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Bankrate uses a careful methodology to select the top lenders for small business loans. You can compare the main features and pros and cons easily.
Click "get personalized rates" and fill out some information to see what loans you may be qualified for.
Bankrate will show you which lenders you match with. You can choose one and apply if you are qualified.
When you’re comparing the best business loans, it’s important to take multiple factors into consideration.
Decide which features of a loan are most important for your business, such as flexible terms or startup support, and then take a closer look at the lenders we mentioned by diving into their features below.
National Funding stands out from competitors due to its fair lending terms, high loan amounts and solid eligibility requirements. Lenders especially enjoy National Funding's early payoff discounts, which is novel in the small business loans space.
Customers love QuickBridge's wide variety of financial products, from working capital loans to unsecured business loans. On top of that, QuickBridge also offers fast funding, giving borrowers their money in just one business day.
In addition to fast funding and fair loan terms, you can apply for a loan with Fora Financial without impacting your credit. Fora does a soft pull when you apply, and only conducts a hard credit check once you've been approved. This makes it highly popular for borrowers shopping around with several different lenders at once.
iBusiness Funding is popular with borrowers because of its flexible repayment terms. Loan terms range anywhere from six months to 30 years, giving businesses of all kinds and sizes an opportunity to access fresh capital.
Fundbox only requires three months in business and $30,000 in revenue to qualify for one of its loans. It offers fast approval and flexible repayment terms on its lines of credit, making it a good option for newer businesses that are just getting up and running.
You can qualify for American Express's Business Blueprint line of credit with just $3,000 in monthly revenue. You'll need to have at least a year in operation and fair credit. Line of credit amounts can range from $2,000 to $250,000, making it a good flexible option for newer businesses or businesses with lower revenue.
Applicants need only a minimum credit score of 550 to qualify for a loan with Credibly. This lender can fund in as little as one business day, and loan amounts can be as high ast $400,000 depending on your creditworthiness.
Ondeck can be an ideal fit for startups looking for short-term loans. It has relaxed eligibility requirements compared to other lenders and even offer same-day funding in some cases. This is especially useful for companies that need fast capital.
Bank of America is one of the country's oldest and most well-known financial institutions. While there are plenty of competitive online lenders on the market, Bank of America gives borrowers the benefit of face-time at any branch location as well as online or over the phone. For those who value real-time guidance through the loan process, this is exceptionally helpful.
Wells Fargo is our 2025 award winner for good-to-excellent credit borrowers. The bank, which operates in most states, offers competitive rates and lines of credit of up to $1 million. Wells Fargo offers loans and terms to meet the needs of businesses at all stages of their journeys.
Since 1994, the Accion Opportunity Fund has been providing far more than just loans to budding small businesses. The community development financial institution (CDFI) also offer hands-on advising for business owners and webinars about a variety of topics related to entrepreneurship. Like all CDFIs, Accion specifically targets small-businesses that are located in, or serve underserved communities.
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Bankrate can help you find the right lender by allowing you to compare rates, fees, limits and requirements all in one place. Use our loan calculator to get started and get matched with the best lender for your needs.
Taking on too much debt can quickly spell the end for your business, especially if you have a low-revenue month or are low on cash reserves. Before you apply for a loan, it’s a good idea to assess your debt-to-income ratio and use a business loan calculator to determine how much you’re comfortably able to borrow.
In general, you shouldn’t borrow more than 36 percent of your business’ annual income. This counts for all debts you hold, so keep this in mind if you have multiple loans and balances.
Keep in mind that business loans can have daily, weekly or monthly payments, and taking on a payment schedule and amount that you can handle can prevent you from missing payments or defaulting.
Getting the capital your business needs doesn’t have to be complicated. Let Bankrate walk you through the process and help you find the right loan for you.
Each lender has its own set of eligibility criteria for small business loans. That said, you’ll want to keep some general guidelines in mind as you research your options and prepare to apply for a business loan. Bankrate has additional resources that can help you prepare.
Most lenders will typically evaluate the following to determine if you’re a good fit for a small business loan:
A business loan makes sense when it helps a company grow or overcome a business challenge without creating unsustainable level of debt. Taking out a loan can be a very prudent way to raise capital, assuming the business has a strong credit profile, consistently positive cash flows and a well-defined plan for using the money and repaying the debt.Thomas Brock: CFA, CPA
When shopping for loans, consider prequalifying with us. Bankrate offers multiple benefits if you decide to prequalify on our site, including:
There are a huge variety of loans, lending products and lenders to choose from in the business loan sphere. Which one is right for your business will depend on your needs, limits and priorities. Here’s what you should consider.
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Small business loans can be used for a variety of purposes, making them a versatile and popular lending product.
Learn moreSmall-business loans can unlock all sorts of growth opportunities for your business, or help you through tough times; however, they're not right for every situation. Make sure you weigh the pros and cons of taking out a small-business loan before you sign any paperwork.
There are several types of small business loans to choose from. Some have more stringent requirements than others, particularly those offered by traditional banks. But online lenders typically have options available for new businesses and business owners with fair or bad credit.
Here’s a closer look at the different business loan options available.
Term loan
The most common type of business loan among startups and established companies, term loans let you borrow a lump sum to cover business expenses. You then repay the loan over the agreed-on repayment term with interest. Term loans are accessible through most banks and credit unions, and loan amounts range from $1,000 to the millions.
To qualify for a term loan, you’ll likely have to generate a sizable amount of revenue and provide a personal guarantee to qualify for funding. Plus, you can expect higher borrowing costs if you’re starting out in your business.
Best for:
Line of credit
Lines of credit provide access to a pool of funds you can repeatedly draw from up to your credit limit. While a term loan charges interest on the total borrowed amount the moment you receive funds, with a line of credit, you only pay interest on the funds you use. You also have the flexibility to withdraw more funds as you have more credit available, such as after you repay past loans.
There are drawbacks, including the limited draw period or time frame that you get to access the line of credit before it closes. The upside is that some lenders allow you to make interest-only payments during the draw period, which can be beneficial if you’re trying to get your company’s cash flow back on track.
Best for:
SBA loan
Backed by the Small Business Administration, SBA loans are loan products featuring competitive rates and generous loan terms to meet the needs of small business owners. They’re accessible through SBA-approved lenders you can locate through the SBA Lender Match Tool, but they come with a few downsides.
Though the SBA’s intention is to provide small business owners with the funding they need, SBA loans come with an application process that’s challenging to navigate. Plus, it could be several months before the loan proceeds are disbursed to you.
Best for:
Equipment financing
Equipment loans let business owners purchase business-related equipment such as machinery, office furniture, tools and computers. This type of loan can be beneficial if you don’t have the funds available to cover the costs of vital resources to keep your business operating efficiently.
Business owners should consider equipment loans for several reasons. Since the equipment acts as collateral for the loan, interest rates tend to be more favorable compared to unsecured term loans. Lenders are also more likely to approve startups and bad credit borrowers, making equipment loans accessible to more business owners.
Best for:
Invoice financing and factoring
Both invoice financing and invoice factoring allow you to borrow against your unpaid receivables. They’re both accessible types of business loans, often open to startups and bad-credit borrowers. To get approved for these loans, lenders are more concerned with the creditworthiness and repayment history of your invoiced clients.
There’s a key difference between the two. Invoice financing involves receiving an advance of your company’s accounts receivables that you’ll repay the amount borrowed (plus fees) once the client pays you.
If you choose invoice factoring, you’ll sell the outstanding invoices directly to the lender in exchange for a lump sum of up to 90 percent of what’s owed. The client will pay the lender directly, and any amount that remains after fees are deducted will be distributed to you.
Best for:
Microloans
These loans are available as SBA-approved microloans or through non-profits, banks and online lenders offering their own microloan programs. With most microloans, you can access up to $50,000 in working capital or startup funding for your business.
These loans tend to relax eligibility requirements by accepting lower credit scores, making them a more accessible type of loan. Some lenders will also offer mentoring and resources to help your business succeed beyond finances.
Commercial real estate loan
You can use a commercial real estate loan to purchase or lease a physical space for your company. Some lenders offer up to $5 million in funding with extended repayment periods and competitive interest rates.
Qualifying may be difficult if you’re starting out or your revenue is on the lower end. Plus, you can expect a lengthy application process.
Merchant cash advance
You can access funding to meet your company’s short-term needs with a merchant cash advance. Funds are disbursed in a lump sum and payable to the lender through a percentage of your daily or weekly sales — typically over a short loan term of one year or less. Lenders use your debit and credit card sales volume to determine the amount you’re eligible to borrow, so bad credit isn’t necessarily a deal-breaker.
Merchant cash advances are a type of bad credit business loan. Instead of interest rates, it charges factor rates. These typically come with faster repayment terms and may even end up costing more than comparable loans that use interest rates.
From lines of credit to microloans, find the right lending product for your unique business needs.
Learn moreSelecting the right lender for your business loan can set you up for long-term success, especially if you decide to use your lender for multiple loan products in the future.
When considering a lender, you’ll want to think about the following factors:
While lenders will differ in their offerings and approaches, different types of lenders can offer different pros and cons.
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