Lender Best for Est. Interest Rates Min. Credit Score
Five Star Bar SBA loans Variable based on the Prime Rate 685
Celtic Bank SBA loans Variable based on the Prime Rate 640
First Home Bank SBA loans Variable based on the Prime Rate 650
OnDeck Online term loans 9.99% to 99% 600
Funding Circle Online term loans 11.67% to 36% APR 660
BlueVine Online term loans 4.8% to 51% 600
PNC Bank Lines of credit Variable rate of Prime + 7.49% or 9.49% 680
OnDeck Lines of credit 13.99% to 63% APR 600
Fundbox Lines of credit Starts at 4.66% of draw amount 500
Balboa Capital Equipment financing 4% to 25% 600
BlueVine Invoice financing 0.25% to 1.7% per week 530

Explore the Top Loan Products Available

SBA Loan

SBA loans are government-guaranteed term loans. The guarantee allows SBA lenders to offer low-interest rate loans to business owners who might not qualify for a bank loan.

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Maximum Loan Amount

$5K – $5M

Term

5 – 25 years

Interest Rates

Starting at 6%

Speed

As fast as 2 weeks

See if you qualify

Business Term Loan

Just like with a traditional bank loan, with a traditional term business loan, you are lent a lump sum amount upfront, which you pay back (along with fees) over a set period of time.

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Maximum Loan Amount

$25K to $500K

Term

1 – 5 years

Interest Rates

7 – 30%

Speed

As fast as 2 days

See if you qualify

Business Line of Credit

With a business line of credit, you can borrow up to a maximum credit limit and only pay interest on the amount of capital that you borrow from your credit line.

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Maximum Loan Amount

$10K to over $1M

Term

3 months to 2 years

Interest Rates

7% – 25%

Speed

Under 24 hours (in some cases)

See if you qualify

Invoice Financing

Invoice financing lets you sell invoices to a lender, who fronts you a portion of the invoice amount. The remaining percent (usually 20%) is held until the invoice is paid.

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Maximum Advance Amount

Up to 100% of invoice value

Term

Until the customer pays the invoice

Factor Fee

Approx. 3% + %/wk outstanding

Speed

As little as 1 day

See if you qualify

Startup Business Loan

Startup loans offer newer businesses capital to grow. Business credit cards, lines of credit, and equipment loans are great startup loans if you have strong personal credit.

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Maximum Loan Amount

$150K

Term

6 months to 4 years

Interest Rates

7.9 – 19.9%

Speed

As fast as 2 weeks

See if you qualify

Equipment Financing

With equipment financing, the lender will front you cash to help purchase the equipment outright. You then pay back the total amount lent, plus fees, for a set period of time.

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Maximum Loan Amount

Up to 100% of equipment value

Term

Expected life of equipment

Interest Rates

8 – 30%

Speed

As fast as 2 days

See if you qualify

Short-Term Business Loan

With a short-term small business loan, you are lent a set amount of capital upfront, which you quickly pay back (along with fees) over a short period of time.

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Maximum Loan Amount

$2.5K – $250K

Term

3 to 18 months

Interest Rates

Starting at 10%

Speed

As fast as 1 day

See if you qualify

Merchant Cash Advance

With merchant cash advances, a financing company fronts you a lump sum of capital, which you repay (plus their fee) with a set percentage of your daily credit card sales.

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Maximum Advance Amount

$2.5K – $250K

Term

Paid daily via your merchant account

Factor Fee

1.14 – 1.18

Time To Funding

As little as 2 days

See if you qualify

How to Get a Business Loan

You may feel overwhelmed by the process of actually applying and getting the business financing that’s right for you. After all, even though you probably have some idea of what type of financing you need and what you’re going to use it for, it’s not always simple to figure out how to get a business loan.

There are a variety of lenders you can work with—both traditional banks and alternative lenders—and each will offer unique products with different rates and terms, as well as have their own application process, with specific qualifications and requirements that need to be completed.

Using an Online Marketplace

Luckily, you can make this process simpler by working with an online marketplace, like Fundera. Instead of having to go lender by lender—evaluating each of them in terms of their products, rates, and application processes—with an online marketplace, you can access the top small business lenders in one place. In this way, you can easily compare your options and apply to the best lenders that will be able to offer you the funding you need.

Plus, if you’re unsure of what type of business loan is right for your business, or have questions about qualifications, individual applications, or timelines, you can work with a loan specialist, for free. This loan specialist will be able to walk you through your eligibility, loan options, and offers—once you’ve gone through the application process.

In fact, with an online marketplace, you can submit a few pieces of basic information and in just a few minutes see what small business loan options you might qualify for—without paying any fees or impacting your credit score. After receiving these options, you’ll then be able to make a decision about what will be best for your business and start the process of actually applying for a loan.

Business Loan Requirements

Ultimately, although the business loan requirements, as well as the application process, will largely be specific to the lender and the product you’re applying for, there are some important pieces of information you can keep in mind before you get started.

First, in order to qualify for a small business loan, there are a few requirements that lenders will almost always look at—time in business, personal credit score, and annual revenue. Generally, the longer you’ve been in business, the stronger your credit score, and the higher your annual revenue, the more likely you are to qualify for a loan—and one with the most desirable rates and terms.

Overall, if you have at least two years in business, a personal credit score of 700 or above, and strong financials, you’ll want to see if you can qualify for a traditional bank loan, which will offer the best rates and terms. If you can’t qualify for a bank loan, then you’ll want to look into other options—SBA loans, online term loans, business lines of credit, etc.

However, even if you don’t have the most ideal qualifications that doesn’t mean you won’t be able to get a business loan. As an example, a business owner with lower qualifications may still qualify for asset-based financing, as lenders are more likely to consider your collateral over the more traditional requirements.

Business Loan Application Process

With this in mind, to actually apply for a business loan, you’ll need to provide a variety of business and personal documents—the specifics of which, again, will depend on the lender. On the whole, however, you can expect to provide:

  • Basic business information such as a loan purpose statement, business tax ID number, and business plan
  • Business financial information including your credit score, financial statements, and tax returns
  • Personal information such as your ID, credit score, and personal tax returns

Again, if you work with an online loan marketplace like Fundera, you’ll be able to take advantage of the expertise of a loan specialist who can help you through this process—gathering the required documents, completing the application, and reviewing the offers you receive—to choose the one that’s best for your business. You’ll want to compare multiple products and even multiple offers to ensure that you’re getting the best small business loan possible to meet your financing needs.

How Fundera Makes Money

At this point, you might be wondering: How does an online marketplace like Fundera make money?

At Fundera, we only make money when you get the financial product you need. Essentially, this means that we receive a referral fee from the financial provider once you’re approved and have taken the product. This being said, as a partner to your business, we’ll never hesitate to recommend you toward a better solution, even if we don’t have a relationship with the financial provider. Ultimately, Fundera first and foremost exists to help small business owners make smarter financial decisions—whether that’s getting you the best offer available in our marketplace, or pointing you in the right direction for a better alternative.

You can learn more about Fundera’s editorial independence and how we make money here. If you have any questions about our editorial process, please don’t hesitate to contact us at content@fundera.com.

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