Find the Best Business Loan Companies
Compare Reviews for Top Business Loan Companies
Read 265 Reviews
In business since 2015, Seek Business Capital is a business funding company offering business planning, funding assessments, cash advances and mortgages. Requests can be fulfilled in as little as two days.
Read 69 Reviews
Imperial Advance is a business loan broker that finds loan offers for you. Simply create an account, fill out your financial information and you will receive several different quotes. Funds are available within 24 hours.
Read 231 Reviews
SmartBiz was founded in 2008 to help small businesses navigate the process of applying for and receiving SBA guaranteed loans. They partner with lenders to make it easier for them to lend to small businesses.
|Get Pricing Call Now Toll Free (866) 283-8726|
Read 249 Reviews
Founded in 2006, Lending Club is a peer-to-peer lending company that is based in San Francisco, California. Lending Club's platform is Internet-based, and the company is extending its reach into car loans and mortgages.
|Get a Quote|
Read 1,536 Reviews
Specializes in home purchase loans, home refinance, home equity and reverse mortgages. Compares rates and quotes from multiple lenders. Provides free mortgage calculator.
Read 147 Reviews
Lendio connects business owners with multiple loan offers with one short application. Once loan offers are generated, a Lendio adviser helps business owners decide which loan will work for them.
Read 564 Reviews
Currency's services include various business financing options including business loans, equipment financing, equipment leasing and working capital. They offer competitive interest rates and 100 percent financing services.
|National Business Capital & Services|
Read 273 Reviews
Founded in 2009, National Business Capital is a business financing provider best known for their fast approval and funding processes. NBC specializes in business equipment financing, lines of credit and small business loans.
Read 143 Reviews
Kabbage has a simple online application that requires no fee. Most applicants will have an instant approval decision, complete with a cash offer. Credit lines range from $2,000 to $100,000.
Read 80 Reviews
Found in 2007 and headquartered in New York City, OnDeck provides financial services to small businesses. They offer short-term loans and lines of credit in amounts best suited to a business’ need.
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What to consider before applying for a business loan
Fixed or variable interest rates
When a customer takes out a business loan, an interest rate is established. With a fixed interest rate loan, the payment remains constant over the entire loan term. The interest rate on a variable rate loan may go up or down depending on pre-determined conditions.
- Loan term: Whether a loan is a for a short time period or for a long one, the interest rate and payment amount remain constant with a fixed rate loan. In a rising interest rate environment, the borrower risks higher debt payments with a variable rate loan.
- Current market rate: Interest is usually calculated at the current market rate, so the loans is competitive with similar loans from other institutions. The fixed interest rate won’t change, whereas if market interest rates go up or down, the variable interest rate and subsequently the loan payment will adjust.
- Stability: With a fixed rate loan, the interest rate remains stable, even if the market changes. Fixed rate loans offer greater future debt payment certainty than variable rate loans.
Set maturity date
The maturity date, which is set at the time of the loan, is the date by which the loan must be repaid. Some loans have a set maturity date whereas others do not. For example, a line of credit may not have a pre-determined maturity date.
- Loan is for a specific time period: The loan must be paid back within a specific time period or be refinanced; it is not open-ended.
- Interest stops accruing on maturity date: Users may have to repay interest even after the principal amount is repaid, but after the maturity date, interest payments stop and the entire loan must be repaid.
- Users can prepay: Loans can be paid off early without penalty, as long as they are paid in full by the maturity date.
Many business loans require customers to put up collateral, or property, that is used as security if the borrower defaults on his or her loan payments. If the user defaults on the loan, the bank can seize the property and sell it to recover its loss. For example, an equipment loan usually uses the piece of equipment as collateral.
- Flexible requirement: The amount of collateral needed depends on the size of the loan. Smaller loans may not require collateral.
- Requires assets: In general, larger loans require high-value assets to be used as collateral against the business loan.
- Increases risk: Business owners should be certain that they can repay loans prior to putting up collateral, as they can lose the property if they default on the loan.
Most business debtors are not expected to repay the loan all at once. Instead, borrowers pay in installments until the loan, interest charges and financing fees are completely paid off.
- Variety of plans: Daily, bi-monthly and monthly repayment plans are common. Some lenders offer flexible repayment schedules. The lender explains the repayment options at the time of borrowing. The repayment schedule depends on the amount of the loan, the customer’s credit rating, the type of loan and the customer’s financial circumstances.
- May be renegotiated: Under special circumstances, if the borrower encounters financial difficulties, he or she may be able to refinance the loan in order to lower the payments.
- Takes interest and fees into account: The loan documents explain how interest and fees are calculated and repaid.
Limitations on additional debt
Some lenders require that business borrowers agree not to take out additional loans for greater than a specific amount. This protects the debtor from securing more debt than he or she can realistically pay back.
- Not required for all loans: This feature is used for larger loans, where the lender is risking a lot of money if the debtor defaults.
- May need permission letter: In some cases, debtors may need to get a written letter from the lender giving him or her permission to take out an additional loan during the life of the debt.
- Independent of credit rating: This limitation is set by the lender and may be unrelated to the user’s credit rating.
Not all business loans are alike. Many lenders offer flexible terms, depending on the debtor’s credit rating, the strength of the business and other factors.
- Short-term loans for less than three years: Short-term loans last for a few months through several years.
- Flexible payment plans for loans of all sizes: Users can choose from several different payment plans with varying interest rates and loan lengths with a flexible term loan.
- Various down payment requirements: Each lender has its own minimum requirements for down payments. The down payment may depend upon type of loan, borrower’s credit worthiness and company policy.
What are different types of business loans?
The Small Business Association (SBA) offers loan guarantees to small businesses, including startups, that need additional support and help securing financing. An SBA guarantee lets a bank or other lender know that the SBA believes the business is sound and will be able to pay back the full loan amount, even if the business does not have great credit. The SBA can guarantee between 75-85 percent of a loan, depending on the total loan amount.
Short-term loans last for a maximum of three years. They often require monthly payments.
Some lenders offer terms up to 20 or 30 years. These loans usually are for large amounts and may be used to buy equipment, construct facilities or make other large business investments.
Business lines of credit
A line of credit gives companies with ongoing financial need the opportunity to borrower on an as-needed basis.
Certain lenders specialize in equipment financing. These lenders may fund leasing or the purchase of business equipment.
Who applies for business loans?
People who are just starting a business may need a loan to buy equipment, hire employees, advertise their business and/or obtain required licenses. In general, startup funding is more difficult to secure than loans for established businesses due to the greater risk of new-business failure.
Small and local businesses
Small, local and mid-sized businesses may need money to expand, acquire materials, cover bills and payroll, purchase equipment or fund inventory. All types of businesses for a variety of financing needs may benefit from a loan at some point.
Businesses that are poised to grow may need financing to help them reach more customers, open new locations, increase their marketing or support other expansion needs.
Business loan questions
- What is the average loan amount for a small business?
- The average loan amount depends on the lender you’re working with and how much you qualify for. The 7(a) loan program offers federally guaranteed loan amounts of up to $5 million, depending on what the funds are for and the kind of enterprise you operate. These loans are generally low-interest and have flexible terms.
- How do you qualify for a small business loan?
- The U.S. Small Business Administration states that the basic criteria to apply for a small business loan includes:
- Being registered as a for-profit business
- Physically located in the U.S. or its territories
- Having invested equity
- Exhausted all other financing options
Every lender has specific criteria for small business loans, so check their website to find out if you meet their eligibility requirements.
- Can you get a small business loan for an online business?
- The basic eligibility requirements for a physical business are the same for an online business:
- Registered as a for-profit business
- Located in the U.S. or its territories
- Have invested equity
- Exhausted all other financing options
- What credit score do I need to get a business loan?
- Every lender has a different minimum credit score requirement. Having a good credit score (700 or higher) can boost your loan application and get you access to higher loan amounts.
If you have a less than perfect credit score, you might be able to get a business loan, but interest rates and fees tend to be higher for borrowers with poor credit.
- Is it a good idea to get a loan to start a business?
- Business loans give you the funds you need to get your business up and running. If you need money to cover startup costs and meet the eligibility requirements, a business loan could be the right option.
- Which business activities would necessitate short term financing?
- Short-term financing usually has a term that lasts less than a year. It’s a viable option for a few different reasons:
- Seasonality. A loan can help your business make it through the off-season
- Cover short-term costs. If you’re waiting for customers to pay their bills but need to pay your employees, a business loan is a practical option
- Even out cash flow, especially if you have a cyclical business
Compare Reviews for Top Business Loan Companies
Read 53 Reviews
Headway Capital provides access to credit in order to run your small business more efficiently. We are part of Enova International, a leading online lender, which has been providing loans to individuals for over 10 years.
Read 14 Reviews
Biz2Credit offers business loans for numerous industries, including ones for real estate investments and veterans. They're interactive website helps business owners find the best loan for their particular needs.
Read 12 Reviews
Fundera is a financing company for small business owners who would benefit from comparison-based loan shopping. Easy shopping, dedicated client protection and quick financing make Fundera a good resource for small business owners.
Read 24 Reviews
Celtic Bank, founded in 2001, is an SBA Preferred Lender and offers financing to business of all sizes in the United States. They are headquartered in Salt Lake City.
|All Fundy Capital|
Read 7 Reviews
Offers business loans, personal loans and mortgage loans. Individuals must have a FICO score of at least 500 to qualify. Get same day approval and next day funding.
Read 17 Reviews
Credibly is a lending company offering loans for as little as $5,000. They were founded in 2010 and now work with businesses in more than 125 industries.
Read 16 Reviews
ForwardLine is a business loan provider with over a dozen years of lending experience. It uses low, fixed-rate interest options to help people start new businesses and grow existing businesses that have shown success.
|Business Finance Advance|
Read 70 Reviews
Business Finance Advance has a free, quick quote option via their website that gives business owners an instant approval decision. They have a 95 percent approval rating, and their loans go as high as $2.5 million per location.
|American Capital Group|
Read 22 Reviews
American Capital Group has numerous financing options for equipment leasing and business loans. They offer 100 percent financing and start-up loan programs, as well as flexible financing programs and internal funding programs.
Read 12 Reviews
Dealstruck offers multiple funding options to small and medium-sized businesses, including loans and lines of credit up to $500,000. They have several online tools to help clients determine which option best suits their needs.
|Expansion Capital Group|
Read 12 Reviews
Founded in 2013, Expansion Capital Group offers small and medium-sized businesses short-term loans to help them expand or build working capital. Since the company started, it has loaned businesses over $65 million.
|The Business Backer|
Read 11 Reviews
Established in 2007, The Business Backer was created in order to help small businesses thrive. Backed by Enova International, we provide honest and transparent funding to help small businesses get the capital they need to grow.
|The Interface Financial Group|
Read 11 Reviews
The Interface Financial Group was founded in 1972. They have more than 150 offices and offer financial services to B2B companies around the world. The company offers factoring services to help businesses with cash flow problems.
|Can Capital||Read Author Review|
Can Capital offers small business loans and merchant cash advances for growing businesses. Online applications and loans that range from $2,500 and $150,000 make it easy for businesses to gain capital they need for growth.
|Fundation||Read Author Review|
Fundation is a direct online business lender that operates in all 50 states. Their process just requires an online, 10 minute application to apply. The company has been business since 2011, it provides low interest loans.
|Funding Circle||Read Author Review|
Funding Circle is an established entrant in the online small business lending marketplace and is a leader in peer-to-peer lending. This means Funding Circle can offer value for both borrowers and investors.
|LendVantage||Read Author Review|
Endorsed by Larry King, LendVantage is a reputable company that offers various financing options to business owners. Applications are free, and the company doesn't require any personal collateral for their loans.
|National Funding||Read Author Review|
National Funding is a financial services firm committed to helping small business owners. The company provides education opportunities and a Small Business Resource Center to give entrepreneurs the tools they need to succeed.
|RapidAdvanced||Read Author Review|
Rapid Advance is an online lender for small business owners. The company also has flexible individual lending options and specialize in financing for a range of uses. They don't require perfect credit in order to be considered.
|Wall Street Funding||Read Author Review|
Wall Street Funding has an online application process with approval within 24 hours. They've been featured in several popular newspapers, including the Wall Street Journal, Business Insider and the New York Times.
Read 23 Reviews
|Out Of Business|
Swift Capital was created to help small businesses get the money they need. Swift assesses your business and makes funds available as you need them. Loans are available in amounts ranging from $5,000 - $500,000.
Information in this guide is general in nature and is intended for informational purposes only; it is not legal, health, investment or tax advice. ConsumerAffairs.com makes no representation as to the accuracy of the information provided and assumes no liability for any damages or loss arising from its use.