Personal and business credit, income, and your specific financial needs all help determine what the best solution for you is. We are here to help, whether you need new equipment, working capital, lines of credit, or anything else, we got you covered with easy-to-understand recommendations.
Browse the different lenders and read our reviews to learn more.
Recommended Small Business Loan Lenders in 2021
Best For Young Businesses: Reliant Funding
Reliant Funding lives up to their name with loan times of under 24 hours. Their small business loans are available to businesses with as little as 6 months’ experience. They also offer a wider range of business loan products, including:
- Small business term loans
- Merchant cash advances
- Equipment financing
These loan products are meant for short-term loans with terms of up to only 15 months. They are also open to lending to many borrowers with short credit histories or bad credit. The loan application process is fairly fast and very simple. If you’re looking for loans that don’t require collateral, they have many unsecured small business loan options that might suit your needs
Best For Large Loans With Good Credit: BlueVine
BlueVine offers a wide range of loan products to small businesses across the US. Though they have a minimum credit score requirement of 690, they provide fast loans of up to $5 million to businesses with at least 2 years in business. They’re also relatively flexible and offer standard term loans, lines of credit, and invoice factoring.
Like all the best business lenders, BlueVine is transparent about all its costs and fees. There are no origination fees, prepayment penalties, or termination fees. While they give out large loans, they still maintain a straightforward application process.
Best For Fast Cash: Kabbage
Kabbage is well-known for its speed. The company serves a wide range of businesses, including those with poor credit. Their minimum qualifications are relatively lax, and they specialize in fast lines of credit with low credit limits. They provide lines of credit for anywhere between $2,000 and $250,000 depending on customer needs and qualifications. Interestingly, they also charge a monthly fee instead of interest for their business loans.
Businesses sometimes face sudden threats to their working capital. It’s not always possible to wait for a lengthy loan application process. That seems to be the logic behind Kabbage’s fast and largely automated qualification process that often takes just a few minutes.
What to Consider When Choosing a Small Business Loan Service?
Check out the Lender Better Business Bureau Rating
The Better Business Bureau (BBB) provides professional, unbiased reviews of businesses. They focus on each business’s transparency rather than their overall quality. So, they provide useful insights into whether business lenders are honest about their offers and how they respond to customer concerns and complaints.
If a business lender fails to meet its obligations, the BBB also offers a platform for business owners to lodge complaints. You can go to a lender’s BBB page to see how the BBB rates them and you can view the correspondence between customers and lenders. We believe that most lenders get a few complaints from time to time, but good lenders make a point of honestly addressing these concerns.
Find out How Flexible the Lender is
Business lenders can vary greatly in their flexibility. That’s why it’s useful to look into their contracts as well as customer reviews.
Some lenders set very strict rules and expect you to follow them thoroughly. Your experience with them will depend, amongst others, on these factors. For example, many lenders insist that you pay them back regularly for the entire loan term, and they will even sometimes charge an early repayment penalty if you want to pay the loan back early. If you don’t want to be surprised by factors like that, you can do some research into how flexible each business lender is.
Do Background Research on the Company
Broad background research can start with the two factors listed above: the BBB and flexibility. But each business lender has its own history, leadership, and reputation.
Background research can help you guess what your experience with a particular lender will be like. Factors such as their leadership and past media coverage will provide hints that enable you to make a more educated choice. Some business lenders are very obscure and have a poor history including lawsuits and extensive complaints. However, other lenders are well-known for honesty and innovation, and some background and media research will reveal that about them.
A business lender can easily appear reasonable. Their rates can even look great, but until you compare them to other options, you can’t know for sure.
You can compare lenders on Lendstart quickly and conveniently. We have reviews on many different lenders, where you can compare factors such as:
- Minimum borrower requirements
- Customer service
- Much more
Knowing which lender offers the right products for you requires some research. Browse Our business loan reviews to start comparing lenders.
Which Lender Offers Exceptional Customer Service
Sometimes, the business lending process can be difficult or confusing. That’s why customer service is a critical aspect of lender-business relationships.
When a lender offers exceptional customer service, every part of the process becomes much easier. Most importantly, when there’s an issue you need to discuss with them, their customer service becomes the most important factor in doing business with them. It’s never a bad idea to conduct additional research into a business lender’s customer service.
Most Important Requirements for Small Business Loans
If you’re new to shopping around for business loans, you should be aware of the qualifications that lenders use. Business lenders look at several factors to determine how safe or risky it is to lend you money. These are the most important factors for them.
Your credit score is used as the main metric of how risky it is to lend you money. Business lenders normally state a minimum credit score for potential applicants. The minimum score can vary greatly by the lender.
The higher your credit score is, the better. If your credit score greatly exceeds the minimum score set by the lender, you can normally get better interest rates.
Lenders use your total annual revenue as another indicator of how safe it is to lend you money. In most cases, it’s the main indicator of your business’s performance, and thus of your ability to pay back a loan. That’s why many business lenders also set a minimum annual revenue requirement to be considered. The exact amount normally starts at a minimum of $50,000 but will vary depending on the lender, the loan type, and the loan amount.
Time In Business
In some cases, business lenders are more comfortable lending money to businesses with more experience. A young business is viewed as riskier, as the business is normally less established in its market. So, lenders will normally set a minimum time in the business requirement, which typically varies from 6 to 24 months. Accordingly, in some cases, the more time your business has been operating, the more at ease lenders will feel about working with you.
Most business loans require borrowers to provide collateral. Collateral isn’t always required, but you can expect most of the loans you find to have collateral requirements. Providing collateral for a loan makes the loan less risky for the lender, so most will have a collateral requirement. Some use this as a valuable asset such as inventory, equipment, or real estate.
Business Loan Benefits
Business loans can offer a few benefits for business owners.
Accessible and Convenient
You can shop around and discuss your needs with different business lenders to get the most accessible and convenient funding possible for you. Lenders normally offer different repayment options, and you can opt for the options that best suit you.
Lenders are often willing to work out a repayment plan that is compatible with your business’s cash flow. That way they can lend you money in a way that makes it easier for you to repay them without difficulty.
Business lenders offer a wide variety of loan products. As a business borrower, you have a lot of choices when it comes to loan size and repayment terms. You can also opt for a business line of credit if you need additional flexibility. On top of that, there are many specific loan types tailored to different business needs.
You have a lot of flexibility in terms of financing various short or long-term needs. For example, some collateralize an equipment loan with the purchased equipment or seek out loans that don’t require collateral.
No Collateral Required
You don’t necessarily need to submit collateral to access business loans. Generally, it’s easier to find a no-collateral business loan when you have higher borrower qualifications. In some cases, collateral isn’t an issue.
You can browse lenders on Lendstart to see which business lenders don’t require collateral.
This includes loans such as working capital loans meant to fill short-term financial gaps. Many businesses that face seasonal revenue fluctuations can exclusively shop for short-term loan options. Some may use these loans to help finance small business expansions or simply sustain cash flow. Some business loans come with terms as low as 3 months.
Reasonable Interest Rates
Business lenders of all institutional types can offer reasonable interest rates. Typically, stronger borrower qualifications enable businesses to access more competitive rates. If you aren’t happy with the rates one lender offers, you can often find several other lenders who will beat those rates.
When shopping for business loans, you can refer to the listed APR to compare interest rates and other costs. Many business lenders also don’t charge hidden fees while charging competitive and transparent rates. Access to educational resources online empowers business owners to make wiser choices and find reasonable interest rates.
Small business loans are widely available from many different lenders. This can make finding the best business loan for your business appears more difficult. However, it also means that borrowers have more choices and can find competitive business loans.
Finding the best business loans for your unique situation usually requires some research. However, taking the time to find the best small business loan can save you money and enable you to grow your business or keep it operational when your cash flow slows down.
Comparing the best business lenders for the loan type you are looking for is often recommended.