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Best Small Business Loans
We use Lendio's marketplace to help business owners find which alternative lender has the best loan option for their unique needs.
Data effective post date. At publishing time, loan amounts, rates, and requirements are current but are subject to change. Offers may not be available in all areas.
*Does not represent the typical rate for every borrower, and other fees may apply.
With all the financing options out there, trying to compare business loans can feel overwhelming. You can borrow from traditional lenders (banks or credit unions) to get the best deals, or you can borrow from online lenders for lower loan qualifications. You can choose from term loans, lines of credit, invoice financing, microloans, and more. It’s a lot.
We’ve taken all those financing options and narrowed them down to the best small-business loans out there. In this roundup, we’ll tell you what makes these lenders great and help you decide which is the best fit for your business.
Ready to find your funding?
Compare the best small-business loans of 2023
We use Lendio's marketplace to help business owners find which alternative lender has the best loan option for their unique needs.
Data effective post date. At publishing time, loan amounts, rates, and requirements are current but are subject to change. Offers may not be available in all areas.
*Does not represent the typical rate for every borrower, and other fees may apply.
How to choose the right small-business financing
Don’t think you’ll qualify for a small-business loan quite yet? Try a personal loan from Avant instead.
Unlike many personal lenders, Avant lets you use its personal loans for your business. And since it’s a personal lender, not a business lender, Avant doesn’t care about things like your business revenue and business age (as long as you meet other requirements, of course). That makes Avant easier to qualify for than many lenders on this list.
But Avant’s personal loans max out at well under $50,000 ($35,000), making them too small for many business uses. And while the starting APR isn’t that high, you can definitely find cheaper business loans. Overall, we do recommend using a business loan if you can, however, if you want to use a personal loan for your business, Avant is the best lender to do it with.
Lendio: Best overall for small business
Data effective post date. At publishing time, loan amounts, rates, and requirements are current but are subject to change. Offers may not be available in all areas.
Bottom line: Lendio offers the best loans for most small-business owners.
As a lending marketplace, Lendio partners with more than 75 lenders. Just fill out its 15-minute application, and within 72 hours, Lendio will get back to you with a list of loan offers. Pick your favorite option, finalize your application, and enjoy your new loan.
Lendio loan details
Data effective post date. At publishing time, loan amounts, rates, and requirements are current but are subject to change. Offers may not be available in all areas.
Lendio partners with over 75 lenders (including some on this list), which improves your odds—not to mention your efficiency. Those lenders offer everything from short-term business loans to merchant cash advances to equipment financing to real estate loans. (The table above shows just a small sampling of Lendio’s financing options.)
Given its many options and personalized loan matchmaking, Lendio should be a no-brainer for just about any business.
Avant: Best personal loan for business
Data effective post date. At publishing time, loan amounts, rates, and requirements are current but are subject to change. Offers may not be available in all areas.
Don’t think you’ll qualify for a small-business loan quite yet? Try a personal loan from Avant instead.
Unlike many personal lenders, Avant lets you use its personal loans for your business. And since it’s a personal lender, not a business lender, Avant doesn’t care about things like your business revenue and business age (as long as you meet other requirements, of course). That makes Avant easier to qualify for than many lenders on this list.
But Avant’s personal loans max out at well under $50,000, making them too small for many business uses. And while the starting APR isn’t that high, you can definitely find cheaper business loans. So overall, we do recommend using a business loan if you can.
But if you want to use a personal for your business, Avant is the best lender to do it with.
Backd: Best for flexible repayment
Data effective 10/29/23. At publishing time, loan amounts, rates, and requirements are current but are subject to change. Offers may not be available in all areas.
Backd offers lines of credit with flexible repayment terms that allow you to repay weekly in 6 months or 12 months. But unlike other lenders that offer lines of credit, Backd also offers working capital loans. Working capital makes it easy to bridge any cashflow issues you might have while you are committing to more long-term funding.
Backd makes it so easy to apply for funding. All you have to do is fill out an online application that takes less than five minutes to fill out. You will get a response within 24 hours. To secure funding for your business, Backd requires proof of ownership and bank verification. You will also have to present your most recent tax return and your year-to-date profit and loss and/or balance sheet for accounts receivable.
While Backd’s lines of credit aren’t the cheapest out there, its accessibility to businesses open for less than a year makes it a great option for businesses that can’t qualify for low-interest term loans.
Backd makes it so easy to apply for funding. It's just an online application that takes less than five minutes to fill out. You will get a response within 24 hours. To secure funding for your business, Backd requires proof of ownership and bank verification. You will also have to present your most recent tax return and your year-to-date profit and loss and/or balance sheet accounts receivable.
While Backd’s lines of credit aren’t the cheapest out there, its accessibility makes it a great option for businesses that can’t qualify for low-interest term loans.
OnDeck: Best for repeat borrowers
Data effective post date. At publishing time, loan amounts, rates, and requirements are current but are subject to change. Offers may not be available in all areas.
If you think you’ll need plenty of credit over the next few years, you may want to give OnDeck a look. OnDeck offers unique perks for repeat borrowers, making it a good deal for business owners who expect to seek more funding in the future. These benefits include reduced loan origination fees, lower interest rates and even waived interest on existing loans.
Keep in mind, though, that OnDeck is far from the cheapest loan option out there, even with those perks. It has a high starting APR (annual percentage rate) of 29.90%, so even if you’ve got a great credit score, you won’t get a low interest rate. But to be fair, plenty of other online lenders have pricey loans, too.
That means that OnDeck can still be a good deal for businesses that will have more credit needs in the future.
Bluevine: Best for fast funding
Data effective post date. At publishing time, loan amounts, rates, and requirements are current but are subject to change. Offers may not be available in all areas.
Data effective post date. At publishing time, loan amounts, rates, and requirements are current but are subject to change. Offers may not be available in all areas.
If you need funding right away ― like you can’t wait two days ― Bluevine is the lender you want. It offers same-day funding with its line of credit and next-day funding through invoice factoring. Put simply, it’s fast.
It all starts with an automated application process. You submit information about your business, and Bluevine can make a decision on your loan application nearly instantly or within a few hours. Then, if you opt for the line of credit, you can pay a small wire transfer fee to get your funds in just a few more hours. Otherwise, your funds should show up the next day via ACH transfer.
And to be clear, Bluevine has more going for it than just fast funding times. It offers two flexible kinds of working capital, lines of credit and invoice financing. And while it has stricter revenue requirements than other lenders on this list, Bluevine has relatively lax application requirements otherwise ― three months in business, $40,000 in monthly revenue and a 625 personal credit score can get you invoice factoring.
That means that whether you need fast funding or just good working capital, Bluevine can help.
SmartBiz: Best for SBA Loans
Data effective post date. At publishing time, loan amounts, rates, and requirements are current but are subject to change. Offers may not be available in all areas.
Data effective post date. At publishing time, loan amounts, rates, and requirements are current but are subject to change. Offers may not be available in all areas.
If you’re interested only in U.S. Small Business Administration loans, then give SmartBiz a try. It claims to simplify the SBA application process with its loan marketplace. Much like Lendio, SmartBiz delivers your one application to multiple lenders, matching you with your best options.
Unlike other lending marketplaces, SmartBiz deals exclusively in government-backed SBA loans, bank term loans, and lines of credit.
Upstart: Best personal loan lending experience
Data effective post date. At publishing time, loan amounts, rates, and requirements are current but are subject to change. Offers may not be available in all areas.
There’s a lot to like about Upstart, and we’re not the only ones to think so: Upstart has the best customer reviews of the lenders on this list.
Upstart has a 4.9 out of 5 on Trustpilot, giving it an excellent score. That’s not from a handful of customers, either ― 44,099 people have reviewed Upstart, with 97% of them giving it an excellent score.
What do these rave reviews say? Well, they praise a lot of the things you’d expect: fast approval and funding, helpful customer service, and fair pricing. We saw many reviews praising Upstart’s competitive rates and fees, too. In other words, people like pretty much everything about Upstart―even though it doesn’t have the lowest rates or the biggest loans.
If you’re looking for a tried-and-true lender for your personal loan that also happens to have a super low credit score requirement, then give Upstart a try. See our full review here.
FAQS about small-business loans
To figure out which loan is best for you and your business, you need to compare things like types of loans, loan amounts, interest rates, fees, and repayment terms. You’ll want to figure out both the kind of loan you need as well as the kinds of deals you can qualify for.
For example, if you’re making a big commercial real estate purchase, you’ll want a big real estate loan rather than a small line of credit—but the qualifications on the real estate loan might be stricter.
We’ve done a lot of the legwork for you with our rankings, but remember that lenders may not offer you the lowest rates or the largest loan amounts. So, before you accept a loan offer, make sure you understand the details of your offer. (This is one of the reasons we like Lendio: it lets you compare loan offers for your specific business.)
Want more help narrowing things down? We’ve got a guide to choosing a business loan.
For example, if you’re making a big commercial real estate purchase, you’ll want a big real estate loan rather than a small line of credit—but the qualifications on the real estate loan might be stricter.
We’ve done a lot of the legwork for you with our rankings, but remember that lenders may not offer you the lowest rates or the biggest loan amounts. So before you accept a loan offer, make sure you understand the details of your offer. (This is one of the reasons we like Lendio: it lets you compare loan offers for your specific business.)
Want more help narrowing things down? We’ve got a guide to choosing a business loan.
Direct lending means that you get your business loan directly from a financial institution, like banks or alternative lenders. With peer-to-peer lenders, on the other hand, your “lender” is really a platform that connects you with investors—and those are the people actually giving you money.
For more nitty-gritty details, you can take a look at our explanation of peer-to-peer lending.
Not exactly; the same anti-discrimination laws that keep lenders from denying someone because she’s a woman also keep companies from approving someone because she’s a woman. That being said, there are small-business lending companies that have programs to help women access loans or that have loans that might work well for women business owners.
You can find out more in our guide to business loans for women.
There used to be several loans specifically for veterans, but most of those programs have expired. But it’s not all bad news; there are still several grants, franchising opportunities, and business programs for veterans—all of which we round up in our article on financing for veteran-owned businesses.
Sure, you can. In fact, some personal loan companies (like Prosper) advertise their personal loans for business use. But is it a good idea? Maybe. A personal loan won’t build business credit, which could make it harder to get business financing in the future. But if you can’t qualify for a business loan yet, you might find that a personal loan is better than nothing.
We can’t tell you what’s right for your business; we trust you to figure it out, though. And if you need a little more guidance, we’ve got a guide to using personal loans for business.
We can’t tell you what’s right for your business; we trust you to figure it out, though. And if you need a little more guidance, we’ve got a guide to using personal loans for business.
You can find the easiest SBA loan to get approved for with SmartBiz loan marketplace.
It deals exclusively in government-backed Small Business Administration loans and delivers your one application to multiple lenders, matching you with your best options.
Methodology
We researched more than 60 online and traditional lenders to come up with our list of the best small-business loans. We scored lenders based on factors such as loan amounts, interest rates, borrower requirements, customer reviews, funding times, and more. These scores formed the basis of our rankings as well as our recommendations.
Disclaimer
At Business.org, our research is meant to offer general product and service recommendations. We don't guarantee that our suggestions will work best for each individual or business, so consider your unique needs when choosing products and services.