing in which your unpaid invoices serve as collateral on the capital you borrow from a lender. Generally, invoice financing lenders can advance capital worth up to 85% of the value of your invoices with the 15% (minus fees) paid when your invoices are fulfilled.

coins with dollar sign
AmountTermsRatesSpeed
Up to 100% of invoice valueUntil the customer pays the invoiceApprox. 3% processing fee, plus factor fee (~1%) each week until invoice is paidAs fast as one day
Green checkmarkPros
  • No need to wait for invoice payment
  • Invoices serve as collateral
  • Easier to qualify for
Red X markCons
  • Can have higher fees than traditional financing
  • Fees based on time for invoice to be paid off

Best Invoice Financing Companies

BlueVine

BlueVine

Best for: Easier access to affordable financing to free up cash flow.

BlueVine
AltLINE

AltLINE

Best for: Fast access to invoice factoring for businesses who need at least $15,000 per month in factoring.

AltLINE

Equipment Financing

Equipment financing is a type of small business loan given for the specific purpose of purchasing new or used equipment. You can get an equipment loan equal to up to 100% of the value of the equipment you’re looking to purchase, which you’ll then pay back over time, with interest.

coins with dollar sign
AmountTermsRatesSpeed
Up to the amount of equipment5 to 6 years4% to 40%As fast as 2 days
Green checkmarkPros
  • Quick access to cash
  • Limited paperwork
  • Equipment serves as collateral
Red X markCons
  • Equipment could be obsolete by the time the loan is fully repaid

Best Equipment Lenders

Balboa Capital

Balboa Capital

Best for: Fast access to long-term equipment loans.

Balboa Capital

Summary of the Best Business Loans and Lenders

Lender Best for Est. Interest Rates Min. Credit Score
Cadence Bank
SBA loans
Variable based on the Prime Rate
650
First Home Bank
SBA loans
Variable based on the Prime Rate
650
Community Reinvestment Fund
SBA loans
Variable based on the Prime Rate
650
OnDeck
Online term loans
9.99% to 99%
600
Funding Circle
Online term loans
12.18% to 36% APR
660
Credibly
Online term loans
Factor rate of 1.15 to 1.45
500
BlueVine
Lines of credit
 4.8% to 51%
600
Headway Capital
Lines of credit
40% to 80% APR
560
BlueVine
Invoice financing
0.25% to 1.7% per week
530
AltLINE
Invoice financing
0.5% to 5%
500
Balboa Capital
Equipment financing
4% to 25%
600

How Do You Qualify for a Business Loan? 

Ultimately, the requirements to qualify for a business loan will largely depend on the individual lender you’re working with and the specific loan product you’re applying for. Overall, however, lenders will likely first look at three metrics to determine whether or not you qualify—your personal credit score, your annual revenue, and your time in business.

Generally, the better your personal credit, the stronger your annual revenue, and the longer your time in business, the more likely you are to qualify for a small business loan—and one with the most desirable rates and terms. This being said, even if your qualifications aren’t ideal, there may still be options for you to consider. You can learn more about bad credit business loans here.

How Much Is a Small Business Loan?

A small business loan from an online lender can be as much as $500,000 with interest rates as low as around 7%. However, small business loan amounts can go as low as $2,500, and interest rates can skyrocket to around 80%. SBA and bank loans typically offer the largest amounts. SBA loans, for example, can reach as high as $5 million in the loan amount.

The amount of financing you qualify for and the amount it costs really depends on what type of business loan you’re applying to, and how qualified your business is.

Can You Get a Business Loan With Bad Credit?

There may still be financing options available to you even if you don’t have the best credit.

If you work with Fundera, we can perform a soft credit pull (that won’t affect your score) to determine what your credit score is and if there are lenders in our marketplace that you can work with. We can also offer tips and advice to help you improve your credit score to qualify for better loan products in the future.

Who Is Fundera?

Getting the right business loan for you can be challenging—there are many different loan types available, and many lenders offering them. If you work directly with just one lender, how can you be sure you’re getting the best type of loan, interest rates, and terms for your unique financing needs?

That’s where a marketplace like Fundera comes in.

Fundera connects small business owners to the best loan option for them through our online marketplace of vetted business lenders. With one simple application, you can see all the products and lenders you qualify for, and start evaluating which small business loan is best for your business. Fundera features leaders in every financial category, so you can rest assured that you’re accessing the best products on the market.

Small Business Loan Guides & Resources

Dive deeper into your small business loan options with our comprehensive guides on all things small business financing.

Common Questions About Applying for a Small Business Loan