The Best Small Business Loans for September 2023
Chosen 535 times- Business loans from $5,000 - $500,000
- Repayment terms from 13 to 52 weeks
- Apply within minutes
- No prepayment penalties
- Small business loans of up to $5 million
- Fast payouts
- Access to SBA 7(a) loans, term loans, invoice factoring, and more
- Easy online application
Chosen 113 times- Business loans up to $500,000
- Approved and funded the same day
- Easy online application process
- Direct loans as well as access to lending partners
Chosen 157 times- Business loans up to $5 million
- Free business credit monitoring
- Access to data of multiple credit bureaus
- Provides identity protection
Chosen 618 times- Business loans of up to $5 million
- Get your capital within 24 hours
- Get connected with over 75 lenders
- Funding managers explain your loan options
Chosen 21 times
Chosen 101 times- Business loans up to $500k
- Repayment periods up to 36 months
- Application assessment within 24 hours
- Complete your application in just a few minutes
Chosen 231 times- Torro business funding from $5,000 - $575,000
- APRs up to 36.00%
- 100s of financing options
- Get the business capital you need
- Small business loans up to $250,000
- Repayment terms up to 18 months
Important
How to Compare Business Loans
Save by comparing with Financer.com first
Choose the loan amount your business needs
Filter the results based on your criteria and compare the best rates
Find the best match for your payday loan needs
Click Get Started to fill in your business loan application
As seen in
Best Rated Business Loans
How Do Business Loans Work?
Business loan options include much more than just term loans, whereby you get a lump sum of cash upfront and pay it back with interest over a period of time.
Whether this is a short-term loan lasting a few months, or a long-term loan for a few years, they are often attractive options for business owners due to their lower interest rates and lengthier repayment terms.
That being said, term loans often have penalties attached for earlier repayment, which is not as attractive for people who want to avoid long financial commitments. Always compare business loans to find the best deal.
To get the best deals you’ll need a good credit history and this is where many startup businesses might want to look for other small business loan options.
Types of Business Loans
Some of the best business loan options include:
Business Lines of Credit
A business line of credit (LOC) provides business owners with a revolving credit facility that can be used as needed. You repay what you owe, plus interest, which then becomes available to your business to borrow again.
💡 Tip: This is a great option if you need a constant flow of working capital without having to reapply for another loan.
SBA Loans
SBA loans are backed by the US Small Business Administration (SBA) and they come with longer terms, smaller down payments, and lower interest rates.
This may sound very attractive, but there are very specific requirements that you have to meet to qualify for an SBA loan.
Your business needs to fit the definition of a small business and had to be rejected for private funding, among others. Applying for an SBA loan can take some time, but it can be worthwhile.
There are different types of SBA loans and these include 7(a) loans, microloans, CSC/504 loans, and more. SBA 7(a) loans are the most popular for working capital of up to $5 million.
SBA microloans are loans for amounts up to $50,000 and they typically don’t require a down payment. What makes these loans tricky is that they are not guaranteed by the SBA and you’ll need to offer some collateral to secure funding.
Business lines of credit are a great option to handle short-term cash flow problems and they tend to come with lower interest rates than credit cards.
The drawback is that they may come with stricter credit history requirements and in some cases, they also require a personal guarantee, which leaves the business owner responsible for the debt.
Business Credit Cards
A business credit card is another form of revolving credit for businesses, as lenders let you use the funds you need, pay it back with interest (in most cases), and make it available to you again.
The benefit of a business credit card is that it is accepted almost everywhere and it gives you a quick solution to short-term cash flow.
Business credit cards are best used for smaller expenses that you can quickly repay. This will save you on interest and help you build a good credit history.
Equipment Financing
As it says, equipment financing gives you the finance you need to lease additional equipment for your business.
With this financing option, the term “equipment” is quite broad and it can cover anything from construction equipment to office furniture and software.
Because the equipment serves as collateral for the loan, even businesses with bad credit can qualify for equipment financing, although you’ll get much better interest rates with a good credit history.
Commercial Real Estate Loans
Commercial real estate loans allow businesses to buy real estate. There are different types of real estate loans but most of them come with long repayment terms (up to 30 years) and fixed interest rates.
When you take out a commercial real estate loan, the real estate itself will serve as collateral. That’s why aspects like the location of the property and its usability will affect the type of deal you will be offered.
Keep in mind that these loans have a long funding wait time and often have strict requirements.
Cash Flow Loans
Cash flow loans come in various types and they are designed to help out with short-term cash flow. An example is when you are waiting for a client to pay their invoice but you have bills that are due.
A cash flow loan can help you get quick cash to pay your bills while you wait for payments to come in.
Cash flow loans can come in the form of invoice financing, lines of credit, and merchant cash advances.
Microloans
A microloan is similar to a term loan but smaller. Microloans generally come in amounts of $50,000 or less ($13,000 is the average SBA microloan) and they are easier to obtain than large new business loans.
Microloans usually have higher interest rates and they offer a good opportunity to build your credit profile. The process is fairly quick and you can get a microloan approved in about two weeks.
Our Top Lenders for Small Business Loans
LoanBuilder
With LoanBuilder you can borrow up to $500,000 with APRs on business loans starting under 3%.
You have up to a year to make repayments and one of the benefits of LoanBuilder is that they don't require collateral to secure a business loan.
You can apply online within minutes and there are no prepayment penalties with LoanBuilder.
Fundera
Fundera offers business loans up to $5 million. They offer quite competitive terms with loan terms of up to six years. APRs are up to 36%.
They also have access to SBA 7(a) loans and have an easy online application. This is ideal for businesses and startups that need a higher loan limit with a fast payout.
Uplyft Capital
Uplyft Capital offers business loans up to $500k and loans are approved and funded the same day. Uplyft has an easy online application process that takes only a few minutes.
Borrowers get access to direct loans and access to a range of lending partners across the US. Repayment terms go up to 12 months.
Nav
Nav offers business loans up to $5 million and APRs are as low as 1%. Another great benefit of Nav is that borrowers get free business credit monitoring and access to data from multiple credit bureaus.
You can also get identity protection and you don't need collateral to get approved for a business loan.
Why Compare Business Loans At Financer.com?
Startup Business Loans with No Revenue
Businesses that haven't yet established a track record may turn to lenders that look a bit differently at credit scores. Rather than focusing on business credit, they take your personal credit into account.
This approach works well and it's good for small business owners with good personal credit. It means they can secure startup business loans with no revenue and get the funding they need to expand.
Some popular lenders that specialize in the best unsecured business loans include LoanBuilder, Nav, and Fundera.
👉 View our small business loan comparison below to see more rates, loan terms, and requirements from top lenders.
Best Unsecured Business Loans
Unsecured business loans can help existing and new businesses to get the funds they need to grow, without needing to offer any collateral.
Because no collateral is needed on unsecured business loans, some lenders require borrowers to sign a personal guarantee. Once the business loan is fully repaid, the personal guarantee is removed.
You can apply for unsecured business loans with banks and credit unions. However, some of the best unsecured business loans are available from online lenders.
How Do Business Loans Work?
Business loans are loans that are specifically intended for a business.
So, how do small business loans work? A small business loan is financing provided by a lender to a business and it is repaid (the principal and interest) in fixed monthly installments.
The main types of business loans include a business line of credit, business credit cards, SBA loans, and equipment financing. A business loan is similar to a personal loan but explicitly geared towards businesses. Lenders will offer different business options from start-up funds to expansion, to buying property.
An online business loan can also help to increase your working capital. Startup business loans are mainly from financial institutions such as banks, credit unions, online lenders, and the Small Business Administration (SBA).
To qualify for a small business loan, lenders may look at your personal and business credit scores, the business’s cash flow, time in business, debt load, and the industry your business is in.
A business loan can help to fund a one-time purchase for your business, buying new equipment, or covering an emergency expense. A business loan is similar to a personal loan but explicitly tuned for business use.
Lenders will offer different business options from start-up funds to expansion, to buying property. The main types of business loans are from financial institutes, such as:
- Banks
- SBA (Small Business Administration)
- Credit Unions
- Online Lenders
Business loans often come in installment loans, which are the same as personal loans. You borrow an agreed amount with a specific paid term and a set interest rate. The other alternative business loan is revolving credit. They are similar to a home equity line of credit (HELOC) but for businesses.
With revolving credit, you borrow a set amount but do not have to use it all. You are generally charged interest on the amount that you have used rather than the amount you have borrowed.
A business loan’s monthly payment and interest rate are fixed for a certain period, making them ideal for small businesses and startups. Some loans will have a floating interest rate, but most start up business loans tend to fix a rate so there are no nasty surprises in the initial years of the business.
Starting and running a business can be a difficult process, emotionally and financially. For the latter, an online business loan may help relieve that pressure.
Using this new capital wisely can be critical to a business’s success and it all starts with finding the right business funding.
How to Qualify for a Small Business Loan
The process of getting a small business loan can seem tedious and complicated, we get it. Lenders consider so many factors and they are not always transparent in their approval process.
That’s why we help you choose the best loan for your business.
To get started you need to determine the best business loan for your specific needs. You need to know why you need the funding and how you’ll use it so that you can justify your needs to the lender.
Here are some of the factors that lenders look for when assessing your application:
- Credit. Lenders can look at your personal and business credit scores.
- Collateral. Some lenders require borrowers to offer collateral before a loan can be issued.
- Cash flow. The stronger your cash flow is, the more likely you are to obtain funding.
- Time in business. Lenders tend to favor businesses that have been around for a few years.
- Debt load. If your business has too much debt lenders might not look at it favorably.
- Industry. Certain industries can get business loans easier than others.
Lenders use your credit history and score to determine how you will handle new credit. They will often look at your personal and business credit score as part of your application.
Business loan lenders look at your personal credit score in the same way as when you apply for a personal loan or want to buy a car.
If you have a low score, you may have limited options available in terms of business loan offers, and in general, the more your credit score increases, so do your options.
When lenders look at your cash flow, they want to know how you manage your money, whether you pay your bills on time, and what you spend your money on.
As a general rule, the longer you’ve been in business, the more likely you are to have good funding opportunities.
To build your business credit score you can start by making sure your business is a legal entity with an employer identification number (EIN) from the IRS. You should also have a business bank account.
Here are some of the requirements when you apply for a business loan:
- The business is registered and has a tax ID number
- In most cases a credit score of between 600 and 800
- Ability to offer collateral
- Steady cash flow
- Must show a profit or a three to five-year cash projection
- A plan laying out the money’s intended use
An online business loan can help you increase your working capital. This is especially helpful when you find it challenging to make ends meet.
There are various online lenders with less stringent application rules who are willing to partner with business owners.
What Influences Business Loan Rates
When getting a business loan, most owners are concerned about the interest rate. Interest rates are calculated as a percent of the principal – essentially what you pay the lender for issuing your company the loan.
The best business loan rates can vary for many reasons, but they all point back to the risk the lender takes by issuing the business loan.
Some factors that can affect the best online business loans rates are:
- Your business credit history
- Your credit history
- The type of business
- The length of time in business
- Business plan
- Business capital and cash flow
💡 Note: It’s in a lender’s best interest to connect you with a business loan that fits your needs, so compare lenders before agreeing to any terms.
Other Funding Options
If you don't qualify for a business loan or you don't want to take out a large loan, you can always opt for a personal loan or a business credit card. This is especially helpful when you're business is very small or if you're just starting out.
With a personal loan, lenders look at your credit score and income, not your business's. With a business credit card, you can get revolving credit which is ideal for expenses in the short term. Credit cards may come with the added benefit of rewards like travel points or cash back.
Either option could work but always compare the terms - including the APRs and late fees - before you apply.
Business Finance: Make a Smart Decision
It is easy to get excited at the thought of additional capital being injected into your business but use caution. Make sure you understand the terms of a business loan and don’t enter into any agreement without the following information:
- The frequency and flexibility of payments
- Interest-calculation methods
- Any penalties associated with defaulting
- The business loan rates and terms
- How to reach customer service
Talk to various lenders when shopping for a business loan. With caution and patience, you can make wise decisions. It’s also important to know how you will pay the loan back.
Always borrow the lowest amount that you need unless you can be approved for revolving credit. Startup business loans can be risky to lenders as many businesses fail in their first few years.
Once you find a business loan with the best business loan rates and payment terms you’re comfortable with, it can help take your business to the next level. Use Financer.com to find the best business loans for your needs.
What Customers Say About Us
4.60 based on 322 reviews
from Reviews.io
Comparing Loans with Financer.com
Financer.com helps you compare the best business loans and get the lowest loan rates from leading U.S. lenders and banks.
Our loan comparisons are fast and easy, and completely free. Best of all, you can pre-qualify without hurting your credit score.
At Financer.com we are always improving our comparisons, but are confident in what we can bring to market, and we know you will be as well.
Business Loans - FAQs
What is considered a business loan?
A business loan is funding that is specifically intended for business purposes. There are different types of business loans with different requirements for each.
Is it difficult to get a business loan?
In some cases, it can be difficult to get approved for a business loan, especially if you have bad credit, or if your business already has a lot of debt.
Can I get a business loan with no money?
For small businesses and startups that don’t meet the requirements for SBA loans or are unable to afford the downpayment, there are SBA microloans available.
What credit score do I need for a business loan?
Credit score requirements will vary according to the lender. Banks usually require a credit score of around 700 and higher for a small business loan but some online lenders may grant funding to borrowers with credit scores in the low-600s.
Read More About Loans
Cash-Out Refinance vs HELOC
Getting access to your home's equity could be a cost-effective method to achieve your dreams, whether you need money to pay off debt, fund a
November 3, 2022 9 min read
Cash App Borrow: How to Borrow from Cash App
When you need fast cash you can benefit from an app that allows you to borrow money in seconds. It's ideal for emergency expenses or ...
March 27, 2023 7 min read
What Is a Reverse Mortgage?
A reverse mortgage is a type of home loan that allows the homeowner to get a loan against the equity in their home. Reverse mortgages allow ...
May 15, 2023 19 min read
