Looking for the best small business loans to grow your company? Small business loans provide financing to purchase equipment, expand operations, hire employees, and move into larger spaces.
Whether you need a few thousand dollars or a few million, business loans can inject working capital into your company to take it to the next level. But with so many loan options on the market, finding the best one for your needs can be tricky.
So we’ve done the research for you. Read on to compare the best small business loans for specific categories, including real estate, line of credit, fast funding, and more. Plus, find out what you need to apply.
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Best small business loans
Finding the right small business loan can affect the growth and sustainability of a business. We’ve researched five lenders offering the best small business loans, evaluating them based on interest rates, loan terms, and loan types.
Each lender provides unique advantages tailored to specific business needs, whether for expansion, cash flow management, equipment financing, or other needs. Click the lender’s name in the table below for more details about its small business loans.
| Lender | Best for |
| New Silver | Rental property |
| Bluevine | Line of credit |
| Kapitus | Customization |
| OnDeck | Fast funding |
| Funding Circle | Growing businesses |
New Silver
Best for rental property
- Specializes in real estate investment financing
- Quick approval and funding process, ideal for time-sensitive projects
- Loans are designed for fix-and-flip projects
New Silver is best suited for small business owners in the real estate sector, particularly those focused on fix-and-flip projects. Its specialization in real estate investment financing means it understands such ventures’ unique needs and timelines. With its fast approval and funding process, New Silver can be an excellent partner for businesses looking to capitalize on market opportunities.
New Silver offers a variety of loan options tailored to different stages of real estate investment, making it a versatile choice for entrepreneurs in this sector. Its expertise in the real estate market allows New Silver to provide valuable insights and support to its clients.
Bluevine
Best business line of credit
- Provides lines of credit and invoice factoring, enhancing cash flow
- Quick and easy online application process
- Competitive rates for short-term financing needs
Bluevine is an excellent option for small businesses needing flexible cash flow solutions. Its lines of credit and invoice factoring services can help businesses manage their finances more effectively, providing access to funds when needed.
Bluevine’s simple online application and fast funding can be crucial for businesses facing immediate financial challenges or opportunities. Bluevine’s products are best for businesses with variable cash flow or those that need to bridge gaps between receivables and payables. Its focus on short-term financing solutions makes it a strong ally for small businesses looking for agile financial products.
Kapitus
Best for customization
- Offers a wide range of financing products, including equipment financing and term loans
- Tailored solutions to meet specific business needs
- Competitive rates and flexible terms
Kapitus provides small businesses with a broad spectrum of loan products, making it a versatile choice for various financing needs. Whether it’s purchasing new equipment or funding expansion efforts, Kapitus’s tailored solutions can fit different business models and growth stages.
Kapitus’s commitment to offering customized financing solutions means it can accommodate businesses with unique needs or those in niche markets. Its comprehensive suite of loan products allows businesses to find the right type of financing to support their objectives.
OnDeck
Best for fast funding
- Specializes in short-term loans and lines of credit
- Get a decision in minutes and funding as soon as the same day
- Transparent terms and conditions
OnDeck is ideal for small businesses looking for quick access to capital. Its focus on short-term loans and lines of credit provides businesses with the flexibility to manage cash flow. OnDeck’s transparent terms and speedy funding process remove much of the uncertainty in securing business financing.
OnDeck’s products are best suited for businesses needing immediate financial support, whether to cover unexpected expenses or take advantage of timely opportunities. Its commitment to making funding accessible and straightforward makes it a reliable choice for small businesses.
Funding Circle
Best for growing businesses
- Focuses on term loans with competitive rates
- Longer repayment periods available
- Personalized service with dedicated account managers
Funding Circle’s term loans are ideal for small businesses looking to invest in long-term growth initiatives. Its competitive rates and longer repayment periods allow businesses to finance major projects without straining their cash flow. Funding Circle’s personalized service ensures businesses receive the support and guidance they need throughout the loan process.
Funding Circle’s term loans are best for businesses planning significant investments in their operations or infrastructure. Its approach to lending combines the benefits of competitive financing with personalized customer service, making it a top choice for businesses focused on sustainable growth.
Types of small business loans
You can explore several loan options if you’re a small business owner. Here are eight of the most common.
| Loan type | What it is | Best for |
| Term loan | Common business loan Lump sum upfront Repay in installments | Big purchases Funding projects |
| Working capital loan | Aka short-term loan Shorter repayment (12 – 18 mos.) | Immediate needs Temp. dips in cash flow |
| Equipment financing | Equipment is collateral | New equipment |
| Microloan | Small loans ($50,000 max) Easier to qualify | Startups |
| Invoice factoring & invoice financing | Turn outstanding invoices into cash | Businesses with slow-paying customers |
| Small Business Admin. (SBA) loan | Partially guaranteed by SBA Lower interest rates Longer repayment periods | General [7(a) loans] Comm. real estate [504 loans] |
| Business credit card | High rate if you don’t pay balance in full | Ability to pay in full each month Earning rewards |
| Business lines of credit | Like credit cards (but lower rates) | Payroll, rent, & utilities |
How to choose the right small business loan
Now that you know the main types of small business loans, how do you choose the right one for your needs? Ask yourself these questions:
What will I use the money for?
Look for a loan that aligns with your purpose, whether it’s a working capital loan for operational expenses, equipment financing for a new tractor, or a credit card for rewards.
How soon do I need the money?
- You can get funding for many term loans, lines of credit, and merchant cash advances in just 24 hours.
- SBA loans take one to three months.
- Invoice factoring can take several weeks.
What are the interest rates and fees?
With so many types of loans, interest rates and fees can be wide-ranging. It’s common to see rates of 3% to 36%—or more depending on the loan type and your credit profile.
What are the repayment terms?
Match the loan term to how long you need the funds.
- Short-term loans have daily or weekly repayment schedules because they’re often paid back within 18 months.
- Traditional term loans have monthly payments lasting up to 10 years.
- SBA loans can go up to 25 years.
What collateral is required?
Not all lenders require collateral. But some will ask you to sign a personal guarantee, which states you’ll be personally responsible if you can’t repay your business debts.
Do I qualify?
Lenders have unique criteria. Check what credit score, revenue, and time in business the ones you’re considering require. You might find more lenient terms with online lenders.
How to get a small business loan
Making sure you qualify is the first step to getting a small business loan. Many lenders have these three requirements:
- Time in business: Most lenders require at least one year in business, but others will lend to companies that have been operational for six months or less.
- Credit score: You may need a minimum credit score of 650 or higher, but some lenders will accept scores as low as 500 for certain loan types.
- Annual revenue: It’s typical for lenders to require at least $8,000 in monthly revenue, which breaks down to $96,000 in annual revenue.
Lenders will review your personal and business credit when applying. Depending on the loan type, you may need these documents:
- Business financial statements and tax returns
- Personal financial statements and tax returns
- Business plan and cash flow projections
- Collateral you can pledge (if required)
- Articles of incorporation/organization
- Accounts receivable aging report
- Debt schedules
Funding times will hinge on what business loan you choose. Term loans from online lenders may take just a business day to process. SBA loans require significant paperwork and can take up to three months for approval.
It’s often easier to qualify for a loan with an online lender than a traditional one. You’ll often get your funds faster too. But you may pay more in interest rates and fees. This trade-off could be worth it if you have imperfect credit or are in a hurry. Otherwise, check rates from banks or credit unions; you could save money.
See more about small business loans:
- Small business loans for women
- Small business loans for startups
- Fast small business loans
- Small business loans in Florida
- Small business loans in California
Alternatives to small business loans
If you don’t qualify for a small business loan, consider these alternatives:
- Bootstrapping. This is where you start with what you have. You could use personal savings or tap into friends and family willing to invest in your vision.
- Crowdfunding. You could try pitching your business idea to the public. If enough people are interested, you could raise funds through small contributions.
- Angel investors. Also known as venture capitalists, these individuals specialize in providing capital for startups—but often in exchange for equity ownership in your company.
- Grants. Government and private grants aim to support small businesses, especially those in specific industries or owned by people of color, women, or veterans. Grants have significant competition but can help you get funding you don’t need to repay.
- Personal loans for business use. A personal loan could be an option if your company is too new to qualify for a business loan. But it ties your personal credit to your business’s success. Some lenders prohibit the use of personal loans for business use.
Small business loan FAQ
What is the best financing option for a small business?
The best financing option for a small business depends on the company’s needs and financial health. Term loans are popular for their straightforward repayment terms, but lines of credit offer flexibility for ongoing expenses. It’s crucial to assess any loan’s immediate and long-term financial implications.
What type of loan is best for starting a business?
For starting a business, microloans, business credit cards, and equipment financing are particularly useful. These options cater to early-stage needs, offering lower borrowing amounts and sometimes more lenient credit requirements, making them accessible for new entrepreneurs.
What credit score do I need for a small business loan?
Many traditional banks prefer a credit score of at least 680 for a small business loan for more favorable interest rates. However, alternative lenders may accept scores as low as 500. Lower scores may result in higher interest rates and more stringent repayment terms.