Find the Best Small Business Loans for You
Small business owners no longer have to rely on traditional banks for finding small business loans. From lines of credit to invoice financing, online lenders offer a variety of financing solutions at competitive interest rates. Here are the most common types of business loans. Which is the best for your business’s needs?
SBA Loan
SBA loans are government-guaranteed term loans. The guarantee allows SBA lenders to offer low-interest rate loans to business owners who might not qualify for a bank loan.
Maximum Loan Amount
$5K – $5M
Term
5-25 years
Interest Rates
Starting at 7.75%
Speed
As fast as 2 weeks
Business Term Loan
Just like with a traditional bank loan, with a traditional-term business loan, you are lent a lump sum amount upfront, which you pay back (along with fees) over a set period of time.
Maximum Loan Amount
$25K – $500K
Term
1 – 5 years
Interest Rates
7 – 30%
Speed
As fast as 2 days
Business Line of Credit
With a business line of credit, you can borrow up to a maximum credit limit and only pay interest on the amount of capital that you borrow from your business line of credit.
Maximum Loan Amount
$10K to over $1M
Term
6 months to 5 years
Interest Rates
7% – 25%
Speed
As fast as 1 day
Invoice Financing
Invoice financing lets you sell invoices to a lender, who fronts you a portion of the invoice amount. The remaining percent (usually 20%) is held until the invoice is paid.
Maximum Advance Amount
Up to 100% of invoice value
Term
Until customer pays the invoice
Factor Fee
8 – 30%
Speed
As little as 1 day
Startup Business Loan
Startup loans offer newer businesses capital to grow. Business credit cards, lines of credit, and equipment loans are great startup loans if you have strong personal credit.
Maximum Loan Amount
$150K
Term
6 months to 4 years
Interest Rates
7.9 – 19.9%
Speed
As fast as 2 weeks
Equipment Financing
With equipment financing, the lender will front you cash to help purchase the equipment outright. You then pay back the total amount lent, plus fees, within set period.
Maximum Loan Amount
Up to 100% of equipment value
Term
Expected life of equipment
Interest Rates
8 – 30%
Speed
As fast as 2 days
Short-Term Business Loan
With a short-term small business loan, you are lent a set amount of capital upfront, which you quickly pay back (along with fees) over a short period of time.
Maximum Loan Amount
$2.5K – $250K
Term
3 to 18 months
Interest Rates
Starting at 10%
Speed
As fast as 1 day
Merchant Cash Advance
With merchant cash advances, a financing company fronts you a lump sum of capital, which you repay (plus their fee) with a set percentage of your daily credit card sales.
Maximum Loan Amount
$2.5K – $250K
Term
Paid daily via your merchant account
Factor Fee
1.14 – 1.18
Time To Funding
As little as 2 days
Personal Loan for Business
Personal loans can actually be helpful for newer businesses that don’t have any financial history. Plus, personal loans can have lower rates than business loans.
Maximum Loan Amount
$35K
Term
3 to 5 years
Interest Rates
5.99 – 36% APR
Speed
As fast as 1 day