Top Small Business Lenders You Should Know Right Now


It is usual for your small business to need assistance with financing. You might need the funds to deal with an emergency or as a way to help give your company a boost. Your instinct will be to go down to your local bank and apply for a loan from them. However, brick and mortar banks do not generally offer loans for the small amount you may require. It costs a bank the same amount to issue a more substantial amount as it does to loan a small amount, but they make much less on interest. There are better, more flexible options for you as a small business owner. This is where finding the top small business lenders can become crucial to your success.

The top small business lenders are those that offer loans in small amounts with an agreeable interest rate as well as larger loans when necessary. These loans are issued with pleasing interest rates to ensure your business can still grow while paying the money back. 

Such lenders are typically found online and give you quick access to the cash you need. The online space doesn’t have to be the only place for you to secure a small business loan. Some of the top lenders do consist of larger banks, credit unions, and similar establishments. Each lender comes with different eligibility and loan terms, so the best lender for you may not be the same for another business. The list below will give you some of the best options available on the current market. 

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Why Seek Out a Small Business Lender

Businesses often need some help with finances, but the reasons can be different for each borrower. It is best to work out your budget to assess the best way to use the loaned money. Some ideas for you to consider approaching a small business lender can include:

To Expand Your Operations

If you have an established business, you may be looking to take your business to the next level. You can do this by purchasing larger business premises and expanding your operating area; a small business lender can help you do this. Receiving a small business loan from a lender based on this premise is relatively easy and straightforward. Lenders assume that a company looking to expand is already successful and holds a positive cash flow hence the need to grow and gain more success in the future. If you were primarily looking for real estate, then you can expect a loan to come in the form of a mortgage. Loan terms can range from 25 to 30 years just as a mortgage would. Your newly purchased business premises will serve as collateral on the loan for real estate, again, the same as a mortgage would for a house. 

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For Keeping Stock

Depending on your product, you may need to keep physical stock. If your product is seasonal, then with a specific approaching period, you may have a higher demand than you can keep up with. A small business loan from a lender can help you keep stocked up and meet those demands. There is nothing worse than losing out on profit because you have nothing to sell. A loan for purchasing inventory is usually taken out on the basis that it will be paid back in a relatively short time. Your business will be expected to pay off this short-term loan with the profit you have made from your newly sold stock.

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To Keep the Business Running

The money you use to keep your company running on a day-to-day basis is called working capital. As a small business, you might need a helping hand with some additional working capital. Small business lenders can help with this on a short-term basis. That cash injection can help get your business off the ground. As you grow your company, you can pay this money back, although you should expect higher interest rates. Rates are higher due to the risk that the bank is taking by funding your venture.  

For Specialized Equipment

Depending on your business venture, you may need specialized equipment. To acquire this equipment, you can either buy it outright or lease it. The way to decide if purchasing the equipment is the right decision for you means working out the positives versus the negatives. You should assess the amount of profit a piece of equipment can bring you against the cost of the equipment, along with its operating costs. As a business owner, owning the equipment outright does have its benefits. The key benefit is that the equipment, as mentioned above, is yours.

You can sell or scrap the equipment once it has served its purpose and profit, instead of returning it to the leaser. If you do not have the upfront funds for the required equipment, then you should approach a small business lender. Equipment financing usually comes in the form of an intermediate loan. Terms for such loans are generally between 10 to15 years.

What Type of Loan Should I Ask For?

Your reason for seeking out a lender will help you decide the type of small business loan you should seek out. On the other hand, the type of loan you require will help you find the lender best suited to you. No matter the type of loan you opt for, your aim should be low-interest rates with a repayment term that fits your income. Examples of the kinds of small business loans you can seek out will include:

Term Loan

A business term loan offers a lump sum of cash to be paid back with monthly payments to the lender in a fixed period. The term loan is one of the most popular ways of seeking financial aid for your business. A small business loan of this type will provide you with an amount of capital that you will pay back over a set period. You can use this type of loan to secure working capital to keep your business running or for you to amplify the growth of your business. You may be expected to provide collateral against this loan. Collateral can come in the form of company assets such as real estate or equipment. 

A term loan comes in both long-term and short-term business loan variants. Having this flexibility, you can set terms that are suited to the amount of interest your small business can cover. The selection of terms also makes this loan suitable for mid-sized companies as well as small businesses. Term loans do require a good credit score, and a lender will be hesitant or outright against lending to a freshly started business. 

SBA Loans

The Small Business Administration or SBA does not offer these loans as the name implies but guarantees them. The guarantee is a way for lenders to know that if you, the business owner, fail on making repayments for the loan, then the SBA will take over the obligation. You can seek this form of long-term loan out from both banks and online lenders; however, it is not easy to acquire. The application process can take a long time, and the eligibility requirements are challenging to meet.

You can use an SBA loan for a multitude of reasons though your reason will decide your payment terms. The loan terms can start from seven years for a loan that will go towards working capital. Twenty-five years can be expected for real estate with ten years for financing equipment. SBA loans come with some of the best interest rates available while offering up to $5 million. An SBA loan is excellent for those who need large amounts of funding but not instantly. Due to the lengthy application process, it can take a while for the money to come through.

Business Lines of Credit

A business line of credit secures you a set amount of money known as a credit limit that you can borrow from at your convenience. You will only pay interest back on the funding you take from this line of credit. A line of credit is a flexible form of financing though it may come with additional fees you should consider. A line of credit works similar to a credit card, so for that reason, you should expect maintenance and withdrawal fees. Having a line of credit can help with emergencies or a lack of cash flow.

These are not ideal situations, but a line of credit can also help with working capital and inventory. You should expect a higher interest rate as this is a short-term loan. As with most loans, a higher credit score will help you secure a better interest rate. To obtain a business line of credit, you need to prove you can pay back the borrowed amount. Proving your reliability is done by holding an excellent personal credit score while also having a running company for a set number of years. 

Business Credit Card

Similarly, to a line of credit, there are also specific credit cards designed for businesses. A business credit card offers you a line of credit for you to use as you see fit. The best use for such a card would be ongoing expenses such as stock. The limited credit limit can limit what you can use the funds for. There is no collateral needed with a credit card, but there are high fees and a variable interest rate to consider when choosing a card issuer. Some cards can offer cash back, so if you are using the card regularly, you can alleviate some of the fees.

Top Small Business Lenders

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Equipment Loan

As the name suggests, equipment loans are for funding your equipment needs. The terms of this loan are set to match the expected lifetime of your equipment. The interest rate for you to pay back will depend on the value of the equipment. The financial strength of your company also plays a part. The equipment also serves as collateral against the loan. 

A down payment may be required from you for you to gain access to this type of loan. One thing to consider is that the equipment you buy may lose its value before you pay back the loan. If you feel this will be the case, then consider leasing the equipment or using a different option of funding altogether.

Invoice Factoring and Financing

Invoice factoring is a way to raise funds quickly. You can sell your outstanding invoices to a factoring company. The factoring company will take on the responsibility of collecting those invoices and will keep the amount. Factoring means you lose out on money you could have had in return for fewer funds, but you receive them faster. The eligibility terms are minimal for this type of financial aid. 

Invoice financing is similar to factoring, but instead of selling your invoice for cash, you are using them as collateral against a loan. Financing can again give you access to fast cash, but the responsibility of collecting the invoice amount still falls to you. 

Merchant Cash Advance

A merchant cash advance offers a lump sum of money to help with your business finances. So far, this sounds like a standard loan, but you don’t make monthly payments as you would on a term loan, for example. Instead, the lender will take payment for the loan by withholding a percentage of your daily credit and debit card sales. Alternatively, they can take the money from your business’ checking account directly on a weekly or monthly basis. The term of the loan is not fixed and is decided by how much you can make each day.

The case is the same for the interest you pay on the amount. There is no fixed APR, but a percentage of the actual loan makes up the interest you pay. When you look at this number as an interest rate, it usually starts at about 15% but can be much more abundant, even leading into triple digits. Approval for a merchant cash advance can be fast, and max loan amounts can reach up to $250,000. A merchant cash advance can be significant if your business financing options are limited. However, you do need consistent credit card sales to pay off this loan.

Personal Loan

A personal loan can help with funding for many things, and improving your business can be one of them. A personal loan is best suited for a new company that is yet to solidify a strong financial presence. The ease of access comes from the fact that the loan is issued based on your personal credit score. The operating duration, as well as the profit from your business, do not factor into the lender’s decision. A personal loan can come with a high-interest rate while offering a low maximum lending amount of up to $50,000. A personal loan can hurt your personal credit score if you fail to make the repayments. For this reason, a good debt management strategy is vital for making a personal loan work for you. 

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As an alternative to a personal loan, you can seek out a microloan. Again, you can expect a maximum lending amount of $50,000. Unlike a personal loan, the cost of a microloan is minimal. The strict eligibility requirements set by the business loan lender ensure you are not a risky lender. A microloan is usually available to startup companies and other newer businesses. There is also an allowance for a business that operates out of a disadvantaged community. Microloans come from non-profit organizations, so they are for the betterment of the community. 

Best Lenders by Loan Type

It takes a lot to be the best at something, and small-business lending is no different. The best lenders should offer low-interest rates with flexible terms. The eligibility requirements should be firm but fair. If there were no requirements, then anyone could apply and then find themselves in a situation they cannot fix. On the other hand, a small business loan should be accessible to those who can make use of those funds. There is a delicate balance between the two. 

You also need to look for a company that has a good reputation and can be trusted. You wouldn’t borrow money from a back-street lender, and you should take the same approach when seeking out a loan online. The top small business lenders for each type of financing solution are:

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Term Loans

Funding Circle – For Those Who Want an Excellent All-Around Option

Funding Circle is an online lender, so it offers some of the most competitive interest rates along with a broad selection of terms for your loan. The loan amounts come in amounts between $25,000 and $500,000 with terms between six months and five years. These flexible terms are excellent for small-business owners with varying needs for finances. The APR of your loan will depend on your creditworthiness with the best applicants able to secure a rate as low as 4.99%.

There is, however, an origination fee to consider, which starts at 3.49% and can go up to 6.99%. For a loan with Funding Circle, you will need a personal credit score of 620 or higher, with your business being at least two years old. The actual application for the loan can take 10 minutes with your application then accepted within 24 hours. Funding Circle is excellent for a variety of needs. You can apply for a loan for the minimum amount, which can see you through a rough patch with some short-term financing. Alternatively, you can use the loan to expand your operation. One notable feature with Funding Circle is that, if you are doing well one month, you can pay back the loan early with no penalty. 

Credibility Capital – For Those Who Have a Strong Credit Score

The loans from Credibility Capital come in amounts that range from $25,000 to $350,000. The terms that you can pay back the borrowed amount comes with three options: one year, two years, or three years. Interest rates start at 8%. 

To be eligible for a loan from Credibility Capital, you need to have a business that has been operating for at least two years. Your company also needs to be generating revenue. In terms of your personal credit score, you will need a rating of 650 or higher to qualify for this loan. Unfortunately, if your business operates out of Nevada, North Dakota, South Dakota, or Vermont, then you are not eligible, even if you meet the other criteria.

OnDeck – For Those Who Don’t Have a High Credit Score

Unlike Credibility Capital, OnDeck comes with a low credit score requirement of 500. As well as the low credit score, you need a business that has been running for one year. In return for the low eligibility requirements, you should prepare yourself for a higher than the average interest rate. Interest rates start out a 9.99% for amounts from $5,000 to $500,000. You should also expect an origination fee that can range from 2.5% to 4%. Like Funding Circle, the loan application can be completed in ten minutes with you then being able to get the funds in less than 24 hours. OnDeck does offer discounted interest rates to those who make regular use of their services. 

Kabbage – For Those Who Want Money Fast with Minimal Questions Asked

Some term loan issuers require your business to be making a set amount each month to be applicable for their small business loans. Kabbage is one of those issuers, though the requirements are much less than competitors. To be eligible for a loan from Kabbage, you will need either a $50,000 annual revenue or for your business to make $4,200 per month over the last three months. However, your business must have been operating for at least one year. If you meet these requirements, then you can expect a loan of up to $250,000 to be paid back with terms of 6, 12, or 18 months.

The best thing about Kabbage is that you can get access to your money quickly. You will need to fill out a simple application that takes 10 minutes, and then you can receive your funds shortly after that. The downside to Kabbage is the APR, which can become very high. First, the lender takes an amount ranging from 1.5% to 10% as their interest rate. This advertised interest rate is monthly, meaning if you take a loan of $15,000 and pay a monthly interest fee of 2%, then you end up paying back $20,400 or just over 10% APR.

Kabbage is not a bad option, but if you can find lenders with better terms and don’t need instant cash, then they may be a better option. 

Lending Club – For Those Who Want a Lower Maximum APR

Lending Club offers peer-to-peer lending to borrowers with fair credit and can issue funds quicker than a traditional lender. There is no credit score requirement though a score of 620 will secure you a better interest rate. The APR to expect from Lending Club can range from 7.77% to 35.11%. The maximum APR is lower than other online competitors, with some lenders going as high as 90%. Gaining access to your funds can take between 2 and 14 days. Such a period is not as fast as some online lenders but still faster than if you were to source your loan from a physical bank. One downside to Lending Club is that its services are not available in Iowa.

SBA Loans

SmartBiz – For Those Who Want to Apply for an SBA Loan Online

SBA Loans were once only able to be applied for at a physical bank. You had to walk into a bank, wait in line, and then fill out your application. SmartBiz changed this for the better with their online SBA loans. The terms for a loan from SmartBiz can differ per your requirements. If you are seeking a loan for real estate purchasing, then you can expect an amount that ranges from $500,000 to $5 million with interest rates ranging from 6.75% to 8.00%. A loan issued for working capital will secure a much lower amount. Amounts ranging from $30,000 to $350,000 are available with a slightly higher interest rate between 8.00% and 9.00%. You can expect your loan on repayment terms of 10 to 25 years. 

SBA loans are known for their strict application terms, and SmartBiz is no different. For both real estate funding and working capital loans, you must have a business that is two years or older. Along with that, you must be a U.S. Citizen or legal permanent resident. Your personal credit score is also taken into consideration. For working capital, you will need a score of 650, and for real estate, you need a score of 660. These are the minimum requirements, with a higher score always being better. You must also provide proof of your ability to pay back your loan. If you meet these criteria, then the application takes less than 5 minutes. Provided your application meets their requirements; you can have the money in as little as seven days.

Wells Fargo – For Those Who Want to Apply for an SBA Loan Via Traditional Means

Wells Fargo has no way to apply online, although they have experience issuing SBA loans to ensure you receive the best possible service. The online video from their site explains their offers in detail. Those offers, as mentioned above, come in 3 forms. There is the SBA 504 loan, the SBA 7(a) loan and the SBA express loan. 

First, the SBA 504 from Wells Fargo can be issued with an amount of up to $6.5 million. The terms of the loan can vary with up to 10 years allowed for equipment and up to 25 years on real estate.

Next, the SBA 7(a) loan comes in the form of an amount of up to $5 million. Again, terms vary depending on your use of the loan. You can expect up to 7 years for working capital, up to 10 years for equipment, and up to 25 years for real estate.

Finally, the SBA Express loan is part of the same program as the SBA 7(a) loan. As the name implies, the loan is offered with a more streamlined application process. 

The SBA 7(a) and Express loans are more flexible with the SBA 504 intended for large real estate projects. Pending a successful application, you can usually have the money within 30 to 60 days.

Business Lines of Credit

OnDeck – For Those Who Want Fast Funds

You can gain approval for a line of credit from OnDeck in minutes with you gaining access to your funds in less than 24 hours. It is for this reason that they make this list more than once. A line of credit can be issued for up to the amount of $100,000. To gain access to this amount, you will need a credit score of 600 or more. Your business should have been operating for at least one year to be applicable while also making an annual revenue of $75,000 or more. 

OnDeck requires you to make payments weekly. Interest rates start at 13.99% with a repayment term lasting six months. You can make repayments early, and although there is no prepayment fee, you will need to cover the outstanding interest. A downside to OnDeck is the $20 monthly maintenance fee though if you withdraw $5,000 or more in the first five days of opening your account, you can avoid this fee.

Kabbage – For Those Who Want a Higher Credit Limit Without Meeting Strict Requirements

Kabbage offers a high line of credit with a maximum lending amount of $250,000. A lower credit score of 550 is required. Your business’s performance is critical to Kabbage. They only support businesses that have been trading for one year or more while making an annual revenue of $50,000 or more. With a 10-minute application form, you can gain access to your line of credit in no time at all. You will have 6 or 12 months to pay back the money you have borrowed as well as the interest.

In terms of interest, the amount can vary with a maximum of 99% but generally starts at 24%. Kabbage comes with some of the highest interest rates available, so it is not ideal for any large purchases. However, if you need a small amount of cash to cover some minor expenses, then Kabbage can work for you. 

Fund Box – For Those Who Want the Ability to Pay Back Early

Fund Box is another online lender with minimal requirements for eligibility. Fund Box requires an annual revenue of $50,000 or more. You should also have been in business for only three months or more. Such terms improve on the already relaxed terms of Kabbage. Fund Box gives you the chance to save money by paying off your loan before the repayment terms of either 12 or 24 months have ended. As well as no prepayment fee, there is also no origination fee or maintenance fee.

The APR rate for your line of credit with Fund Box can range from 10.1% to 79.8%. The interest rates apply for the minimum borrowing amount of $10,000, with the possibility to borrow up to $100,000. Though the maximum credit amount is lower than some competitors, the application only takes a few minutes. You can then expect to have the funds within 24 hours. The downside to Fund Box is that they may require a personal guarantee from yourself as opposed to your business. 

Top Small Business Lenders

Business Credit Card

Capital One Spark Cash for Business – For Those Who Want to Make Use of Cashback

The Capital One Spark Cash for Business card is excellent for small businesses because of the generous cashback rate. Capital One offers 2% on all purchases made using the Spark Cash Card. There is also the chance for you to earn an extra $500 by using the card to make purchases that amount to $4,500 or more. You must make these payments within the first three months of the card being issued to you. A credit score of 690 is required to apply. However, Capital One does recommend you hold an excellent rated credit score of 800 or more to ensure a successful application.

If you are successful in your application, then you can expect a variable APR rate, which currently sits at 19.24%. For the first year, there is no annual fee; however, after that period has passed, the amount will go up to $95.  

A credit score of 690 is required to apply. However, Capital One does recommend you hold an excellent rated credit score of 800 or more to ensure a successful application. If you are successful in your application, then you can expect a variable APR rate, which currently sits at 19.24%. For the first year, there is no annual fee; however, after that period has passed, the amount will go up to $95.  

Brex Corporate Card for Startups – For Those Who Want a Card With No Credit Check

As per the name, the Brex Corporate Card for Startups targets startup companies who have secured funding but are yet to make a profit. Your personal credit score is not taken into consideration when applying for the Brex corporate card. Instead, your companies cash balance and spending habits will decide if you are valid for this card. If accepted, your credit limit will also be determined based on these factors. There are lots of possibilities for you to earn points using this card. You can earn points traveling to work using Uber or Lyft. Alternatively, a company meal can earn you points. Even the use of software can gain you points, Google ads, or Slack, for example.

Chase Ink Business Preferred Credit Card – For Those Who Want a Welcome Bonus

The Ink Business Preferred Credit Card from Chase offers 80,000 points when you spend $5,000 on purchases in the first three months. Eighty thousand points equate to $1000 worth of travel rewards. You can also earn 3 points per $1 spent (valid up until the maximum of $150,000) on select purchases, which include travel and online advertising. This offer is only available per anniversary year. The interest rate of this card starts at 17.99%, with the maximum amount being 22.99%. There is an annual fee of $95, as well as a late payment fee that goes up to $39. A successful application is never certain, but an excellent credit score will help you secure this card. 

Equipment Financing 

Currency Capital Equipment Financing – For Those Wanting Lots of Options in One Place

Currency Capital is not an actual direct lender but a marketplace. Upon filling out your application, over 100 lenders will receive it. Each lender will have their eligibility terms for small business owners though you must first meet those set by Currency Capital. The criteria are not strict; you need a credit score of 585 or higher with at least six months in business. On top of that, you must also have an annual revenue of $75,000. If you can meet these terms as well as the lenders’ terms, then you can expect loan amounts starting from $7,000 and going up to $2 million.

The terms of the loan can vary per lender, but you can expect between one year and five years being available. Again, because Currency Capital is a marketplace, you can sometimes get your payment on the same day, or it can take up to 2 weeks. 

National Funding – For Those Who Want Both Equipment Leasing and Financing Options

National Funding can serve the equipment needs of your company with either financing or leasing of pre-owned equipment. If you go along the route of funding, then you can apply for an amount between $5,000 and $150,000. The payment terms for these amounts can be between 3 and 5 years. To gain access to these amounts, you should hold a personal credit score of 620 or higher.

Your business should also be running for at least six months before you apply for financing. The interest rate for financing from National Funding starts at 8%. This low rate is possible as the equipment you purchase with the loan serves as collateral. Equipment financing works similarly to auto financing with a car serving as collateral as opposed to equipment. 

eLease Equipment Financing – For Those Who Don’t Have An Excellent Credit History

eLease has been providing equipment options to businesses since its start in 1995. From there, they began to offer more direct equipment financing loans. Their requirements for the application are minimal, with no minimum credit score needed. An active and profitable business will, however, secure you better interest rates. eLease allows you to borrow between $3,000 and $500,000.

The amount can be paid back on terms between two years and five years. For this agreement, you can expect an interest rate between 4% and 35%. A bonus option offered by eLease is the $1 buyback option. At the end of the lease terms, when you have effectively paid for the equipment, you can offer to buy it to keep for the amount of $1. 

Invoice Financing and Invoice Factoring

Bluevine – For Those Who Want Low Starting Rates

Bluevine takes a 0.25% fee per week for invoice factoring of amounts starting from $5,000 and going up to $5 million per month. To put that fee in perspective; if you submit invoices worth $10,000, then that leaves you with a weekly fee of $25. That amount can add up over time, leaving you with a large amount of lost profit. As stated above, invoice factoring is a last resort solution and comes at a cost. Even still, that fee is relatively low when compared to competitors.

When you submit your invoices, you will receive 90% of the amount upfront and then the rest minus fees once Bluevine has collected the invoices. To be eligible for Bluevines invoice factoring, you need a personal credit score of at least 530. Invoice factoring is restricted to companies that perform B2B services that have been operating for three months or more. You will also need an annual revenue of $100,000 to receive funds from Bluevine. 

Fund Box – For Those Without a High Credit Score

Invoice financing with Fund Box has similar requirements to the line of credit they offer. There is an annual income requirement of $50,000 or more. There is no fixed time for you to be in business; however, you must have held a business checking account for at least three months. For meeting these requirements, you can receive a line of credit up to £100,000 using your outstanding invoices as collateral. Repayment terms start from12 months and go up to 24 months. You can expect to pay weekly fees, starting from 0.39% of the amount of the invoices. It is possible to pay off the loaned amount early to avoid these fees from adding up. Financing, as opposed to factoring, lets you retain control of your invoice collections. 

Paragon Financial Group – For Those With High-Value Invoices

Paragon Financial Group offers to factor invoices ranging from $30,000 up to $10 million. As with Bluevine, upon successful application and submission of your invoices, you will receive between 80% and 90% of the total invoiced amount. You can obtain these funds in less than 24 hours. There is no credit check on your part, but Paragon Financial Group does check the credit scores of your customers before taking on your invoices. In terms of fees, you can expect to pay between 1.25% and 2.5% per 30 days. The high minimum factor amount can put Paragon Financial Group out of reach for smaller businesses, although they are an option for those who find themselves with a large number of outstanding invoices. 

Merchant Cash Advance

National Funding – For Those Who Want No Additional Fees

National Funding doesn’t just offer equipment loans. You can also use their services to take out a merchant cash advance. This advance can total up to $250,000, with you able to receive the funds within 24 hours subject to the acceptance of your application. To ensure your request goes through without a hitch, you should have been in business for at least one year with monthly credit card sales totaling over $3000. You can prove your income amount via credit card sales by sending them the reports of the last four months of your credit sales.

There is no collateral needed nor hidden fees for you to worry about. If you find your business picking up, then you can make a prepayment on the loan with no additional fees.

Lendio – For Those Who Want to Make Use of a Marketplace

Lendio is a marketplace as opposed to an actual lender. What this means for you is that you can receive more options with a single application. However, this means that though Lendio has specific requirements, the requirements of the actual lender may differ. To make use of Lendio’s services, you will need a credit score of 550 or higher. Holding this credit score or higher will open up loans to you that range from $5000 to $200,000 with repayment terms up to 2 years. Over those two years, you will be expected to cover an interest rate that starts at 18%. If these terms are agreeable to you, then you can expect to receive your funds within 24 hours. Quite handy, isn’t it?

Can Capital – For Those With a New Business

Can capital offer a merchant cash advance starting from $2,500 and going up to $250,000. These amounts are offered based on payment needing to be made back on terms between 6 and 18 months. The appeal to Can Capital is that they provide financing to young, growing businesses. You would need to have been operating from at least four months, which is the shortest period offered for the small business financing options on this list. A downside to Can Capital is that they charge an admin fee of $395 for their services. The rates for this merchant cash advance package start at 1.15% though they can go up to 1.48%.


Kiva – For Those Who Want Interest-Free Loans

Kiva operates based on the principle of offering capital to those who need it. For that reason, you can borrow up to $10,000 with 0% interest on this small business loan. Funding for your loan comes via crowdsourcing. You fill out an application to make sure you meet the requirements of Kiva; this can take up to 30 minutes. You then have 15 days to prove you are a trusted borrower. You can verify your creditworthiness by asking family and friends to contribute to your loan amount. You then have another 30 days to reach your target while being funded by the whole Kiva community. You then have up to 36 months to pay back your loan. 

Kabbage – For Those Who Can’t Get a Microloan From a Non-profit Organization

A microloan from Kabbage comes with an interest rate that starts at 24% but can go all the way up to 99%. Despite that, the application procedure is much quicker than the above Kiva. You must have an annual revenue of $50,000 while also holding a personal credit score of 600 or higher. If you meet these criteria, then you can access your funds on the same day. In terms of a borrowing amount, you can borrow as little as $1000. You can later pay back this amount with monthly payments over a 6, 12, or 18-month period. 

Accion – For Those Who Need a Larger Microloan

Accion is another non-profit organization though its small business loan amount goes up to $50,000. For this amount, the repayment terms range from 6 months to 50 months. To gain access to this loan, you need a personal credit score of 575 or higher with evidence of consistent cash flow. 

Final Tips on Top Small Business Lenders

The best small business lenders are those that encourage growth in new businesses. Sometimes a small business owner needs a bit of help to take their company to the next level, and this is where lenders can step in. The type of support you need will help decide on the type of loan you require.

If you can gain access to a microloan, then this can help you through a tight period. Kiva would be the best option for this purpose though their acceptance process is time-consuming and strict. Alternatively, if you just need a bit of extra cash, then a line of credit could work just as well. Kabbage offers the most money for a line of credit, but the interest rate may cause more trouble than it is worth. If you can make do with less cash, then OnDeck offers terms that are more than fair. 

If you are finding it hard to get an SBA loan, then Smartbiz would be your best option. They have the advantage of being online only while also issuing the funds in less than a week.

You might not need a vast amount to finance your company, though you will feel more secure with a means of credit to help get you through an unforeseen emergency. A business credit card can do just that for you. It will also come in handy when you have to divide your personal and business spending as well.

Do you have a preferred small business lender? Have you seen your business grow with the help of financial aid? Feel free to share your thoughts in the section provided below.


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