Lendio is our top choice when it comes to the best small business loans for borrowers. Lendio won out because this marketplace gives you a larger pool of lenders for small businesses from which to choose. Small business loans are an integral component of the business world. Business owners rely on them to invest in new equipment or supplies, cover payroll, or manage cash flow. With a small business loan, business owners and entrepreneurs can access a lump sum of cash or a line of credit, which they can use to remain operational and continue growing their business for years to come. The best small business loans have convenient application and funding processes, with competitive fees and flexible terms. Investopedia compared more than 20 of the top small business loan lenders based on their loan products, rates, fees, eligibility requirements, and overall transparency, among other factors. We narrowed down the list to the following five lenders. Best Small Business Loans for July 2024 Best Small Business Loans for July 2024 The Bottom Line Compare Loans Why You Should Trust Us FAQs Key Specs Why We Chose It We chose Lendio as one of the best loan comparison sites based on the fact that it lets you compare loan options from more than 75 lenders in one place, more than other marketplace sites. You can also have your loan funded in as little as 24 hours, which can be a major boon for business owners who need cash fast. Pros & Cons Pros Compare loan offers from more than 75 lenders Funding in as little as 24 hours Offers small business loans, SBA loans, and business lines of credit Cons Lendio does not lend money directly. Eligibility requirements vary, depending on the lender. Overview Lendio is a loan marketplace, so it won't lend you funds directly. We believe it shines in this category since it lets you compare loan offers with more than 75 lenders in the small business space. Having lenders compete for your business is the best way to ensure you get a small business loan with the best rate and terms. Lendio was founded in 2011, yet it has grown dramatically since then. The site claims to have funded over 400,000 small business loans worth more than $15 billion, and they don't plan to stop anytime soon. The marketplace lets you borrow between $25,000 and $500,000, depending on your needs. You can repay your loan over one to five years, and your interest rate could be as low as 4.5%. Lendio has just a 15-minute application process, and you can get a decision on the same business day, making it an efficient place to shop for a loan. Key Specs Why We Chose It Fundbox focuses on offering lines of credit for business owners, and they make it possible to get prequalified online without a hard inquiry on your credit report. Its focus on business lines of credit makes Fundbox an expert on this particular type of small business funding. It offers decisions in minutes as well as funding as soon as the next business day. Pros & Cons Pros Get prequalified online without a hard credit inquiry Get a decision in minutes Only borrow what you need, unlike a lump sum small business loan Cons Lines of credit are only available for up to $150,000. Overview We chose Fundbox as the lender offering the best revolving line of credit, which allows you to qualify for a specific amount and borrow only what you need. Fundbox was founded in 2013, and the company uses technology to facilitate its B2B lines of credit to help small businesses achieve significant success. Lines of credit from Fundbox are only available in amounts up to $150,000, but you can get prequalified online without completing a full loan application. Once you apply, you can get a credit decision within minutes, and you’re under no obligation to accept the loan funds. Because Fundbox focuses on lines of credit, you get the chance to borrow only as much money as you need. You can transfer funds from your line of credit to your business checking account as soon as the next business day. This provider gives you the option to save money by paying off your balances early and ahead of schedule without any prepayment fees. Fundbox lets you see the fees for your line of credit upfront, and it'll automatically debit your bank account to pay your amount due, so you won’t have to think about it. You get the option to repay your line of credit over 12 or 24 weeks. Key Specs Why We Chose It Kiva is the best option for small business owners who only need to borrow a small amount of money. Its microloans currently come with a 0% interest rate, and you can borrow up to $15,000. Pros & Cons Pros Borrow money with no interest Market your product to a growing community of Kiva lenders Repay your loan for up to 36 months Cons You can only borrow up to $15,000 with Kiva Can take 30 days or longer for your loan to be funded Overview We chose this lender as the best option for microloans based on the fact that you can borrow money at an annual percentage rate (APR) of 0% and repay it over three full years. Founded in 2005, Kiva aims to help underserved community members qualify for the small business funding they need to get their dreams off the ground. As many as 2.2 million Kiva lenders have funded more than $2.07 billion in loans to more than five million borrowers in 81 countries around the globe. Kiva is not a bank. Rather, it's a peer-to-peer lending platform. Kiva loans are geared toward disadvantaged entrepreneurs, so investors who lend money through the platform get the chance to help people around the world. In terms of their loan product, Kiva only lets you borrow up to $15,000. You can apply online in 20 to 30 minutes and earn the ability to advertise your funding project on their marketplace within 30 days; you get the chance to repay your loan over 36 months. Kiva also lists easy requirements to qualify, including living in the U.S. and being at least 18 years old. To qualify for a Kiva loan, you also have to agree to use your loan for business purposes only. Key Specs Why We Chose It We chose Fundera as the best option for Small Business Administration (SBA) loans because it offers the most SBA options, including loans through the popular SBA 7(a) loan program. You can apply for an SBA loan directly on Fundera with your loan funded through a variety of top SBA lenders. Pros & Cons Pros Offers wide range of business loans and lines of credit, including SBA-approved loans Compare loan options through multiple lenders in one place Gauge your ability to qualify without a hard inquiry on your credit report Cons Is a marketplace rather than a direct lender Credit score of at least 550 required Collateral required for some SBA loans and loan amounts Overview Fundera is an excellent option for consumers who want to qualify for an SBA loan, mostly because it lets you fill out a single application and compare multiple SBA loan options in one place. Founded in 2013, Fundera is a loan marketplace instead of a direct lender. This means the company connects small business owners with the best small business loans and lines of credit on the market today, but it does not lend money itself. Because Fundera is a marketplace, it can offer nearly any type of business loan or line of credit available today. This includes loans through the SBA, which tend to come with flexible repayment terms and affordable interest rates. Loan amounts and repayment terms vary, but it’s possible to qualify for an SBA loan in amounts up to $5.5 million. You may also be able to repay your loan for up to 25 years, although it can take two weeks to get your loan funded. Note that SBA loans may require collateral, and that’s especially true for larger loan amounts. Key Specs Why We Chose It We chose OnDeck because it offers small business loans with funding as soon as the same business day. This can be crucial for business owners who need fast access to cash to keep up with business expenses or pay for an important piece of equipment right away. Pros & Cons Pros Funding available as soon as the same business day Lends up to $250,000 for small business loans and up to $100,000 for lines of credit Transparent about loan details and eligibility requirements. Cons Minimum personal credit score of 600 required Applicants need at least one year in business with a minimum of $100,000 in annual business revenue. Overview Since its founding in 2006, OnDeck has grown to become one of the most prominent small business lenders offering capital on the market today. We chose OnDeck as best for same-day funding due to its easy online application process and rapid approval and fulfillment of your small business loan. OnDeck makes it easy to qualify for a line of credit in amounts from $6,000 to $100,000 or a small business loan in amounts from $5,000 to $250,000. Repayment terms on small business loans are available for up to 24 months, and you will benefit from transparent pricing and no prepayment penalties. You can repay one of OnDeck's lines of credit over 12 months, plus you get the benefit of borrowing only what you need. Either option can work for small business owners who need access to capital, and both types of funding let you apply and receive a decision within the day. OnDeck lists some basic requirements to qualify for a business loan, which include a minimum personal credit score of at least 600 for a long-term loan. You also need to be in business for at least two years and you need to have a least $250,000 in annual business revenue to qualify. A small business loan or line of credit can help you grow your business without having to tap into your own capital. There are many options available, including small business lenders, loan marketplaces, and even the Small Business Administration, which can guarantee your loan with an approved lender. Lendio is our top choice because this marketplace connects you with a wide range of lenders. If you're looking for a microloan, consider applying through Kiva. Fundbox has the best options for revolving credit lines while Fundera tops the list of SBA loan providers. But if you're looking for same-day funding, OnDeck is your best bet. We looked at more than 20 lenders who offer small business loans, small business lines of credit, and unique funding options like invoice factoring. We looked for lenders who offer transparency when it comes to their loan products and eligibility requirements, and we also looked for lenders who post fees and ongoing costs prominently on their websites. To find the best small business loans, we compared loan options and lenders to find companies with excellent ratings and user reviews on websites like Trustpilot. We also looked for lenders who offer high loan amounts and flexible repayment options, as well as the ability to apply and set up loan funding online. A business loan is a type of loan business owners take out in order to access funds for inventory, payroll, and other business expenses. Business loans come in many different forms, although traditional small business loans tend to be offered in one lump sum and with a fixed monthly payment and interest rate. However, there are other types of funding available for small businesses. Lines of credit are a popular option since they let business owners borrow only what they need. Further, invoice factoring can be helpful for some business owners who are short on cash but have plenty of unpaid invoices to use as collateral. Small business owners can also apply for an SBA loan, which is a type of loan that is backed by the Small Business Administration. While the SBA does not loan money themselves, they connect borrowers with SBA-approved lenders that offer SBA-backed loans with competitive rates and terms. When applying for an SBA loan, you must provide an unlimited personal guarantee if you own 20% or more of the business. This means that if you fail to repay the loan because the business fails, you are still on the hook for repaying the entire loan amount. Also note that, in the case of a borrower defaulting, the lender can recover 50% to 85% of the outstanding loan balance from the SBA. Approved applicants can use their small business loan funds to pay for any ongoing expenses as well as payroll or investments in equipment or inventory. Small business loans are also frequently used as a means to manage or smooth out cash flow in times when expenses exceed income. If you’re a small business owner who needs to buy some equipment but you’re waiting to be paid by a few major clients, for example, it could help you keep up with your expenses and buy equipment while you wait for your invoices to be paid. Other popular uses of small business loans include raising capital to hire new staff or to launch a new marketing or ad campaign that could help boost revenue. Article Sources Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in our editorial policy. Lendio. "Business Loan Types | Lendio." Lendio. "Frequently Asked Questions." Fundbox. "Working capital made simple." Fundbox. "About us." Kiva. "How Kiva US works." Kiva. "About." Small Business Administration. "504 Loan Program - Small Business Administration." OnDeck. "Move forward with fast business funding." Small Business Administration. "Loan Fact Sheet - Small Business Administration." Article Sources Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in oureditorial policy. Lendio. "Business Loan Types | Lendio." Lendio. "Frequently Asked Questions." Fundbox. "Working capital made simple." Fundbox. "About us." Kiva. "How Kiva US works." Kiva. "About." Small Business Administration. "504 Loan Program - Small Business Administration." OnDeck. "Move forward with fast business funding." Small Business Administration. "Loan Fact Sheet - Small Business Administration." Related Terms Listed Property: Meaning and Examples in Taxes and Accounting Listed property is a type of property that can be used for both business and personal purposes and is subject to special tax deduction and depreciation rules. more What Is a Use Tax? Definition as Sales Tax, Purpose, and Example Use tax is a type of sales tax applied to purchases that will be used in one’s state of residence and on which no tax was collected in the state of purchase. more Dividend Exclusion: What It Is and How It Works for Corporations U.S. corporations are allowed to deduct a portion of the dividends they receive from other corporations in order to avoid double taxation. more Marketing Strategy: What It Is, How It Works, and How to Create One A marketing strategy is a business’s general scheme for developing a customer base for the product or service that the business provides. Learn how it is developed. more Seed Capital: What It Is, How It Works, Example Seed capital is the money raised to begin developing a business or a new product. It might cover only the essentials such as a business plan and operating expenses. more What Are Tax Loss Carryforwards? A tax loss carryforward is an opportunity for a taxpayer to move a tax loss to a future time to offset a profit. moreBest Lender Comparison Site : Lendio
Best Revolving Line of Credit : Fundbox
Best for Microloans : Kiva
Best for SBA Loans : Fundera
Best for Same-Day Funding : OnDeck
The Bottom Line
Compare Small Business Loans
Lender Mobile App Best Perk Loan/LOC Amount Lendio Best Lender Comparison Site Yes 24-hour funding $25,000-$500,000 Fundbox Best Revolving Line of Credit Yes Decision in minutes Up to $150,000 Kiva Best for Microloans Yes Zero percent interest Up to $15,000 Fundera Best for SBA Loans No Multiple offers Up to $5.5 million OnDeck Best for Same-Day Funding Yes Same-day funding Up to $250,000 for a loan; up to $100,000 for a line of credit Why You Should Trust Us
Frequently Asked Questions
What Is a Business Loan?
Are You Personally Liable for an SBA Loan?
What Can I Use a Small Business Loan For?
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