The best small business loans

The best small business loans

Small business loans are a financing tool for current or aspiring business owners that allow them to borrow money to buy, operate, or improve a small business. They give small business owners the money they need to invest and grow their business, and can mean the difference between closing a business and keeping it. They also ease financial stress for business owners by freeing up cash and helping them meet their business needs or help them expand to larger facilities or multiple locations. Rates, terms and requirements vary depending on the type of loan and the lender offering it.

We reviewed more than a dozen small business loans and compared them based on the type of loan offered, application process, loan requirements, terms, loan amount, and more. Read on to learn more about which small business loans are right for your growing business.

Best Small Business Loans in 2022

Best Overall: Cabbage

Ideal for SBA loans: Funder

Ideal for bad credit: Blue Vine

Ideal for microcredit: Kiva

Great for same day financing – fast financing

Perfect for new businesses: On Deck

BEST OVERALL Cabbage

Why choose this

Cabbage offers finance solutions designed specifically for small businesses and technology-based solutions for flexible financing.

what we like

Easy application process

fast financing

The app gives you easy access to your credit score

things i hate

Minimum time for business requirements

Cabbage was founded in 2008 as an online platform that connects small businesses with technology-enabled cash flow management solutions. Recently acquired by American Express, it introduced a new service platform called K Servicing to manage and execute loan payments entirely online.

The company offers lines of credit for small businesses, as well as account verification and payment processing services. There is a simple application process with less paperwork and fewer requirements than a regular bank. Its purpose is to make it easier for SMEs to get the money they need in a timely and hassle-free manner.

You can apply for a loan online and get approved right away. To qualify, you must have been open for at least one year and have a checking account. Loan terms typically range from 6 to 18 months and there are no prepaid penalties or hidden loan fees. 1 The line of credit depends on income, creditworthiness and other factors. Credit lines range from R$1,000 to R$150,000.

The company mixes in reviews that tend to be positive. Customers love websites, loan product lines and helpful small business resources, but some are unhappy with the lack of response from customer service agents. In addition to small business lines of credit and its validation and payment products, Cabbage provides resources for small business owners with customer stories, helpful tips and cash flow information.

Why do we choose?

Funder offers several SBA loans with a helpful section on how to apply and a breakdown of costs.

What we like

Small business loans of various types to choose from

Accounting, legal, personnel and other services provided on the site

Apply for an SBA loan directly on the website with various SBA lenders

Things that I hate

SBA loan requires a credit score of 680 or higher

Some loans require collateral, such as real estate or equipment, and in some cases inventory.

I am not a direct lender, so I work with several lenders.

Funder is an online loan marketplace for small business owners. In addition to Small Business Administration (SBA) loans, we specialize in term loans, equipment loans, lines of credit, and business credit cards. Founded in 2013, instead of lending money, it connects small businesses with the best loan options on the market. Works with major SBA lenders offering SBA 7(a), 504 loans and micro loans.

Fill out a simple loan application and compare dozens of loan options at once. The company then matches you with a loan officer to learn more about your business and what loan is best for you. You compare loans and then choose what you want. Your loan officer will be with you throughout the loan term to help you find the best loan products as your business grows.

The loans have different interest rates, requirements and terms, but the 504 loan is expected to have a repayment period of 10 to 25 years. The maximum loan amount is $5.5 million and the interest rate is the same as the Treasury rate. 2.23% is added from 5 to 10 years. by 2.39%. Resources.

Great for bad credit history

Blue Wine

Founded in 2013 as a Fin Tech start-up, Blue Vine offers cash management solutions for small businesses that may not meet the requirements of other banks and financial institutions. The founder was inspired by his father and his small business, so he avoids some difficulties that other small business owners had with his father regarding business financing and small business loans. Established a company to help.

Blue Vine offers credit lines for small businesses. We also provide a business blog with business account verification, bill payments, maintenance, and tips and tricks. The company’s goal is to enable companies with volatile cash flows to get the money they need quickly, without strict requirements.

Great for microloans

Kiva

Founded in 2005 in San Francisco, California, Kiva is a global non-profit company that provides crowd funding loans to low-income earners. The company also has offices in Portland, Bangkok and Nairobi and has employees around the world. It is a peer-to-peer lending platform that allows investors to help fund financing to those who would otherwise have no access to capital. He believes that many people do not have access to the funds they need and that more financial inclusion is needed for everyone.

The interest rate on the Kiva loan is 0% and the maximum loan amount is $ 15,000. Loans have a maximum maturity of 36 months. 3 Before moving to the wider Kiva community, first contact your family and friends via the platform.

As a lender, you can also give gifts and donations to Kiva in addition to your loan. Lenders can choose where to direct their funds, which fosters a sense of community and connection between members. You can borrow just $ 25 on Kiva and 100% of the loan amount will go to fund the loan on the platform.

Kiva has recruited millions of borrowers and lenders to fund over $ 1.71 billion in loans in 76 countries. The company also has an app to make it more accessible.

Great for same day financing

fast financing

Rapid Finance was founded in 2005 in Bethesda, Maryland as a high-tech financial services company. We provide working capital to small and medium-sized businesses across the country. There are different financing options for different industries and sectors. It specializes in fast financing and offers an exclusive loan for a short term of 3 months.

The company offers small business loans, business lines of credit, SBA loans, business cash advances, invoice factoring, bridge loans, asset-based loans, and business mortgage loans. In addition, the site has business resources such as small business guides and blogs with industry news and tips. Fees and terms vary by loan type, but small business loans last from 3 to 60 months and require a bank account to raise funds. four

Sign up for a contact online or by phone and get a quote in minutes. Funds from some loans can be used for business expansion, marketing solutions, equipment leasing, technology upgrades, working capital, etc. hours after order approval.

The company has financed more than $2 billion in loans in a variety of industries.

Ideal for new businesses.

On deck

Founded in New York in 2006, On Deck uses proprietary software and algorithms to edit a company’s financial data to determine loan eligibility. The company offers term loans and lines of credit. He financed a $13 billion loan.

Most loans can be applied for on the spot or over the phone with a mortgage advisor, and it usually only takes 10 minutes. Loans are generally approved the same day and some are funded the same day. If your new business needs cash, these quick trips can come in handy as the minimum loan amount is only $5,000.

The loan requires a credit score of 600, an annual business, a checking account, and a total annual income of $100,000.

Term loans range from $5,000 to $250,000, with an early payment option and the option to request more money if the loan is paid off in the middle. The maximum term is 24 months. Interest rates start at 35% and average 54.96%. 5

The credit line has a 12-month repayment term and is available in amounts ranging between 6,000 and 100,000 reads. These interest rates start at 35.9% and average 47.14%. 6

A team of US loan counselors will answer your questions and help you through the entire loan process. Customers have left generally positive feedback, praising the easy financing process and quick financing times.

final verdict

We focus on various direct lenders, the loan market, and lenders that offer small business loans. Some lenders provide same-day financing, others offer short-term loans, and others have more generous loan requirements. We have selected the best small business loans and each one has something different to offer.

However, it is recommended that you check out Cabbage first. The company has a simple application process and quick loan approval.

compare providers

How Do Small Business Loans Work?

Loans for small businesses depend on the type of loan, the lender, and the amount of the loan.

For example, a restaurant loan may look different from an online business loan. You typically apply for a small business loan over the phone or online, and when the loan is approved and you receive the loan, you receive payment in the form of a ball. This is accompanied by agreed payment terms, including the loan amount, including specific interest rates, payment schedules, and fees.

This affects your monthly payments and the total cost of your loan, so it’s important to know in advance all the costs of your loan, including issuance or prepaid penalties.

How to get a loan for a small business?

To qualify for a small business loan, you typically need the following:

It has been open for at least a year.

Have an annual income of over $ 50,000

Minimum credit score 550

No recent bankruptcy or foreclosure

Doing business in the sector where the lender does business

Have a checking account

Keep in mind that small business loan eligibility varies greatly depending on the type of loan and the lender. Get the answers to all your questions in advance so that you know what your loan requirements and expectations are.

Which credit score do I need to qualify for a small business loan?

In general, the higher your credit score, the better the rates and loan terms you see and the longer you will save money. Although each lender and loan type has its own credit score requirements, the 550 is generally the lowest accepted credit score for a business loan. Of course, there are exceptions.

What can a small business loan be used for?

The lender and loan type determine what you can use your small business loan for. Small business loans can typically be used to buy inventory, buy business-related equipment, and secure working capital, pay salaries, and use for marketing and advertising. With some loans, you can also use your money to buy real estate and grow your business. . Work.

Methodology

We considered more than 12 small business loans before making a choice. Compare the best small business loans based on various factors such as the type of loan offered, application process, loan amount, terms and qualifications. Also, check out the additional services that your company offers.

All of our options are owned by a reputable company with an easy-to-use website and offer reasonable terms with competitive rates and maximum loan amounts.

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