Find the best small business loan company for you
Starting and running a small business can be financially demanding. While some entrepreneurs have enough personal savings to finance their business, others need external funding. Small business loans can provide the funds needed for everyday operations, expansion, and hiring new employees.
However, securing a small business loan is not as easy as it sounds. Banks and other financial institutions require businesses to meet strict criteria that may be difficult for a small business to meet. They also require extensive documentation to be submitted.
Fortunately, there are online lenders that offer small business loans quickly and efficiently. In this guide, we’ll review the top small business loan companies for entrepreneurs seeking funding. We’ll look at the interest rates, terms, loan amounts, and other factors to help you make an informed decision.
What to look for in a small business loan company
When choosing a small business loan company, there are several factors to consider:
Loan terms
Loan terms are the conditions and requirements that determine how much you can borrow and how long you have to repay it.
Interest rates
The interest rate is the percentage of the loan amount that you pay in addition to the principal amount.
Fees and charges
Be aware of any fees and charges associated with the loan. These can include origination fees, prepayment penalties, and late payment fees.
Loan amounts
Some lenders specialize in small loans, while others offer larger amounts. Look for a lender that can provide the amount you need.
Repayment options
Some lenders offer flexible repayment options, such as deferred payments or a payment plan that adjusts to your cash flow.
Approval time
Approval time is the amount of time it takes for the lender to process your application and provide the funds. If you need the funds urgently, look for a lender that can provide quick approval.
Customer service
Customer service is an important factor to consider when choosing a lender. Make sure the lender provides excellent customer service and support throughout the loan process.
The top small business loan companies
Here are the best small business loan companies that we recommend:
Loan company |
Loan amount |
Loan terms |
Interest rate |
Fees and charges |
Approval time |
|---|---|---|---|---|---|
1. Lendio |
$500-$5,000,000 |
1-5 years |
Starting at 4.00% |
Origination fee, closing fee |
As little as 24 hours |
2. BlueVine |
$5,000-$5,000,000 |
6-12 months |
Starting at 4.8% |
Origination fee |
As little as 24 hours |
3. Fundbox |
$1,000-$100,000 |
Up to 24 weeks |
Starting at 4.66% |
Weekly fee |
As little as 24 hours |
4. OnDeck |
$5,000-$500,000 |
3-36 months |
Starting at 11.89% |
Origination fee, late payment fee |
As little as 24 hours |
5. Kabbage |
$2,000-$250,000 |
6-12 months |
Starting at 1.5% |
Monthly fee |
As little as 24 hours |
Frequently asked questions
1. How do I know if I’m eligible for a small business loan?
Eligibility requirements vary by lender, but most lenders will require the following:
- A credit score of at least 600
- A minimum of 1 year in business
- An annual revenue of at least $50,000
2. How long does it take to get approved for a small business loan?
With online lenders, approval can take as little as 24-48 hours. With traditional lenders, it can take several weeks.
3. Can I apply for a small business loan if I have bad credit?
It’s still possible to get a loan with bad credit, but it may be more difficult. Consider working with a lender who specializes in bad credit loans.
4. How much can I borrow with a small business loan?
The amount you can borrow varies by lender, but it can range from $1,000 up to $5,000,000.
5. Can I get a small business loan without collateral?
Yes, some lenders offer unsecured loans that do not require collateral. However, these loans may have higher interest rates and stricter eligibility requirements.
6. What is the typical interest rate for a small business loan?
The interest rate for a small business loan varies by lender and depends on factors such as the borrower’s credit score, revenue, and time in business. Rates can range from 4% up to 30%.
7. What happens if I can’t repay my small business loan?
If you can’t repay your loan, the lender may take legal action to recover the funds. Your credit score may also be negatively affected.
Conclusion
Small business loans can help entrepreneurs get the funds they need to start or grow their businesses. When choosing a small business loan company, look for a lender that offers flexible loan terms, competitive interest rates, and excellent customer service. With the help of this guide, you can find the best small business loan company for your needs.
Don’t wait any longer to take your business to the next level. Apply for a small business loan today!
Closing Disclaimer
This article is for informational purposes only and does not constitute financial advice. You should consult with a financial advisor before making any investment decisions. We do not endorse any of the lenders mentioned in this article and are not responsible for any financial losses or damages incurred from their use.