Best Business Loans

114 Companies

869 Real Customer Reviews

4.4
Average User Rating

Why I can trust BestCompany.com
  • Max Loan: $5 Million
  • Requires Business Collateral
  • Prepayment Penalties Apply

M&T Bank

  • Max Loan: $5 Million
  • Requires Business Collateral
  • Prepayment Penalties Apply
  • Max Loan: $100k
  • Must Have $5k+ in Monthly Revenue
  • Must Have 3+ Months in Business
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BlueVine

  • Max Loan: $100k
  • Must Have $5k+ in Monthly Revenue
  • Must Have 3+ Months in Business
  • Max Loan: $300k
  • Must Have $4k+ in Monthly Revenue
  • Must Have 12+ Months in Business
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Lending Club

  • Max Loan: $300k
  • Must Have $4k+ in Monthly Revenue
  • Must Have 12+ Months in Business
  • Max Loan: $2m
  • Lowest APR: Undisclosed
  • Time to Funding: Undisclosed

First Financial

  • Max Loan: $2m
  • Lowest APR: Undisclosed
  • Time to Funding: Undisclosed
  • Max Loan: $250k
  • Must Have $10k+ in Monthly Revenue
  • Must Have 6+ Months in Business and 500+ Credit Score
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Credibly

  • Max Loan: $250k
  • Must Have $10k+ in Monthly Revenue
  • Must Have 6+ Months in Business and 500+ Credit Score
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  • Max Loan Amount of $1M
  • Requires Personal Collateral
  • Must Have A Minimum of $60,00K/Year In Revenue

Shield Funding

  • Max Loan Amount of $1M
  • Requires Personal Collateral
  • Must Have A Minimum of $60,00K/Year In Revenue
  • Max Loan: $500k
  • No Monthly Revenue Requirement
  • Must Have 2+ Years in Business

Funding Circle

  • Max Loan: $500k
  • No Monthly Revenue Requirement
  • Must Have 2+ Years in Business
  • Max Loan: $1 Million
  • Must Have $17k+ in Monthly Revenue
  • Must Have 2+ Years in Business

Bond Street

  • Max Loan: $1 Million
  • Must Have $17k+ in Monthly Revenue
  • Must Have 2+ Years in Business
  • Max Loan: $150k
  • Lowest APR: 9%
  • Time to Funding: 10-20 days

Synergistic Investments

  • Max Loan: $150k
  • Lowest APR: 9%
  • Time to Funding: 10-20 days
  • Minimum Credit Score: 600
  • Peer-to-Peer Lending
  • Time to Funding: 30 Days

Able Lending

  • Minimum Credit Score: 600
  • Peer-to-Peer Lending
  • Time to Funding: 30 Days

Important Things to Know Before Choosing a Business Loan Company

Do you dream of becoming your own boss? Or perhaps you’re already your own boss and want to expand your company. Those daring enough to take the plunge and apply for a business loan will find it can sometimes be a complicated process. To find a loan that fits your company, consider all the factors you’ll encounter when applying. Here are a few helpful things for you to know when looking for a business loan company:

Understand various loan types and lenders

Finding the right loan for your business is a daunting task. There are a plethora of business loans, each with unique aspects and requirements. Keep in mind all the factors that could affect your loan such as personal and business credit history, sufficient collateral, profitability, and cash flow. However, don’t let this discourage you. Don’t be afraid to ask questions and look around until you find the right lender and loan. Make sure to ask your lender what loans they offer and which one will help your business.The most important thing is to find a loan that will best benefit you and your company’s needs. 

Prepare to answer questions and provide proof

Lenders will want to know everything about your business. Take the time to tell them about your business, clients, and industry. You can also share how you plan to spend the loan money and where you want to be in the next 5-10 years. Additionally, be sure to bring any documents that can speak to the credibility of your business, including business and personal credit histories, business plans, proof of collateral, bank statements, tax returns, and any other legal paperwork.  

Be patient

You filled out your business loan application a few months ago and are waiting to hear back about the decision. However, the lender calls to inform you that your business loan was rejected. This news would bring anyone down and feel discouraged. In fact, this is the case for many people attempting to get a business loan. Some people never even figure out why their application was rejected. Before hanging up the phone ask what it was that influenced their decision. Sometimes it can be that your business involves to much risk or there wasn’t a clear business plan. Most of the time it is something that can be changed and fixed. Before you submit another application make sure to revisit all aspects of your business proposal to make sure they meet the requirements. 

Explore all of your options

Traditional bank loans are probably the most common when starting to apply for loans. However, just because they are the most common doesn’t mean that it is the best fit for you and your company. Finding the right business loan company takes time and patience, so be prepared to shop around. Focus on companies that are best suited to your current needs. 

Know what lenders will look for

Be aware of the following items that a lender will look for in your business loan application:

Personal credit score: Your personal credit score plays a key role in whether a lender decides to grant you a business loan. Lenders want to try to guarantee that you’ll make your monthly payments and pay back the entire loan. A personal credit score allows lenders to make a judgement call about whether they’ll approve the loan. Generally, most lenders prefer a credit score of 700+, but there are exceptions.

Amount of time in the business industry: Lenders will consider how long your company has been operating. Most lenders require that your company be in business for 1-2 years before they’ll consider you for a loan. 

Collateral: Before giving you the loan, lenders will want to know that if something goes wrong they’ll have something tangible to sell. Collateral can be a car, real estate, work equipment, cash, accounts receivable, or other assets. Lenders tend to undervalue collateral as it lessens the risk they have to take. Undervaluing the collateral requires a borrower to provide more assets to secure the loan.  

Get familiar with common business loan terms

  • Accounts Payable: Can also be referred to as “current liability.” Accounts payable is the amounts owed to a certain vendor or supplier.
  • Accounts Receivable: The money that is owed to your company. This is based on the services or goods provided to a customer.
  • APR: Stands for the Annual Percentage Rate. The APR not only takes interest into account but any other fees to measure how much your business loan will cost you each year.
  • Blanket Lien: Agreeing to a blanket lien gives a lender the right to seize you or your business’s assets (in any form) if you fail to pay off the debt.
  • Collateral: Collateral is a tangible or valuable to you or your business. If you fail to make the loan payments the property that you signed as collateral will be given up to your lender.
  • Consolidation: Paying off multiple debts with the funds from one loan.
  • Entity Type: Every business must declare an entity type. This ensures that businesses operate within the correct laws.
  • Fixed Interest Rate: The interest rate will not change during the entire lifetime of the loan.
  • Insolvency: A state of not being able to repay your debts.
  • Lien: Using something you own as a guarantee to repay back your loan. If your lender takes out a lien on your car and you don’t pay back your loan, the lender has the right to take your car.
  • Line of Credit: Functions like a credit card. You will be given a extended line of credit where you’ll be able to spend up to that credit limit. Then you will have to pay off whatever you spent.
  • Long-Term: Any debt that will be paid back in more than one year.
  • Principal: Refers to the original size of your loan.
  • Refinancing: Paying off your debt with a new loan. This is done to save on interest.
  • SBA: Small Business Administration, a government agency to help smaller businesses with secure financing.
  • Short-Term: Typically refers to debt paid off within one year. However, there are a few lenders who allow short-term repayment intervals of up to two years.
  • Subprime Borrower: A borrower who has a credit rating below normal. Usually, subprime borrowers are charged a higher interest rate.
  • Unsecured: A loan that doesn’t have any collateral. This type of loan can be tricky to qualify for because the lender doesn’t have any way to recover their losses if you don’t pay back the loan.
  • Variable Interest Rate: Interest rate that will vary as the market changes over the entire lifetime of the loan.
  • Working Capital: Current assets minus current liabilities.

What types of business loans are there?

Depending on the company and industry you’re in, there are various options for business loans. Each loan lender will specialize in different kinds of loans, and not all of them will be right for your company. Some loans are customized for startup companies, seasonal companies, companies that need equipment, companies that want to increase their working capital and more. 

Why should I get a business loan?

While loans can be risky, they can also benefit your company. You can get a business loan for a variety of reasons: 

  • Hiring more employees or hosting more customers — Some businesses are ready to expand and this requires a new building site or multiple locations. Lenders see this as a positive sign as it usually means business is going well and are more likely to approve your loan.
  • Purchasing new equipment — Taking out a loan to purchase necessary equipment will improve the quality and service of your company.
  • Boosting inventory — It can be challenging to purchase inventory before you’ve made any profit. To compensate, companies will take out a small loan to stock their shelves and pay it off using the profits earned from sales. 

How can I increase my credit score and qualify for larger loans?

Many business owners choose to take out smaller, short-term loans. Consistently making on-time payments will build your business’s credit score and credibility, making it more likely for you to qualify for larger loans in the future. 

How long does it take to get a business loan?

This can depend on a number of factors, but don’t expect to walk out of your lender's office with a handful of money on day one. Assuming all documents are correct and present, it can still take weeks or months for your business loan to be accepted. Research each lender’s application and approval process before taking out the loan, just in case it takes longer than you thought. 

What’s the difference between a bad business credit score and a thin business credit score?

A business credit score is based on various factors, including your payment history, bankruptcies, liens, etc. A bad credit score shows that you have failed to make your scheduled payments, otherwise known as payment defaults. Whereas, a thin credit score means you don’t have a sufficient amount of business credit history, making it hard for lenders to determine creditworthiness. In both cases, it can negatively affect whether you get the loan. 

How can I fix my bad/thin business credit score?

Fixing your credit score will take some time, but there are several steps you can take. Be aware that it could be a while before you see any drastic results. 

First, pay all your bills on time or, even better, pay them early. A late payment will lower your score, and it only gets worse the longer you leave it. Second, be on good terms with your vendors. Your suppliers can make a big difference in your credit score. Some vendors will report your on-time payments or early payments to credit bureaus, which will raise your credit score. Another tactic to fix your credit score is to open more than one credit line. Or, you may want to try getting a secured credit card. A secured credit card allows you to set up a security deposit that acts as collateral. If you put down a $500 security deposit, your card limit is $500. Making regular, consistent payments to this card will positively affect your credit report. Last, keep your personal finances and business finances separate. A simple way to do this is to open two separate accounts, one for business and one for personal. 

What is the best business loan company for me?

First, identify what your company needs. If your company is looking to expand, don’t apply to a loan company that focuses on equipment financing. The best thing you can do for yourself and your company is to take the time to find the right lender. Reading reviews, calling and asking questions, and reaching out to those who started their own businesses will help you find the best fit. Each business loan company will have different requirements and qualifications so taking the time to conduct your own research is key to finding the right business loan company.

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