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Top 10 Loans for Small Businesses to Expand in 2023

small business loans
Written by William Jameson
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Read Time:24 Minute, 39 Second

Running a business requires capital. It is natural to wonder how to get a small business loan if you’re responsible for or own a small business. A business that has been started recently falls under small businesses. They have fewer employees and a low revenue rate. To expand a business, business loans are sometimes employed. Moreover, small business loans for bad credit are also utilized to boost business revenue. Loans give the necessary capital to hire new employees, purchase equipment, etc. there is another advantage to loans, you don’t have to sell equity of your company to get loans, and the company remains your own.

There are three places to look for business loans, banks, credit unions, and online lenders. Here, we have listed some amazing options for the best small business loans to look for. 

An Overview of the 10 Best Small Business Loans

Loan Name  Loan Term APR Loan Amount Credit Score Time to get Money
BlueVine 6 to 12 months 20% to 50% $250,000 625 12 to 24 Hours
American Express Business Blue Print 12 to 18 months 15.75% to 27% $250,000 640 12 to 24 Hours
Fundbox 12 to 24 weeks 10% to 79.8% $150,00 600 12 to 24 Hours
OnDeck 24 months 29.9% to 97.3% $100,000 625 12 to 24 Hours
Tab Bank 12 to 60 months 8.99% to 35.99% $200,000 650 12 to 24 Hours
SBA Loans 10 to 25 years 10.00% to 12.50% $500,000 650 3 to 4 months
Funding Circle Business Loans 7 years 5.99% to 16.49% $500,000 650 3 working days
Credibility Capital 5 years 9.49% to 15.49% $500,000 625  3 to 5 days
Lending Club 3 to 5 years 5.99% to 29.99% $200,000 650 3 working days
National Funding  4 to 24 months 15% to 30% $500,000 600 to 650 12 to 24 Hours

Detailed Review of the Top 10 Best Small Business Loans 

1. BlueVine

BlueVine

It is a fintech company that provides loans for small businesses nationwide. BlueVine’s small business loan is issued by the Celtic bank, a Utah-chartered industrial bank. They offer loans up to $250,00 and charge an APR that ranges between 20% and 50%. There are no prepayment fees, monthly maintenance fees, or account closure fees. They charge $15 for wire transfers and a fee is charged for late repayment, depending upon your loan agreement.

BlueVine loans offer small-term loans for 6-12 months. The money for your bad credit loans to small businesses is generally transferred the same day you apply. However, it may take up to 3 working days to process the transaction. This loan is considered among the best small business loans for its quick funding and high credit limit. The credit score requirement for this small business loans bad credit is quite low, starting from about 650. 

Features

  • This company offers loans up to $ 250,00.
  • It charges an APR that ranges between 20% to 50%. 
  • There are no prepayment fees, monthly maintenance, or account closure fees.
  • BlueVine loans offer small-term loans for 6-12 months.
  • The credit score requirement is quite low, about 650 and above.

Pros

  • Low credit scores are accepted.
  • No prepayment, closure, or maintenance fees are required.

Cons 

  • They have short-term repayments, which may be difficult for startups where profits are not consistent.
  • APR is high compared to other lenders.

2. American Express Business Blue Print

Business BluePrint

Kabbage was renamed American Express Business Blueprint in February 2023. It has an easy and smooth application process, you can link your checking account to have a hassle-free transaction. A minimum credit score of 640 and above are accepted. This small loan offers a loan limit of $200,00 to $250,000. The loan terms offered by this company are 6, 12 to 18 months. That has a variable interest rate, 2% to 9% for 6 months, 7.5% to 18% for 12 months, and 15.75 to 27% for 18 months.

The funds are transferred within the same day you apply, it may take 3 working days to process the fund. This loan is considered among the best small business loans for its quick funding and high credit limit. There are no prepayment fees, monthly maintenance, or account closure fees. They charge some fees for late repayments depending upon your loan agreement. This card provides small business loans for businesses that are older than 1 year and generate annual revenue of $36,000.

Features

  • It has an easy and smooth application process.
  • Minimum credit scores of 640 and above are accepted.
  • This loan offers a loan limit of $200,00 to $250,000.
  • The loan terms offered by this company are 6,12 to 18 months, which has a variable interest rate, 2% to 9% for 6 months, 7.5% to 18% for 12 months, and 15.75 to 27% for 18 months.
  • This card provides small business loans for businesses that are older than 1 year and generate annual revenue of $36,000.

Pros

  • This loan offers a high credit limit of $200,00-$250,000.
  • It follows a monthly repayment model, which is better than a weekly or daily repayment model.
  • There are no prepayment fees or maintenance fees.

Cons

  • Must have a PayPal account for cash flow.
  • Confusing monthly repayment structure.

3. Fundbox

Fundbox

Wondering how to get a small business loan from Fundbox? Well, this loan focuses mainly on providing small business loans for startups that need cash flow for growth. The funds are transferred within the same day you apply but it may take up to 3 working days for them to get processed. Minimum credit scores of 600 and above are accepted, and they provide personal loans for bad credit as well. These loans offer a limit of $150,000 and charge an APR that ranges between 10% and 79.8%. 

The maximum loan term is 24 weeks. It follows a weekly repayment model. There are no prepayment fees, monthly maintenance, or account closure fees. They charge some fee for late repayments, depending upon your loan agreement. Usually, lenders provide business loans for businesses that are older than 1 year, but Fundbox provides loans for businesses that are as less than 6 months old. However, the business should generate at least $100,000 annually.

Features

  • The funds are transferred within the same day you apply, it may take 3 working days to process the fund.
  • A minimum credit score of 600 and above are accepted. 
  • This loan offers a loan limit of $150,00.
  • The maximum loan term is for 24 weeks. It follows a weekly repayment model.
  • Fundbox provides loans for small businesses that are 6 months old.

Pros

  • Easy and Smooth documentation process.
  • A minimum credit score of 600 and above is accepted. Which makes it easier to secure bad credit loans for small businesses.
  • It is a perfect choice for startups.

Cons 

  • The Interest rates are high compared to other loans.
  • Weekly repayments can be difficult for small businesses. 

4. OnDeck

OnDeck

If you are facing obstacles in qualifying for traditional bank loans, and wondering how to get small business loans, OnDeck could be the right choice for you. They provide easy short-term loans and have an easy application process. The funds are transferred within a day but it may take up to 3 working days to process them. Credit scores of 625, and above, are accepted, and you can get bad credit loans small businesses. To secure a loan, you need not provide any collateral to the bank. 

The bank will line out your business for the loan. This loan offers a loan limit of $100,00 and charges an APR that ranges between 29.9% to 97.3%. The bank charges 0% to 4% origination fees on the total amount. The maximum loan term is 24 months and they follow a weekly or daily repayment model.  This card provides business loans for businesses that are older than 1 year and generate annual revenue of $100,000 or more.

Features

  • The funds are transferred the same day you apply, it may take 3 working days to process the fund. 
  • A minimum credit score of 625 and above are accepted.
  • To secure a loan you need not provide any sort of collateral to the bank.
  • This loan offers a loan limit of $100,00 and charges an APR that ranges between 29.9% to 97.3%. 
  • The maximum loan term offered is 24 months.

Pros

  • Accepts Borrowers with bad credit scores.
  • Funds will be available on the same day you will apply.
  • Easy and smooth documentation process.

Cons

  • OnDeck does not provide service in Nevada, North Dakota, and South Dakota.
  • It follows a weekly repayment model. That is not good for small business financing.

5. Tab Bank

Tab Bank

This Bank offers business loans for small businesses, with fair to excellent credit scores. This loan offers a loan limit of $200,000 and charges an APR that ranges between 8.99% to 35.99%. The maximum loan term is for 24 weeks. It follows a monthly repayment model. There are no prepayment fees, monthly maintenance, or account closure fees. They charge some fees for late repayments depending upon your loan agreement. 

Tab Bank loans should answer the question of how to get a small business short-term loan satisfactorily, as they are considered among the best small business loans for their quick funding and high credit limit. This card provides business loans for businesses older than 2 years and generates annual revenue of $100,000 at least.

Features

  • This bank provides loans for small businesses with fair to excellent credit scores.
  • This loan offers a loan limit of $200,000.
  • The bank charges an APR that ranges between 8.99% to 35.99%.
  • The maximum loan term is for 12 to 60 months.
  • This card provides business loans for small businesses that are older than 2 years and generate annual revenue of $100,000.

Pros

  • There are no prepayment fees, monthly maintenance, or account closure fees. 
  • The loan term ranges from 12 to 60 months that’s a long time compared to other lenders.
  • Easy and smooth documentation process.

Cons

  • It requires a good credit score to get this loan.
  • The bank charges documentation fees and origination fees.

6. SBA Loans

SBA Loans

These loans are issued by banks and partially guaranteed by America’s Small Business Administration. It aims to support startup costs in its expansion. These loans have low-interest rates and are easy to qualify for, making them one of the best small business loans. You can apply for SBA loans from banks, and credit unions. The lenders apply for a loan guarantee, if the borrower fails to pay the money, then the government will pay the lender the guaranteed amount. 

There are three types of SBA loans, SBA 7(a) Loan, SBA Express Loan, and SBA 504 Loan. For getting one of these small business loans you have to present collateral against it, which is usually 20% of the business. The interest rate is low, compared to other lenders and the small business loan rates are around 10.00% to 12.50%. You need a credit score of at least 650, to answer your query about how to get a small business loan from SBA. However, keep in mind it takes a long time to process the funds somewhere around 3 to 4 months.

Features  

  • It aims to support startup costs in its expansion.
  • These loans have low-interest rates and are easy to qualify for.
  • You can apply for SBA loans from banks, and credit unions.
  • There are three types of SBA loans, SBA 7(a) loan, SBA Express Loan, and SBA 504 Loans.
  • The small business loan rates are around 10.00% to 12.50%.

Pros

  • The interest rates are low compared to other lenders.
  • These business loans aim towards helping startups to expand.
  • The loan terms are longer around 10 to 25 years.

Cons

  • It takes a long time for the funds to process.
  • It requires a high credit score.

7. Funding Circle Business Loans

Funding Circle

It is a fintech company that provides loans for small businesses online. The loan limit is around $250,000 to $500,000. It charges an interest rate of around 5.99% to 16.49%. They charge 5.99% as an origination and documentation fee. There are no prepayment fees, monthly maintenance, or account closure fees. 

However, it charges a 5% late fee for missed repayments. The maximum loan term is for 7 years and a monthly repayment model is followed. If you ever require an emergency loan, don’t worry. The borrowed amount is transferred within 3 days of applying, and it may take 7 working days to process the fund. You need a minimum credit score of 650 for getting a small business loan, in case you want to learn how to get a small business loan from Funding Circle. 

Features

  • The loan limit is around $250,000 to $500,000.
  • It charges an interest rate of around 5.99% to 16.49%.
  • They charge 5.99% as an origination and documentation fee. 
  • It charges a late fee of 5% for missed repayment amounts.
  • The maximum loan term is for 7 years. 
  • The minimum credit requirement is 650 to get bad credit loans small businesses.

Pros

  • Funds are transferred within 3 working days.
  • There are minimum revenue criteria to get this loan.
  • The loan term is up to 7 years.

Cons

  • Requires collateral and personal guarantee.
  • The minimum credit score required is high.

8. Credibility Capital

Credibility Capital small business loans

If you are interested in expanding your small business or want to refinance a costly debt, this loan will be helpful for you. A minimum credit score of 625 and above are accepted, and you can get bad credit loans small businesses. This loan offers a loan limit of $500,000 and charges an APR that ranges between 9.49% to 15.49%. The maximum loan term is for 5 years. It follows a monthly repayment model. 

If you wanna know how to get a small business loan from Credibility Capital, we will tell you a few important things. There are no prepayment or monthly maintenance fees. However, there is an account closing fee of around 2.99% to 4.99%. Getting loan approval takes about 3 to 5 days. The funds are transferred within 3 days of you applying, it may take 5 working days to process the fund. This card provides business loans for small businesses that are older than 2 years and generate annual revenue of $200,000 or more.

Features

  • A minimum credit score of 625 and above are accepted.
  • This loan offers a loan limit of $500,000.
  • This company charges an APR that ranges between 9.49% to 15.49%.
  • The maximum loan term for small business financing is for 5 years. 
  • There is a closing account fee of around 2.99% to 4.99%.
  • Getting a loan approval takes about 3 to 5 days.

Pros

  • Interest rates are lower compared to other lenders.
  • There are no prepayment fees or monthly maintenance fees.
  • Getting loans for small businesses takes about 3 to 5 days.

Cons 

  • For getting a loan you should have higher revenue.
  • Requires collateral and personal guarantee. 

9. Lending Club

LendingClub

When you are broke, distraught about your business failing, and wondering how to get a small business loan to turn it all around, Lending Club can give you a lot of options. It is a platform where borrowers meet investors who want to fund their businesses by giving small business loans. The requirements are easy, you need a high credit score and a credit history for the last 3 years. The loans offered charge APR ranging from 5.99% to 29.99% and the loan terms are usually of 3 to 5 years. 

Lending Club charges around 1.99% to 6.99% as origination and documentation fee. They follow a monthly repayment model. Make sure your business has a debt-to-income ratio below 40%. A drawback of these loans is that a lot of time is taken to process the funds.

Features

  • It is a platform where a borrower meets with an investor who wants to give loans for small businesses. 
  • You have to have a high credit score and a credit history of 3 years.
  • The loans offered charges APR ranging from 5.99% to 29.99%. 
  • The company offers loan terms of around 3 to 5 years.
  • They charge around 1.99% to 6.99% as an origination and documentation fee.

Pros

  • This platform provides a great opportunity for startups to raise funds.
  • The loan term is longer than other banks.
  • The revenue requirement of your business is low.

Cons 

  • You need to have a high credit score for your small business financing.
  • They charge around 1.99% to 6.99% as an origination and documentation fee which just increases the expense. 

10. National Funding 

National Funding

If you want to apply for small business loans from National Funding, you should get to know about them a little bit. This private company was established in 1999, and since then it provides loans for small businesses. They offer two types of loans, business term loans,s and equipment financing. Business term loans are used to expand your business, whereas equipment financing can be used to purchase new machinery and pieces of equipment. The documentation process is fast and easy, you can get approval within 24 hours. For the loan to process you have to pay a documentation fee that is around 1.00% to 2.00%. 

This National Funding loan is considered among the best small business loans due to its fast funding and low interest. National fundings charge an APR of around 15% to 30%. The loan term offered is up to 4 to 24 months. They follow a weekly repayment model. The maximum loan amount offered is $500,000. However to qualify for this loan you should have a credit score of around 600 to 650, so you can easily qualify for bad credit loans small businesses. The other requirement is that your business should be 6 months old and should generate a revenue of $250,000 annually. 

Features

  • They offer two types of loans, business term loans,s and equipment financing.
  • The documentation process is fast and easy, you can get approval within 24 hours. 
  • National fundings charge an APR of around 15% to 30%. 
  • The loan term offered is up to 4 to 24 months.
  • The maximum loan amount offered is $500,000. 

Pros

  • You get the loan on the same day you applied.
  • Having a bad credit score will not create any obstacles in qualifying for the loan.
  • The maximum loan amount offered is high compared to other lenders.

Cons

  • A weekly repayment model can be difficult for startups.
  • The overall expense to get a loan turns out to be expensive, with origination fees and weekly interest.

Types of Loans for Small Businesses

Types of Loans for Small Businesses

If you are wondering how to get a small business loan you must also want to know about their types, and which of them are relevant to you. There are mainly 4 types of loans that help small businesses. These loans vary based on the maximum loan amount, APR, and loan term. Here are four types of small business loans:

Short-term Loans

These loans are best for people who want quick funds for their business. You can get approved for these loans within a short span of 24 hours. The max loan amount offered is around $1,000 – $500,000, for a period of 1 to 2 years. To qualify for these loans, you need to have a credit score of 560. However, keep in mind that it requires a personal guarantee or collateral.

SBA Loan

These loans are issued by banks and partially guaranteed by the American Small Business Administration. It aims to support startup costs in its expansion. These loans have low-interest rates. There are three types of SBA loans, SBA 7(a) loan, SBA Express Loan, and SBA 504 Loans. For getting any of these bad credit loans small businesses loans you have to give collateral against it, usually 20% of the business. The interest rate is around 10.00% to 12.50%. You have to have a minimum credit score of 650. However, keep in mind it takes a long time to process the funds somewhere around 3 to 4 months.

Business Credit Card

If you are someone who gets rejected on applying for loans. Using a Business credit card would be the right choice for you. The max loan amount offered is $500,000 you do not need to fill out any paperwork to get money. The interest rate is around 8% to 24%. Sometimes, some cards offer 0% intro APR for some time. 

Equipment Financing 

These types of loans for small businesses can be used in purchasing equipment or financing machinery. The max loan amount is $5,000,000. The funds are quick. And the usual APR is 7.5%. There are some requirements to get this loan such as your business should generate a revenue of $50,000 annually and it should be 3 to 6 months old. You won’t need to put in any deposit or collateral to get a loan, the equipment serves as collateral. However, to qualify for these loans you should have a credit score of 650 and above.

How Do Small Business Loans Function?

Small businesses employ 2 out of every 3 Americans. If you own a small business, you understand that cash is important to sustain and expand a business and can be thinking “ how to get a small business loan “. Now, business loans are available by lenders to borrowers for a certain period of time, there are interest rates during that period. The lender sets the max amount and interest rates. You have to repay the money you borrowed on a monthly or weekly basis depending on the terms and conditions.

There are various types of loans for small businesses, which provide loans to businesses having good credit scores and bad credit loans small businesses. Usually, any type of business loan follows these steps:

  • In the beginning, you apply for the loan.
  • The lender then approves your loan and provides it for a certain cost, which includes the interest rate and origination fee.
  • You provide collateral or a personal guarantee to pay the loan back.
  • Finally, you receive the money in a lump sum or as a line of credit.
  • Now, according to the loan repayment model, you diligently pay back the money you borrowed.
  • If you don’t repay your loan, you may lose your collateral.

How to Select the Right Loans for Small Businesses?

Now that you know how a business loan works. So, let’s get to know how to select the right loan for your business. 

Maximum Loan Amount Offered

Before applying, make sure that you check the loan limit, and check whether it is sufficient for your business operations. Lenders often offer a max limit of around $5,000 to $5,000,000. Before sanctioning the loan the lender checks the revenue of the company and its growth opportunities. 

Cost of the Loan

While comparing loans, do not consider only the interest rates. Look for documentation fees and origination fees as well. Some loans have these fees and can increase the overall cost.

Mode of Fund Transfer

There are usually two types of methods that the lender may use to transfer funds, installment loans, and lines of credit. In installment loans, the lender transfers the whole amount at once. On the other hand, in a line of credit model, the lender sets a maximum limit and the borrower can withdraw money at any point in time. Depending on your requirements you can pick any one of these.

The Potential of Your Business

To provide small business financing, the investor/lender asks you about your vision and how you will use funds to achieve your vision. If they find there are growth opportunities and they can earn money with their investment. You can get easy approvals for the loan. 

Collateral Against the Loan

Business loans are secured loans so, to get one you have to provide the lender with some collateral against the loan. The collateral can be any equipment, or assets like land, home, etc. Some lenders can take a percentage of your revenue as collateral if you take a bad credit loan to small businesses. Make sure the lender that you are applying to accepts the collateral you are offering. 

Sales Revenue of Your Business

Any investor checks the company’s sales report before investing, the sales revenue acts like a credit score, and the higher your sales revenue, the you.

How to Get Small Business Loans?

Since we have been discussing loans for small businesses for a bit now, let’s move on from the question of how to get a small business loan for a bit, hoping we have clarified that to the best of our abilities, and discuss the factors that matter in actually getting one. Each lender has a different set of criteria for getting loan approval, but here are some common requirements that are a must for every lender.

  1. Business and Credit Score

Based on your credit score lender usually sanctions the loan. Your credit score determines your creditworthiness. A credit score higher than 500 is the minimum limit. A good credit score can reduce interest rates as well. 

  1. Annual Revenue and Profit 

Any lender checks the company’s sales report before investing, the sales revenue acts like a credit score, and the higher your sales revenue gives easy approvals.

  1. Age of the Business

An old company gets easy approval for bad credit loans small businesses loan easier than a new company. The age requirement for these usually starts from 6 months. An old company is more reliable, and its revenues are typically more consistent than new businesses.

  1. Market Size of the Industry

Market size denotes the maximum extent a company can reach, in terms of revenue. Therefore, for an investor, it is really important to invest in a business that has a big market size, to get the desired ROI (return on investment) on it.

  1. Documents

For applying for any loans for small businesses, documents like Bank statements, Business registrations, permits, etc. 

How to Find Business Loans for Small Businesses?

There are three places to look for business loans when you wonder how to get a small business loan: banks, credit unions, and online lenders.

Traditional Banks

These institutions usually offer loans that are not flexible in terms of features, they are slow to process, and the only highlight of these types of loans are low-interest rates.  However, to qualify you do need to have a high credit score.

Online Lenders
Provides flexible loan terms, and the fund processes at a faster rate than traditional banks. They offer bad credit loans small businesses as well. These lenders may ask for collateral. However, the APR charge is quite high.

What are the Alternatives to Small Business Loans?

  1. Grants

Grants are there by the federal or local government. For providing financial assistance. They contain a specific amount of money for helping your business achieve success. Grants depend on the eco-friendliness of a business or women’s empowerment.

  1. Fintech Companies

These companies provide small loans for a short period. Make sure to check whether a fintech company can help your business. Usually, these companies provide AI-driven accounting, online transactions, etc.

  1. Peer-to-Peer Lending

There are some online platforms where a borrower can pitch his business idea to investors, who then will invest and provide the required funds. Make sure to convey the vision of the company and have consistent revenues annually.

FAQs

Q1. Are small business loans hard to get?

There are certain factors based on getting approval for a business loan like cash flow, annual revenue, etc. if your company is older than 1 year and has a consistent cash flow then you can easily get a small business loan.

Q2. Do banks give loans to small businesses?

Yes, banks usually offer loans that are not flexible in terms of features, they are slow to process, and the only highlight of these types of loans are low-interest rates. They are partially as. However, to qualify you do need to have a high credit score to qualify.

Q3. What kind of loan can I get for my small business?

There are 4 main types of loans that help small businesses. These loans vary based on the maximum loan amount, APR, loan term, etc. These are short-term loans, SBA loans, business credit cards, and equipment financing. 

Conclusion

If you own a small business and are interested in expanding it, small business loans may help you achieve your dream. You receive the required funds on the same day you apply and the documentation process is simple and smooth. You receive money without selling any equity. 

Various lenders that we mention, provide some of the best small business loans that help you and your business go far. Make sure to check the requirements to qualify for any loan. If your company is older than a year and has an annual revenue of $50,000, it will not be difficult for you to get approval.

About Post Author

William Jameson

As one of the members of our editorial team, William Jameson is responsible for driving the vision of what we want to communicate on our website about the latest financial services, loan offers, and credit card offers. With more than 10 years of experience in content creation and copywriting, William Jameson is an expert in his craft. He has a Bachelor’s degree in Communications from the University of California and has held various positions within journalistic outlets prior to joining our team. With his knack for concise yet informative pieces, He ensures that every article published in City Hall News contains valuable information that readers can take away with them.
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About the author

William Jameson

As one of the members of our editorial team, William Jameson is responsible for driving the vision of what we want to communicate on our website about the latest financial services, loan offers, and credit card offers. With more than 10 years of experience in content creation and copywriting, William Jameson is an expert in his craft. He has a Bachelor’s degree in Communications from the University of California and has held various positions within journalistic outlets prior to joining our team. With his knack for concise yet informative pieces, He ensures that every article published in City Hall News contains valuable information that readers can take away with them.

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