Best Small Business Loans
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If you are thinking of starting a small business, one of the first hurdles you may have to jump is raising the capital you need to run your business. While traditional bank loans can work, they are often more difficult to qualify for and may require more hoops to jump through. A more popular option is online small business loans, which are easier to qualify for and can deposit funds in your business account the next business day. We researched the best small business loans and put together in-depth reviews on the top companies.
Using your business as a baseline to determine your qualifications, OnDeck offers a variety of the best small business loans that can help you with expansions, cash flow issues and capital costs. Where other lenders use your personal credit to determine eligibility, OnDeck focuses on business performance.
OnDeck Review
- Best for: Those turned down for traditional loans. OnDeck takes into account the full financial story of your business, which may make it easier for some to be approved for a loan.
- Price: OnDeck offers term loans and lines of credit. Expect to see rates as low as 9.99% AIR for term loans [and 13.99%APR for lines of credit.]
- Loan amounts: Since OnDeck offers business loans, loan amounts are generally pretty significant, ranging from $5,000 to $500,000. How much you are approved for depends on your financial history.
- Loan length: OnDeck offers loans from 12 months to 24 months, so you will have a good amount of time to pay back the loan.
- Qualifications: Your business must have been running for at least a year. You also need to have a $100,000 annual revenue and at least one owner with a credit score of 500 or greater.
OnDeck has lots of options, making it the place with the best small business loans. Affordable interest, low-cost financing and flexible terms all come together to give you access to the cash you need at terms that won’t break your budget during repayment.
Common OnDeck Reviews
As an industry leader in small business loans, it should come as no surprise that the company often scores better than nine out 10 from users. In fact, 93 percent of reviewers rated the service as excellent, making it a stand-out for the industry.
Is OnDeck for Me?
If you need small business funding to grow your business, meet the cost of increasing your inventory or just to handle seasonal fluctuations, OnDeck offers some of the best small business loans out there.
When you need operating cash, a line of credit can come in handy. Sometimes a large customer order will cost a lot upfront and then leave you struggling until the invoice is paid. That’s where a Kabbage line of credit can come in handy. With the cash available, you can draw it out when you are cash poor and pay it back quickly.
Kabbage Review
- Price: Kabbage offers lines of credit at business loan rates between 1.5 and 10 percent.
- Qualifications: Your business will need to be at least a year old and have at least $50,000 in annual revenue or $4,200 in revenue each month for the last three months to get a Kabbage loan.
- Loan Amount: As a line of credit, there is no minimum amount, but the maximum is $150,000 per line of credit.
- Application Process: Simply fill out the easy online application for Kabbage and you’ll have a response within minutes. Once you’re approved, there’s no obligation to actually use the line of credit.
With most small business lending, you start paying for the funding as soon as you sign on the dotted line. Kabbage is a bit different. You get approved for the line of credit, but you only pay when you have an outstanding balance.
Common Kabbage Reviews
When looking at Kabbage reviews, you’ll often see professionals giving it an average rating, not because of the services they do offer, but because of the services they don’t. Whereas other lenders have a variety of small business financing options, Kabbage keeps things simple and streamlined and only offers one of the best small business loans available as a line of credit.
Is Kabbage for Me?
When you don’t have the best credit and your business is just getting off the ground, access to capital is a must. Kabbage is one of the best places to look into getting a business loan to support operational expenses.
Lendio does not directly fund a working capital loan or other small business financing request. Instead, they act as a broker. Lendio collects your information, pre-qualifies you and then matches you with prospective lenders.
Lendio Review
- Price: Lendio does small business lending a little differently. There’s no set rate because there’s no set lender. Instead, you get a variety of offers and select the one that makes the most sense for your business.
- Qualifications: To qualify for a Lendio loan, you must have an average revenue of at least $10K per month for six months, a credit score of at least 550 and no bankruptcy filings within the past three years.
- Loan Amount: You can apply for loans between $5,000 all the way up to $2 million.
- Application Process: You fill out one application and Lendio shops your business around to their network of lenders collecting offers. It can take anywhere from one day to four weeks to fund your loan.
With many lenders to choose from, you can find business loan rates that work for your business. The best small business loans are not always the ones with the lowest APR, so having more options is always a plus when getting a business loan.
Common Lendio Reviews
Lendio scores better than nine out of 10 on review sites, specifically because it has an easy application process and lots of options. Plus, Lendio does not charge you a cent for its services. Instead, all of its revenue comes from partners.
Is Lendio for Me?
If traditional financing takes too long or isn’t available to you, Lendio might be what you need to get one of the best small business loans out there. This platform, which matches borrowers to lenders, has more relaxed requirements than you’d find at a bank. If your business is ready to expand or your need a working capital loan, you can always put in an application and see the offers. There’s no obligation to sign.
Because Able Lending includes a peer-to-peer option, you have a lot of choices when getting a business loan. You can choose an entirely peer-funded loan and avoid any of the pre-qualification requirements for loans direct from Able.
Able Lending Review
- Price: The cost of small business loans can vary dramatically depending on the type of financing. Able Lending has a separate fee structure for each type of small business funding available.
- Qualifications: To qualify for most Able Lending loans, you will need to be in business for at least a year, have an annual revenue of more than $100,000 and maintain a personal credit score of 600 or better.
- Loan Amount: For growth and debt refinance loans, the minimum is $25,000 and the maximum is $1 million.
- Application Process: Because Able Lending offers peer-to-peer funding, approvals can take a little longer than some of the other options. During the application process, you’ll find out how much of your loan must be financed by a third-party and how much Able will fund once you’ve met the outside funding requirement.
Peer-to-peer financing is not the industry standard. The ability to take loans from family and friends and manage them through a platform like Able Lending gives you more options when seeking funds. You can show potential investors exactly how they will be paid, giving you access to the best small business loans because they are from family and friends.
Common Able Lending Reviews
Able Lending scores more than four stars from many professional sites purely due to its unique funding options. No other lender offers the breadth and scope of loan options and funding choices.
Is Able Lending for Me?
If you need a small business loan, Able Lending might be the right choice. Not only do they offer traditional SBA loans, they also offer invoice factoring and cash advances. With five different financing options, Able Lending leads the pack for flexible financing.
If you are looking for business insurance, you can check out Hiscox Insurance.
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