Matthew Sexton

Commercial banking is a group of bank products and services designed to meet the financial needs of corporations, medium and large businesses, and government clients. These can include deposit accounts, commercial lending offerings, merchant services, and investment products. This contrasts with retail banking, which offers similar financial services to individual clients and the general public and, in most cases, the same banking provider offers commercial and retail banking services. Banks will provide products and services to small businesses out of one or both of those banking categories. If you need commercial banking products and services,  is an excellent option. You can earn cash back bonuses for opening a new business checking account, and it offers a wide range of small business resources and products. Visit Bank of America’s website for more information. Functions of Commercial Banking Commercial banks have several essential functions that allow them to serve business and corporate customers with all their potential banking needs. The functions of commercial banking are accepting deposits, lending funds, acting as an agent, and offering other financial and utility services. 1. Accepting Deposits The most common function of a commercial bank is accepting deposits. Often, these accounts pay interest to depositors but come with monthly fees, which can be waived by meeting certain balance or transaction requirements. Commercial banks will accept deposits in three types of accounts: Current accounts: The most common bank account, these allow customers to withdraw money at any time without notice and often don’t earn interest. Saving deposits: These are smaller accounts that typically earn interest. There may be limits on when and how much can be withdrawn. Term or fixed deposits: Money in these accounts is held for a set period and cannot be withdrawn without a severe financial penalty until the term expires. 2. Lending Funds Commercial banks will provide funding to companies, allowing them to expand, purchase equipment, meet day-to-day financial needs, and acquire additional property, among others. Companies will repay the bank's funding with interest until the loan is satisfied. There are several types of loans provided by commercial banks: Commercial term loan: A short-term lending product used by companies to purchase equipment, inventory, or use for cash flow purposes. Loans are for a set period, usually less than 10 years, with full amortization at the end of the term. Commercial line of credit: A revolving line of funding provided to a company. The company can take draws against the line of credit, with interest paid only on the amount used. Draw periods can range from a few months to a few years. Companies will often have to present financials annually to renew the line of credit for future use. Commercial real estate (CRE) loan: A mortgage loan used for the purchase, rehabilitation, or expansion of real estate. These types of loans include fix-and-flip loans, Small Business Administration (SBA)-backed loans, hard money loans, and conventional mortgage loans. These can be short-term loans that lead to permanent financing or a property sale or can be permanent financing of up to 30 years. Cash credits: Rather than loaning a company money, the commercial bank allows a company to draw against a deposit account created by the commercial bank. The company borrows money without having a credit balance, and interest is only paid on the used amount. It’s often secured with property, fixed assets, or stocks as collateral. 3. Acting as an Agent Commercial banks can perform functions for their customers to assist with their business needs. Some of these functions include: Collecting bills Offering insurance Offering investment products Purchasing or redeeming securities Acting as executor, administrator, or trustee of a client’s estate Helping prepare income tax returns and claiming tax refunds 4. Offering Other Financial and Utility Services Businesses often need other services from their commercial banks besides deposit, lending, and agent. Commercial banks can facilitate these business services, as well as: Overdraft fee protection Traveler’s checks Locker facilities Debit and credit cards Foreign currency exchange Funds transfers including wire services Discounting bills of exchange Commercial Banking Products & Services Commercial banks provide various services that can benefit a business beyond just deposit accounts. They are structured the same way for companies as they would for individual customers. In addition to deposit accounts, here are some of the other services offered by commercial banks: Industrial loans and other lending services: Loans are the primary source of profits for commercial banks. By providing loans to corporations, commercial banks earn income in the form of interest paid to them by their borrowers. Merchant services: Most commercial banks offer merchant services that include credit card processing, mobile payment solutions, gift cards, and electronic check services. Global trade services: These services may include foreign exchange, foreign trade financing, letters of credit, global payments, export financing, and bank guarantees, among others. Leasing: Many companies use leasing as a financing method for acquiring real estate, automobiles, factory equipment, and other major fixed assets. Treasury management services: Commercial banks offer funds collection, disbursement, and fraud prevention. Corporate-oriented products and services: These include retirement products, employee stock ownership plans, payroll services, advisory services, and insurance products designed for corporations and institutions. Pros & Cons of Commercial Banking Types of Commercial Banks There are three types of commercial banks, classified by how they’re owned or where they’re located. Any kind of bank can work for your bank as long as you’re eligible to get an account. Click the tabs below to learn more about each type of bank. Retail Banking vs Commercial Banking Retail banking and commercial banking are often handled by the same financial institutions. Retail banking provides financial services to the general public, while commercial banking offers those services to medium to large-sized businesses and corporations. Almost all banking services in a retail bank would also be available in a commercial bank, including deposit accounts and lending products. Commercial banks would additionally offer business merchant services, investment products, and retirement planning services. Small startups might find their initial banking products housed in a bank's retail banking department when they first open a business bank account. As the business grows, adds employees, and potentially incorporates, those accounts may be moved to the commercial banking department. While the general steps for opening a business bank account at a retail or commercial bank will be similar, the specific documentation may differ. The commercial bank may require your business to be established longer, have higher revenues, and be structured as a limited liability company (LLC), S corporation (S-corp), or C corporation (C-corp). When choosing a bank for your small business, you should consider whether the bank has both retail and commercial banking services. This would allow the same institution to continue serving your business as it grows. Commercial Banking vs Investment Banking If retail banking caters to the smallest businesses and commercial banking to the mid-sized and larger businesses, the largest corporations are served by investment banks. They provide services to large, publicly traded corporations. They help these corporations by advising on investment strategies, stock issuance, and potential acquisitions and mergers. They also handle large amounts of money, typically deal with longer-term investments, as opposed to day-to-day financial transactions, and can assist with raising capital. Here’s a table with some of the differences between the two types of banks. Frequently Asked Questions (FAQs) What is an example of commercial banking? While commercial banking can include services that would also fall under retail banking, such as deposit accounts and lending products, other services would be exclusive to it, including offering investment products, payment processing, merchant services, and global trade services. What are the primary functions of a commercial bank? A commercial bank has four primary functions. Accepting deposits: These deposits can be accepted into current accounts, saving deposit accounts, and term or fixed deposit accounts. Lending funds: Commercial banks should offer a variety of lending products, including term loans, lines of credit, real estate loans, and cash credits. Acting as an agent: A commercial bank will act on behalf of the business for many transactions, including collecting bills, offering insurance, offering investment products, and helping with tax preparation. Offering other financial and utility services: Commercial banks offer services outside of deposit and lending services, including overdraft fee protection, traveler’s checks, locker facilities, debit and credit cards, and foreign currency exchange. What are the advantages of a commercial bank? There are three major advantages of a commercial bank. They provide products specifically designed for the financial needs of a business, assign a customer service representative that works directly with the business to ensure their needs are met, and enable you to set up deposit accounts for your employees. Bottom Line Commercial banks can provide your business with a wide range of services. Many offer commercial and retail banking services, allowing your business to grow into the services that a commercial bank offers. Before you start a business relationship with a bank by opening a small business checking account, consider a bank that will allow your business to grow and expand.

The best fast business loan providers should offer a fast and simple application process, a quick loan approval process, and funding within one business day. These providers should offer a variety of loan products with quick funding or one outstanding loan product. Fast business loans are often available to low credit borrowers as long as the business meets revenue and time-in-business requirements. They often come with high interest rates and fees, so borrowers should shop around to find the best terms for their loan. Here are the eight best fast business loan providers: : Best overall fast business loan website for multiple loan offers : Best fast business loans with the lowest rates : Best for longer-term loans for lower credit score borrowers : Best small business line of credit : Best for business owners with very low credit : Best for a simple application process : Best for borrowers looking for simple repayment terms : Best for invoice factoring Best Fast Business Loans At a Glance See fullscreen table × Lendio: Best Overall Fast Business Loan Website for Multiple Loan Offers Why We Like Lendio is our choice for the best fast business loan provider thanks to the ability to get multiple loan offers with just one application. With more than 75 lenders available in the Lendio marketplace, you can be sure to get the best rates and terms available with a 15-minute application. Because there are so many lenders in the Lendio network, specific qualification terms and rates are a little difficult to pin down. However, you should expect to need at least a 600 credit score, at least $8,000 in monthly revenue, and at least six months in business. There may be providers in the marketplace that will lend to sub-600 credit score borrowers, but rates and fees will be substantially higher. Lendio provides access to lines of credit, short-term business loans, and equipment loans. Other types of loans available in the marketplace wouldn’t necessarily be considered fast business loans but, if you have some time to wait for funding, you may get better rates and terms out of those loans. You can either fill out an application on the Lendio website or call them toll-free. Funding is promised within one business day once you are approved. Visit Lendio’s website to apply. Fundbox: Best Fast Business Loans With the Lowest Rates Why We Like Fundbox , which is our top choice for best easy business loan, is an excellent option for fast business loans as well thanks to its low starting interest rates. Interest rates start at just 4.66%, slightly lower than Bluevine’s lowest interest rate. While term loans and lines of credit are available through Fundbox, the company’s focus on its website is its line of credit product. Once you fill out a 10-minute application, you can get a credit decision almost immediately. Once approved, you can click on the website to draw funds from your Fundbox account as soon as the following business day. You can choose your repayment plan each time you draw funds with no prepayment penalty. You will need a credit score of at least 600, at least $100,000 in annual revenue, and at least six months in business to qualify. You can get a line of credit of up to $150,000 with draws repaid over a 12-week or 24-week period. Term loans of up to $150,000 can be repaid weekly over a 24-week or 52-week period. Drawbacks include potentially high APR depending on fees and repayment terms, and a weekly repayment schedule that can be challenging for some businesses to manage. Fundbox allows you to apply directly through its website, or you can call them to get started. Visit Fundbox for more information or to apply. National Funding: Best for Longer-term Loans for Lower Credit Score Borrowers Why We Like National Funding is another great choice for best quick business loans thanks to its fast application process. By filling out a one-page application and providing three months of business bank statements, you can apply in less than 30 minutes with funding in one business day. You can get up to $500,000 for up to five years. In addition, even though other providers have lower minimum credit scores, National Funding has shown a willingness to work with lower credit borrowers in the past. That’s why it is an excellent choice for subprime borrowers. However, lower credit score borrowers should expect higher fees and rates. You will need to be in business for at least six months, have a personal credit score of at least 600, and make $250,000 in annual revenue to qualify. National Funding provides repayment flexibility with daily, weekly, and monthly repayment options available. The company also offers early payoff discounts. Customers who pay off a working capital loan balance within the first 100 days receive a 7% discount on the total remaining balance. Drawbacks include potentially high APR for lower credit borrowers and a higher annual revenue requirement than most providers on this list. You can call National Funding or visit the company’s website to apply. Visit National Funding’s website for more information or to begin the application process. Bluevine: Best Small Business Line of Credit Why We Like Bluevine By filling out a two-minute application, can provide you access to the best small business line of credit on the market. With decisions in as fast as five minutes, Bluevine offers one of the fastest application and approval processes on this list. Bluevine offers just one lending product, but its small business line of credit is outstanding. You can get up to a $250,000 credit line. Interest is paid only on the amount used, and you can take multiple draws so long as you have available credit. Each draw is repaid over either a six-month or 12-month period. Funding for each draw is promised within 24 hours. You will need a personal credit score of at least 625, $10,000 in monthly revenue, and at least six months in business to qualify. You also need to be operating or incorporated in the United States. Bluevine requires basic information about your business, a bank connection, or three business bank statements, and for your business to be in good standing when applying. In addition, Bluevine has an outstanding free business checking product that earns a strong interest yield. Bluevine is our pick as the best free business checking account. You can apply directly through Bluevine’s website. Visit the company’s website for more information or to apply. SBG Funding: Best For Business Owners With Very Low Credit Why We Like SBG Funding For business owners with very low credit scores, is a good option for a fast business loan. As long as you have at least $120,000 in annual revenue and have been in business for at least six months, you can qualify for a term loan or line of credit with as low as a 500 credit score. The application process is fast, with the process taking about 15 minutes. Once approved, you can receive funding in as little as one business day. SBG Funding also has one of the highest loan amounts available on this list. You can get up to $5 million for up to five years. The biggest issue with SBG funding is the high interest rates and fees. As expected with lower credit borrowers, interest rates start at 23.1% and balloon from there. While an upper range of APR can’t be calculated due to varying fees and loan terms, expect it to be among the highest on this list. You can start the loan process on the company’s website or via phone. Visit SBG Funding’s website for more information or to apply. QuickBridge: Best for a Simple Application Process Why We Like QuickBridge With its simple application process, is a great choice for a fast business loan. You can apply directly through QuickBridge’s website. You’ll be connected to a funding specialist who will work with you to find the right lending product for your needs. Once finalized, funding will be completed within one business day. You will need your driver’s license and three bank statements to apply. You can get up to $500,000 for up to 24 months, with daily or weekly repayment. Starting interest rates are very competitive with rates as low as 5%. QuickBridge offers a similar product as National Funding. National Funding ends up slightly higher on our list thanks to a monthly repayment option and up to a five-year term. But both are excellent choices for fast business loans. As with most options on this list, lower credit borrowers may find high APRs due to high interest rates and short terms. QuickBridge gives you the option to apply through its website or via phone. Visit QuickBridge’s website for more information or to apply. OnDeck: Best for Borrowers Looking for Simple Repayment Terms Why We Like OnDeck is a great option for a fast business loan, thanks to the company's simple repayment process for its line of credit product. Separate draws are combined into one daily or weekly payment, making it much easier to manage your outstanding debt. In addition to its line of credit product, OnDeck offers a term loan product that allows you to borrow another term loan once your previous one is paid halfway down. There is also a prepayment benefit for borrowers who qualify. Loans paid off early can qualify for having the remaining interest waived. The application process takes about 30 minutes. If approved, funding can be received within one business day. You will need at least a 600 credit score, at least $100,000 in annual revenue, and at least one year in business to qualify. OnDeck loans can have very high APR rates. Rates start at 29.9%, and the average APR, according to OnDeck, is 62.1%. Other options on this list will likely provide rates much lower than OnDeck. In addition, OnDeck will reject borrowers that don’t meet the credit score, time in business, and annual revenue requirements. Borrowers who don’t meet those requirements may want to consider Fundbox or National Funding. You can go to OnDeck’s website to begin the application process for either loan product. Visit OnDeck for more information. FundThrough: Best for Invoice Factoring Why We Like FundThrough offers a different type of financing product for companies that invoice customers. For companies interested in invoice factoring or accounts receivable (A/R) financing, FundThrough is an excellent choice for a fast business loan of a different type. FundThrough is our choice as both the best invoice factoring company and best A/R financing company. The company’s two products offer both types of financing. Its Express Invoice Financing is an A/R financing product for funding amounts of $15,000 or less. Meanwhile, the company’s Velocity Invoice Factoring is an actual factoring product with no maximum size other than it is based on the invoice size and financials of the company. Both types can be applied for in 30 minutes or less, with funding within 24 hours. Rates tend to be a little lower with invoice factoring because the funding is backed by the unpaid invoice. FundThrough is a good choice for lower credit score borrowers that can leverage company invoices to get better rates than they might get with another provider. You will need at least a 600 credit score, six months in business, and at least $120,000 in annual revenue to qualify. You can apply on the company website, or you can reach out to them via phone, online chat, or email. Visit FundThrough’s website to get started. Types of Fast Business Loans There are several types of fast business loans available from each of the lenders above. Regardless of which type of loan you choose, the process of getting a small business loan will be similar with each loan type. The three types of fast business loans available include short-term business loans, business lines of credit, and invoice factoring: Short-term business loan: You receive a lump sum of funding, repaid over a fixed period of time. This works best for financing equipment or renovations. Business line of credit: This is a revolving credit line for ongoing (usually smaller) expenses. A line of credit helps with cash flow management. Invoice factoring: This allows you to get paid for outstanding invoices and helps with cash flow while you wait for invoices to get settled. Alternatives to Fast Business Loans Fast business loans are a great choice for quick funding for immediate business needs. However, other loan types provide better rates and terms. If you don’t need funds quickly, consider one of the following loan types that will have lower interest rates and better repayment terms: Small business credit cards: Best used for small and medium, often recurring expenses. Many have 0% introductory rates, and you can earn cashback rewards. Small Business Administration (SBA) loan: Best for businesses with good credit and a solid business plan that don’t need funds quickly. can also help you with SBA loans for startups. Rollover for business startups (ROBS): Ideal for businesses with owners willing to invest retirement funds of $50,000 or more. Check out the website for more information on ROBS or to speak with a ROBS specialist. How We Evaluated the Best Fast Business Loans When considering the best fast business loans, we compared the following criteria: Speed of application process and funding Ease of loan application and repayment process Maximum loan amount Interest rates and estimated APR Repayment terms and schedule Collateral and guarantee requirements Funding speed Minimum credit score, time-in-business, and annual revenue requirements Fees, and any potential fee discounts Customer reviews Frequently Asked Questions (FAQs) How fast can you get a business loan? Depending on how well qualified you are for the loan, you can apply for a fast business loan in less than 15 minutes and receive funding either the same business day or the next day. How can I get money fast for my business? Using an online business loan provider is the best way to get money fast for your business. They often will have more lenient requirements than a traditional brick-and-mortar bank and faster loan underwriting. You can get funded in less than 24 hours, however, you will likely have to pay higher rates and fees. Why choose an online lender for a fast business loan? Online lenders usually have more lenient qualifications than traditional banks. They also typically have faster loan underwriting and processing. This means they can get you funded in as little as 24 hours. While this often means higher rates and fees, well-qualified borrowers might also find discounted rates, prepayment benefits, and account perks that might not exist with traditional banks. Bottom Line Companies looking for fast business loans can find one from any of the providers in this guide. These providers offer a simple, fast application process, fast approvals, and funding within 24 hours. However, these loans can also come with higher rates and fees for lower credit borrowers. Before applying, shop around to multiple lenders and find the terms that best meet your business needs.

The best banks for real estate investors should offer a variety of outstanding business products and services to help business owners buy, sell, and rehabilitate property. These include business bank accounts, business lending products, and business support offerings, including expense management systems. While not every provider on this list provides banking, lending, and business support services, those that lack these offerings instead provide a service that’s specifically geared toward real estate investors and landlords. Here are the eight best banks for real estate investors: : Best overall for outstanding business checking, business support, and CRE loans : Best CRE multifamily lender with best business checking and credit cards *: Best small business line of credit with interest-earning checking : Best for long-term owner-occupied CRE loans *: Best for free landlord banking with CRE loan products : Best digital-only bank with full-service business lending : Best for CRE loans for multifamily properties *: Best for online rent collection with banking product *Providers are financial technology (fintech) platforms backed by and Federal Deposit Insurance Corp. (FDIC)-insured through a supporting bank partnership (Coastal Community Bank for Bluevine and Blue Ridge Bank, N.A. for Baselane and Stessa). Best Banks for Real Estate Investors At a Glance Bank of America: Best Overall for Outstanding Business Checking, Business Support & CRE Loans Bank of America FundamentalsTM Business Checking Overview What We Like About Bank of America For real estate investors looking for great business checking, outstanding business support products, and several commercial real estate loan products, is an excellent choice. It’s our best overall bank for real estate investors as it has one of the best small business checking accounts available and is the leading bank for small business loans. Bank of America offers two business checking options with waivable monthly fees. Its basic business checking, Business Advantage Fundamentals Banking, allows for up to 200 free transactions and up to $7,500 in free cash deposits each month. The monthly fee is $16, but there are several easy ways to get the fee waived. For real estate investors looking for loans, Bank of America offers CRE loans, lines of credit, term loans, and SBA loans. It also has outstanding business credit cards and provides your Dun & Bradstreet credit score for free if you have a business checking account. Other than checking and lending products, it has business savings, CDs, and financial analysis through Merrill financial advisor. You can stop by one of Bank of America’s branches or visit the company’s website to apply. Chase: Best Commercial Real Estate Multifamily Lender With Best Business Checking & Credit Cards What We Like Chase Another excellent choice for real estate investors is , thanks to a combination of the best small business checking account on the market, great business support products, and strong lending products. Bank of America edges Chase slightly given a better basic checking product and the ability to get your business credit score through Bank of America’s checking app. Chase has three different business checking products that all have waivable monthly fees as long as you meet specific requirements. The basic checking account, Business Complete Banking, provides only 20 free transactions and $5,000 in free cash deposits monthly. You can get a $300 bonus for signing up for a new account and meeting account requirements. Real estate investors needing financing will find a wide range of lending options from Chase. It offers business and commercial lines of credit, term and draw loans, advised lines, commercial real estate financing, and SBA loans. It also has a great selection of business credit cards. For businesses needing merchant and collection services, Chase offers both. You also get great software integrations, fraud protection, and additional perks when you pair business credit cards and savings accounts with its business checking. All of these services make Chase one of the best banks for small businesses. You can visit a bank branch or Chase’s website to open an account. Bluevine: Best Small Business Line of Credit With Interest-earning Checking What We Like About Bluevine While doesn’t offer the full range of lending products that other providers on this list have, it has an outstanding business checking account combined with the best small business line of credit on the market. This is why we like Bluevine for real estate investors. Its checking allows you to earn 1.5% APY on all balances up to $100,000, so REI customers can draw interest on funds from a sold property while preparing to purchase their next project. In addition to its excellent checking product, it provides a business line of credit of up to $250,000 at rates as low as 4.8%. Draws against the line of credit can be paid back in six- or 12-month terms, and you only pay interest on the amount of the line of credit used. Bluevine has great software integrations with QuickBooks and Xero and connects with popular business payment solutions, such as Stripe, PayPal, and Expensify. Since Bluevine is digital-only, it has no physical branch locations. Visit Bluevine’s website for more details on opening an account. U.S. Bank: Best for Long-term Owner-occupied CRE Loans What We Like About U.S. Bank is an excellent choice for real estate investors, and it would be even higher on this list if not for geographic restrictions. Your business must be in one of the 26 states listed above to open an account. If your business satisfies this, it’s a great option. The company offers a great business checking product that charges no monthly fees on its basic business checking product, known as Silver Business Checking. You get 125 free transactions and 25 free cash deposits per transaction cycle. U.S. Bank has the most varied types of business loans on this list. In addition to traditional business and commercial real estate loans, it offers healthcare practice and McDonald’s franchise financing. It also has different business credit card options, including Triple Cash Rewards World Elite Mastercard® and Business Leverage® Visa Signature® Card. With loan terms of up to 25 years and SBA loans of up to $12.375 million, U.S. Bank is an excellent choice for long-term owner-occupied commercial real estate loans. You can also take advantage of its payment processing systems, check fraud protection, and cash management services. Additionally, you can earn a $400 bonus when you open a new, eligible U.S. Bank business checking account (promo code: AF49ZCB) and complete qualifying activities, subject to certain terms and limitations—offer valid through Jan. 9, 2023. Stop by a U.S. Bank branch or visit the company’s website for more information. Baselane: Best for Free Landlord Banking & CRE Loan Products What We Like About Baselane Another new fintech provider is , which is geared toward landlords. This makes it a good choice for real estate investors looking to flip and hold property or buy investment property for rental purposes. It offers a business checking product with no fees. You can earn 1.66% APY on all deposits to your account. Free ATM withdrawals are available at more than 55,000 Allpoint ATMs, and you can also make cash deposits at Allpoint ATMs but not at out-of-network ATMs. You can get up to 5% cash back in debit card rewards. The company allows you to send ACH payments, pay invoices, make transfers, and deposit checks from any device, and you can see all your property finances in one location. Additionally, Baselane has commercial real estate loan products ranging from $50,000 to $2 million for up to 30 years. It also provides planned unit development loans, long-term retinal loans, portfolio loans, and rehab loans. It even helps you with tax preparation with Schedule E assistance and property tags in the software. As it’s digital-only, there are no physical locations. Go to its website to open an account. First Internet Bank: Best Digital-only Bank With Full-service Business Lending What We Like About First Internet Bank If you’re looking for a digital-only bank that provides a wide variety of business lending products, is a great choice. Not only does it offer an interest-earning business checking product, but it also has several business loan options. It provides a maintenance fee-free business checking account that earns 0.50% APY on balances of $10,000 or more. In addition to no monthly fees or transaction limits, it refunds up to $10 in ATM fees each month. For REI customers looking for loan products, First Internet Bank offers SBA loans, commercial real estate lending, public finance, and term loans. You can get lines of credit starting at $100,000 or up to $5 million in SBA loans. The institution also has interest-earning savings, money market accounts, CDs, personal bank accounts, and health savings accounts. While it has no physical locations, you can visit First Internet Bank’s website to open an account. Wells Fargo: Best for CRE Loans for Multifamily Properties What We Like About Wells Fargo For real estate investors interested in a bank that provides both commercial real estate loans for multifamily properties and a great business checking account, is a solid option. The Mortgage Bankers Association (MBA) named Wells Fargo the top lender of commercial/multifamily mortgage loans in 2021. You can get SBA loans up to $11.5 million for up to 25 years. Interest rates start as low as prime plus 1.75% but will vary depending on the loan product. It also offers lines of credit, standard commercial real estate financing, and business credit cards. Commercial real estate loans start at $50,000 and go up from there. Wells Fargo offers three different business checking products. Its lowest-tier account, Initiate Business Checking, has a $10 monthly fee, which can be waived by having at least a $500 balance. You get 100 free transactions and $5,000 in free cash deposits monthly at this tier. You can also access fraud protection, merchant services, and point-of-sale (POS) solutions with Wells Fargo. Visit a branch or the company’s website to open an account. Stessa: Best for Online Rent Collection With Banking Product What We Like About Stessa While is the only provider in this guide that doesn’t have lending products, its built-in cash management system and online rent collection product make it a strong choice for real estate investors. Its business banking product is largely fee-free, with only a $5 fee charged for outgoing domestic wires, and its bank account earns 2% APY and 1.1% cash back on debit card purchases. The company has no monthly fees, minimum balance requirements, or transaction limits. It also doesn’t have an ATM network, and while it doesn’t charge ATM fees, you likely will pay third-party fees. Another drawback is the inability to make cash deposits, though this may be less necessary for real estate investors who receive and send wire transfers to complete real estate purchases. As part of its cash management system, Stessa charges no fees for bounced checks and offers benefits to help manage and grow rental portfolios. It even offers unlimited free accounts for each property or portfolio, and you’ll receive unique numbers for physical and virtual debit cards, allowing you to track expenditures easily. Stessa is digital-only, so visit its website to sign up for an account. How We Evaluated the Best Banks for Real Estate Investors When evaluating the best banks for real estate investors, we considered the following: Monthly fees, if any, and how easily they’re waived Required opening deposit and balance minimums Transaction limits before fees ACH and wire transfer fees ATM fees and availability Cash deposit fees and availability Interest yield, if applicable Software integrations Other business services provided Number of loan offerings Size of loans offered Loan qualifications required Time in business and minimum revenue requirements Loan rates and maximum terms How widely available the bank is Customer reviews What You Need to Open a Business Bank Account Each provider on this list may require different documents to open a business bank account. Generally, you’ll need: Employer identification number (EIN) or Social Security number if you’re a sole proprietor Fictitious business name certificate or doing-business-as (DBA) certificate Business formation documents Organization documents, including your ownership agreements Business licenses Government-issued photo ID, such as a passport or driver’s license Frequently Asked Questions Which bank is best for investors? Bank of America is our choice as the best bank for real estate investors since it has outstanding business checking products that also provide your Dun & Bradstreet business credit score for free combined with outstanding commercial lending options. What kind of bank account should I open for real estate? When you open a bank account for real estate, you should consider an account that earns interest and has limited fees. While savings accounts earn the highest interest rate, finding an interest-earning checking account like Bluevine is best because you won’t be subject to monthly transaction limits that you might find in savings accounts. Which bank is best for real estate loans? Bank of America is the best bank for real estate loans. It offers loans starting at $25,000, and you can get lines of credit, term loans, commercial real estate loans, and SBA loans. Bottom Line When choosing a bank, real estate investors should find a provider with a great business checking option, outstanding lending products, and other business support services. Providers that don’t offer lending products, such as Stessa, instead have services geared toward the needs of real estate investors. Before choosing a business bank, decide which bank account and lending products you may need.

The best easy business loan providers should offer you a simple process to obtain funding for your business quickly. These loans typically have lenient credit requirements, making them available to even lower credit borrowers. In addition, companies that have been in operation for less than two years with lower annual revenue should be able to qualify for one of the best easy small business loans. While the loans available on this list are easy to apply for and obtain, they also come with higher interest rates, higher fees, and, sometimes, short repayment terms. These are the eight best easy business loan providers. Best Easy Business Loans At a Glance Fundbox: Best Overall Easy Business Loan for the Lowest Rates Why We Like Fundbox Thanks to the lowest starting interest rates and easy qualification requirements, is our choice for the best easy business loan. Its rates start as low as 4.66%, and it offers both lines of credit and term loans, although it’s the line of credit product the company heavily promotes on its website. Your business must be in operation for at least six months with at least $100,000 in minimum annual revenue. In addition, your company must be based in the United States and have a small business checking account. You must have at least a 600 personal credit score. You can get a line of credit of up to $150,000, with draws repaid over a 12-week or 24-week period. Term loans of up to $150,000 can be repaid weekly over either a 24-week or 52-week period. There’s no prepayment penalty, and you can set up your repayment plan with each draw against your line of credit. One drawback is the weekly repayment schedule, which can be challenging to business cash flow. You can begin the application process on Fundbox’s website or by calling toll-free. The company promises a quick credit decision and funding within one business day. National Funding: Best for Longer Loan Terms for Lower Credit Score Borrowers Why We Like National Funding is an excellent choice for an easy business loan for many reasons but specifically due to credit availability to lower credit score borrowers. It has been more willing to lend to lower credit borrowers than others on this list, including some providers that list a lower minimum credit score. In addition, you can get a loan of up to $500,000 for up to five years. The only standalone lender in this guide with a lower minimum credit score is LoanBuilder, and its loans max out at just 52 weeks. Meanwhile, Lendio is a marketplace, and poor credit borrowers will likely find worse terms than what National Funding will provide. It has an easy application process, quick decision and funding timeline, and early payoff discounts. Customers who pay off a working capital loan balance within the first 100 days receive a 7% discount on the total remaining balance. One drawback is potentially high annual percentage rates (APRs). Borrowers with strong credit profiles may want to consider Fundbox or Bluevine for better rates. National Funding allows you to apply through its website or a toll-free number. The application process involves just a one-page application and three months of bank statements, and a decision and funding are promised within 24 hours. Bluevine: Best Small Business Line of Credit Why We Like Bluevine not only has the best line of credit product of the providers listed here, but it’s our choice for the best small business line of credit on the market. You can get a line of credit of up to $250,000, with draws repaid over either a six- or 12-month term. Fundbox only slightly edges Bluevine in this guide due to its term loan product, slightly lower rates, and lower monthly minimum revenue requirements. Businesses need to be in business for just six months, with just $120,000 in annual revenue to qualify. Bluevine does have the highest minimum credit score of providers on this list at 625. If your business is organized as a limited liability company (LLC) or corporation, Bluevine won’t hard-pull your credit at any point in the process. If you’re organized as a sole proprietorship or general partnership, it will only hard-pull your credit after receiving and accepting an offer. In addition, it has an outstanding free business checking product that earns a strong interest yield. As such, it’s our top free business checking account. It allows you to apply through its website and even lets you connect your QuickBooks Online account directly as part of the application. Application takes less than 2 minutes, with approvals within 5 minutes. Lendio: Best for Shopping Multiple Loan Options at One Time Why We Like Lendio If you want to compare multiple loan offers with just one application, is an excellent option. It’s a marketplace with more than 75 lenders, and because there are so many available options, it’s hard to specify exact requirements, terms, and rates. However, in general, you’ll need at least $96,000 in annual revenue and a credit score of at least 600. Some lenders in its network will have more stringent requirements, and while some might qualify borrowers with even lower credit scores, borrowers with sub-600 credit scores will have very high rates and fees. Not only can you receive multiple loan offers with Lendio, but you can also get multiple types of financing. Lendio has providers that offer business lines of credit, short-term loans, and equipment loans that would be considered easy business loans. It has a 15-minute application on its website, or you can call toll-free to start the application process. FundThrough: Best for Invoice Factoring Why We Like FundThrough is our top invoice factoring company, offering two excellent invoice factoring products: Express Invoice Financing for funding amounts of $15,000 or less and Velocity Invoice Factoring, which has no stated maximum funding amount. It will depend on the size of the invoice and your company’s financial strength. The two programs are similar but have slight differences. Express Invoice Financing is a form of accounts receivable (A/R) financing, which has the customer pay you directly for the outstanding invoice. Then, you pay back FundThrough, our best A/R financing company, for the advance. Velocity Invoice Factoring is a true invoice factoring product, where the customer pays FundThrough for the invoice based on the original terms of the invoice. With invoice factoring, the customer directly interacts with FundThrough, while with A/R financing, the customer is unaware of the FundThrough advance. Regardless of your choice, you’ll need to be in business for at least six months with at least $120,000 in annual revenue to qualify. You’ll also need a personal credit score of at least 600. You can start an application through FundThrough’s website to see if you qualify or by reaching out via a toll-free phone number, online chat, or email. QuickBridge: Best for a Simple Application Process Why We Like QuickBridge is a great choice for an easy business loan thanks to its simple, quick application process. You can apply via a toll-free number or through its website in a matter of minutes, connect with a funding specialist, and have funds sent to your account within a day of approval. When applying, you need just your driver’s license and three bank statements. From a product standpoint, it’s very similar to National Funding. You can get loans of up to $500,000 for up to 24 months. Repayment can be made either daily or weekly. Interest rates are very competitive, starting at just 5%. National Funding edges QuickBridge slightly thanks to the former’s monthly repayment option and up to a five-year term. However, both are outstanding provider options if you’re looking for small business loans, working capital loans, unsecured business loans, and short-term business loans. QuickBridge promises fast credit decisions with flexible payment options to fit your business needs. OnDeck: Best for Borrowers Who Want Simple Repayment Terms Why We Like OnDeck is a great choice for easy business loans because of its simple repayment terms. Specifically, if you get a line of credit and have multiple draws against the line open simultaneously, those will be combined into one payment. This makes managing the repayment of those draws easier. The company offers two great products that can provide you with an easy business loan: a line of credit and a term loan. If you have a term loan, you can borrow another term loan once the original loan has been paid halfway down. In addition, OnDeck offers a prepayment benefit for borrowers who qualify. If you pay your term loan early, all the remaining interest can be waived. You’ll need a business checking account and a credit score of at least 600, with at least one year in business and at least $100,000 in minimum annual revenue. OnDeck will reject borrowers that don’t meet the credit score, time in business, and annual revenue requirements. Borrowers who don’t meet those requirements may want to consider Fundbox or National Funding. Another drawback to OnDeck is high APRs, with a minimum APR of 29.9%. Also, the average APR of OnDeck loans is 62.1%, so strong credit borrowers may find better rates elsewhere. Also, same-day funding is only available on term loans up to $100,000. You can apply for either lending product directly on OnDeck’s website, with funding within one business day. LoanBuilder: Best for Financing With Flexible Terms Why We Like LoanBuilder is a good option for an easy business loan because it has one of the lowest minimum annual revenue requirements among online lenders—$42,000—and a minimum time in business of nine months. However, with weekly payments and a maximum term of 52 weeks, it isn’t the best product for long-term or high-cost projects. In addition, there’s no benefit to paying the loan off early as the loan fees charged to the borrower at payoff are the same. One positive is the lack of origination fees and no prepayment penalty. There’s only a single, fixed fee for its loans. The company offers a configurator tool on its website, allowing you to see your estimated options upfront before proceeding. However, there’s a lack of information on the company’s website. While other providers on this list have terms and rates available, LoanBuilder’s site is largely empty. Although the terms listed here should be used as a guideline, those may vary depending on the credit and financial strength of the borrower. To apply, you need to complete a 5- to 10-minute questionnaire on its website to determine eligibility. Once eligible, you can compare estimated loan terms to see the financing costs. Funds can be delivered in as little as one business day. Alternatives to Easy Business Loans Easy business loans are a great choice for fast funding for immediate business needs. However, other loan types provide better rates and terms. If you don’t need funds quickly, consider one of the following loan types that will have lower interest rates and better repayment terms: Small business credit cards: Best used for small and medium business expenses. Many have 0% introductory rates, and you can earn cash back rewards. Small Business Administration (SBA) loan: Optimal for businesses with good credit and a solid business plan that don’t need funds quickly. can also help you with SBA loans for startups. Rollover for business startups (ROBS): Ideal for businesses with owners willing to invest retirement funds of $50,000 or more. Check out the website for more information on ROBS or to speak with a ROBS specialist. Before applying for a business loan, check out our guide on how to get a small business loan. How We Evaluated the Best Easy Business Loans When considering the best easy business loans, we compared the following criteria: Ease of loan application and repayment process Maximum loan amount Interest rates and estimated APR Repayment terms and schedule Collateral and guarantee requirements Funding speed Minimum credit score and time-in-business and annual revenue requirements Fees and any potential fee discounts Customer reviews Best Easy Business Loans Frequently Asked Questions (FAQs) Where is the easiest place to get a business loan? The easiest place to get a business loan is through an online lender. Online lenders tend to have more lenient requirements than traditional brick-and-mortar lenders, and funding can be received sometimes as quickly as the same business day. Fundbox is our choice for the best easy business loan provider. Are small business loans easy to get? Even though online business loan providers have more lenient terms and requirements, it doesn’t mean that small business loans are easy to get. Most small business loan providers require you to be in operation for at least six months and have at least $100,000 in annual revenue. This makes funding for startup businesses a challenge, which is why you may want to consider alternative types of financing for startups. Do business loans look at personal credit? The smaller and newer your business is, the more likely a business loan provider will want to look at your personal credit. Businesses that have been in operation for more than two years with established business credit history and finances will likely have a Dun & Bradstreet credit score. Once your business has its own credit score, you likely won’t have your personal credit checked. However, if you put personal finances into a business, such as a home equity line of credit or home equity loan, you’ll need to have your personal credit and finances checked to qualify. Bottom Line All of the loan providers in this guide can offer easy business loans to help fund your business. Many easy business loans come with high interest rates and fees, which could end up damaging your business cash flow. Before applying for an easy business loan, consult your financial advisor to determine the best course of action for your business. If you proceed, shop around and find the best easy business loan with the best terms and rates for your business.

Before your business can begin operating, it needs to be registered with state and local agencies. Before registering your business, you’ll have to choose a business name and obtain an employee identification number (EIN) from your state. While this process will register your business as a legal entity, there are other benefits as well, such as your company getting business approval from local agencies and ensuring the security of your intellectual property. We have a one-page checklist with the basic steps to register your business, although some may not be required depending on the regulations of the state where you operate. Check your local regulations for specific state-by-state instructions. Download our free How to Register a Business checklist. Once your business is registered, you’ll need a business checking account. offers a digital-only, interest-bearing business checking product. You’ll earn 1.5% APY on balances up to $100,000. Visit Bluevine for more information. Step 1: Prepare To Register Your Business When starting a business, you should first register your business. The first steps involve choosing a business name, setting up an address to receive important documents, and obtaining an EIN. Here’s the process you should follow to prepare to register your business: Choose a business name: If you plan on operating as a sole proprietor, your business name might just be your full name. Otherwise, you’ll have to file a doing business as (DBA) with the state. If you plan to incorporate your company, you should choose a name that properly describes your business. Consider web domain availability when picking a name. Select a location to receive important documents: You’ll need an address to receive essential registration documents from local and state government agencies. You’ll also need an address before opening bank accounts or applying for loans. Obtain an EIN: You can get an EIN through the IRS, which will be used in all your financial transactions. It’s free and can be obtained in minutes online or by fax or mail. Step 2: Choose Your Business Legal Entity & Open a Business Bank Account We recommend all businesses register as a legal entity, such as a limited liability company (LLC), S corporation (S-corp), or C corporation (C-corp). This protects your personal assets in case of legal action against the business. You can register in some states for as little as $50 while others charge up to $2,000. The chart below shows the LLC costs in each state. Before choosing an entity, consider the differences between the three entity types: LLC: LLCs are the most common legal entity chosen by business owners. It requires the least documentation and the least amount of yearly maintenance and is the most affordable type of entity. The LLC can elect S-corp status for tax purposes, saving small businesses thousands of dollars in taxes each year. S-corp: An S-corp is a federal tax designation to give tax breaks to small businesses. To become an S-corp, you must set up payroll, have fewer than 100 shareholders, and issue only one class of stock. The business doesn’t pay taxes at the corporate level. Additionally, unlike an LLC, business ownership can be passed easily without triggering an expensive tax event. C-corp: This entity type is typically used by larger companies or those seeking investments. You’re required to organize this way if you have more than 100 shareholders. The C-corp has unlimited growth potential because it raises money through selling business shares, and another advantage is that even after the owner leaves, the business still exists. The major drawback is that a C-corp is taxed twice at both the corporate and individual levels. Once you have a business name, an EIN, and are incorporated, you can open a business bank account.  is an excellent choice for a digital-only business checking account. You earn 1.5% interest on balances of $100,000 or less, which is why Bluevine is one of our best small business checking accounts. Every bank will have different requirements for opening an account, which can vary depending on how your business is organized. Check out our guide on how to open a business bank account for more details. Step 3: Register Your Business With the State Once you have a legal entity and are registered with the IRS, you need to register with your state. There are two ways you can register your business with the state: Do it yourself through the state’s website: You can register your business directly through your state’s official business website. Fees will vary, starting as low as $40, and it usually takes up to 30 days. If unsure of your state’s website, you can go to the Small Business Administration’s website and use a drop-down menu to select your state. Use an online legal service: If you don’t want the hassle of trying to register your business through your state’s website, you can use an online legal service. It will walk you through the process step-by-step, collecting and submitting the necessary information to the state. is a great option that will register your business as an LLC for free, plus state fees. Once you register your business through the state, there are two more things you should do. These may be concurrent with registering your business with the state: Choose a registered agent: A registered agent is someone you designate to represent your business and who the state will contact if there are legal actions against your business. They’re also responsible for re-registering the business each year. Typically this is someone in the business, or it could be an online legal service such as IncFile. Get your state taxpayer identification number: If you’re in a state that collects a state income tax, you’ll need to register for a state taxpayer identification number (STIN). If you’re a sole proprietor, you’ll need your social security number to register for this number. If you’re a legal business entity, then you’ll need your EIN. Visit your state’s official department of revenue for more information. Step 4: Get State Licenses & Local Permits Here are some of the licenses you may need depending on your business type: State professional licenses: These licenses are typically for businesses that may pose a public health risk. Each state may require different professions to obtain a professional license. Common licensed businesses include martial arts, cosmetology, physical therapists, and pawn shops. Visit your state and city’s official business license website for more information. Local licenses and permits: Local licenses vary by state. If you plan to open a physical location, you may need a local building inspection to ensure the facility's safety. If you plan on selling food, you’ll need health-code inspections. Live music venues also require specific local licenses. Home-based business license: In the last couple of years, the amount of people running businesses from home has skyrocketed due to the COVID-19 pandemic. According to IncFile, approximately 19M small businesses are home-based. Most home-based businesses won’t need licensing. However, if you have employees, have customers, or create products at home, you might need this license. Consult your state and local government for regulations. Step 5: Secure Your Intellectual Property While it isn’t required to start your business, you may want to register a trademark, copyright, or patent for your business. Here are the three types of intellectual property licensing: Register a trademark: This provides increased legal protection for a word, phrase, symbol, and design. It protects your business branding, keeping others from using it. You can register your trademark on your own from the United States Patent and Trademark Office (USPTO). However, you may want to use an affordable online service like instead. If you file a patent or use a professional service, a trademark costs anywhere from $225 to $2,000. Obtain a copyright: Every piece of content you create has an automatic copyright. You can register your creative work with the US Copyright Office for additional legal protection. If you ever need to file a copyright infringement, you first need to register it with the US Copyright Office. File for a patent: This keeps others from making, using, and selling your invention for a limited number of years. Filing a patent can cost anywhere from $1,500 to more than $15,000. It can be complicated, so it’s best to hire a patent attorney to assist you. Bottom Line Before your business can get started, you need to do the five steps in this guide to put your company in a position to succeed right away. If you follow this process while registering your business, you can stop potential future problems before they arise. This will keep your company legal from day one and ensure you can focus on running and growing your business. Be sure to download the checklist to help you navigate the steps needed to get your business off to a successful start.

The best accounts receivable (A/R) financing companies should be able to assist companies by advancing a large percentage of unpaid invoices back to the company, allowing them to cover short-term cash flow gaps. Once the customer pays the invoices, the loan is satisfied. All of the providers listed here offer a variety of terms. Some provide short-term loans, while others offer A/R lines of credit. Fees, terms, and qualifications will vary depending on the provider, the credit strength, and the financial viability of the business and its owners. Here are the five best accounts receivable financing companies: : Best overall terms for A/R financing for small businesses : Best for businesses that want the highest percentage of largest advances : Best A/R financing for startup businesses : Best accounts receivables line of credit : Best for shopping multiple loan offers in lending marketplace Best Accounts Receivable Financing Companies At a Glance See fullscreen table × FundThrough: Best Overall Terms for A/R Financing for Small Business ff   Why We Like FundThrough is our best accounts receivable financing company thanks to fast application and funding times combined with the highest advance rate on this list: 100%. It requires a minimum time in business of only three months, with no stated personal credit score minimums and typically no personal guarantee required. The drawback to Express Invoice Financing—its A/R financing product—is a limit of $15,000 in invoices financed. However, FundThrough also has an invoice factoring product called Velocity Invoice Factoring, and its only limit is the invoice size. You can receive funding as soon as 24 hours after approval, which is why FundThrough is also our best invoice factoring company. Visit FundThrough’s website for more information or to start your application and see if you qualify. You can also reach the provider via a toll-free phone number, an online chat, or email. First Commercial Credit: Best for Businesses That Want Highest Percentage of Largest Advances Why We Like First Commercial Credit For businesses with large invoices wanting most of it advanced to them, is an excellent choice. It will provide funding of up to $10 million with an advance rate of 97%. Of the providers that will go up to $10 million, it has the highest advance rate. Rates and terms are very competitive. There’s no minimum revenue requirement, but the company’s revenue numbers must support the advance request. Because there are no fees listed, you should check your financing contract to clarify any fees before signing the agreement. You cannot apply for funding through the First Commercial Credit website. Instead, call a toll-free number or fill out a form, and a representative will call you back. See First Commercial Credit’s website for more information. Crestmark: Best A/R Financing for Startup Businesses Why We Like Crestmark For startup businesses looking for accounts receivable financing, is an excellent option. It offers up to $10 million in funding, with up to a 90% advance rate. Payments can be flexible, and rate solutions are customized for each borrower. As your business grows and your credit profile strengthens, you can get better terms and rates with Crestmark. This provider touts competitive pricing with proposal turnaround within one day. However, closing the loan takes seven to 10 days, with funding within a day after closing. This is the slowest loan funding process on our list. Like First Commercial Credit, you cannot apply directly through Crestmark’s website. You can either call the provider toll-free or fill out a form to have it reach out to you. Head over to Crestmark’s website for more information. Universal Funding Corporation: Best Accounts Receivable Line of Credit Why We Like Universal Funding Corporation provides an invoice line of credit as part of its accounts receivable financing. This line of credit can range from $25,000 to $5 million with a 95% advance rate. It doesn’t require access to your private banking and accounting information. It offers accounts receivable financing and invoice factoring products that seem very similar. While there may be more fees with Universal Funding Corporation, the fact that fees are clearly stated allows the borrower to understand the actual credit costs. Rates are competitive, and funding can be received in as little as two days. To start the application process, go to Universal Funding Corporation’s website and fill out an information form. You can also call the company toll-free. Lendio: Best for Shopping Multiple Loan Offers in Lending Marketplace Why We Like Lendio If you’re looking to shop around for many accounts receivable financing companies instead of only one, is the best choice, as it has a marketplace of more than 75 lenders. You can get multiple offers with only one application and choose the A/R financing company with the best rates and terms. It’s the best choice for more established startups with high revenue and business owners with solid credit profiles. It also gives you access to other business loans, including working capital loans and lines of credit. However, its qualifications are generally higher as a 680 personal credit score is required. You must also be in business for at least two years and have $1 million or more in annual revenue. You can apply directly through Lendio’s website. Once approved, you can be funded in less than 24 hours. Head over to Lendio’s website to begin the application process. Who A/R Financing Is Best For Many types of businesses can benefit from accounts receivable financing, including: Business owners with low credit scores: Accounts receivable financing companies rely on the creditworthiness of a borrower’s customers and offer lower credit score requirements than some other lending options. Small businesses that invoice customers: Businesses must invoice customers to qualify, and A/R financing can shorten their collection period and provide access to working capital. Companies with slow-paying customers: If customers take too long to pay, A/R financing can be an inexpensive, short-term funding solution. Independent contractors who bill clients for large projects: Long projects require contractors to cover expenses until the project is complete or a customer pays the invoice. A/R financing allows your business faster access to the amounts you have invoiced. How We Evaluated the Best Accounts Receivable Financing Companies There are several factors we considered when choosing the best accounts receivable financing companies. They include: Funding amount available Advance rate Repayment terms Discount rate Expected APR Origination, maintenance, prepayment, and termination fees Application length and funding speed Funding requirements, including credit score, personal guarantee, time in business, and revenue requirements Before choosing an accounts receivable financing company, check out our guide on how to get a small business loan for general guidelines and requirements. Best Accounts Receivable Financing Companies Frequently Asked Questions (FAQs) How do accounts receivable loans work? Accounts receivable loans allow businesses to address short-term cash flow gaps by borrowing against their unpaid invoices. The lender typically collects the invoice on behalf of the business and uses the proceeds to repay the loan. Unlike invoice factoring, customers are largely unaware of the third-party financing company. What is an account receivable loan? Accounts receivable loans are lending products where providers will advance up to 100% of the unpaid invoice amount to a business to help them with short-term cash flow. When the invoice is paid, the loan is paid off. How do you borrow against accounts receivable? Unpaid invoices are leveraged as collateral to a financing company, which will advance up to 100% of the invoice to allow the company to cover short-term costs. The loan is paid off once the invoice is paid. Bottom Line For businesses looking to cover short-term cash flow gaps caused by unpaid invoices, accounts receivable financing can assist them with advances of up to 100% of the invoice amount. Each provider on this list is a good option for covering those potential cash flow issues. Compare terms, rates, and qualifications of multiple providers and choose the one that best fits your business needs.

The best banks for small business loans should offer a wide range of commercial loans or a narrow range of the best available loan products. In addition, they should have outstanding business support products, including business checking and credit card accounts, and merchant services, such as point-of-sale (POS) products and investment support. Not every bank included in this guide provides everything listed above. However, most offer full-service business banking products, and the ones that don’t, do have a specific lending product that’s so outstanding that it merits inclusion on this list. Here are the eight best banks for small business loans: : Best overall for variety of business loans and providing free business credit score : Best for long-term owner-occupied commercial real estate (CRE) loans : Best CRE multifamily lender with best business checking and credit cards : Best small business line of credit : Best CRE loans for multifamily properties : Best digital-only bank with full-service business lending : Best for smaller Small Business Administration (SBA) 7(a) loans : Best for SBA Express loans up to $25,000 Best Banks for Small Business Loans At a Glance See fullscreen table × Bank of America: Best Overall for Variety of Business Loans & Providing Free Business Credit Score is our best bank for small business loans, thanks to a wide variety of business loan products. In addition, as part of its business checking product, you can receive your Dun & Bradstreet business credit score for free. Business loans start at $25,000. Interest rates and loan terms vary with each loan product but starting interest rates of 4.75% are among the lowest on this list. In addition to Bank of America’s variety of loan products, it offers business credit cards and two outstanding business checking products. Monthly fees on the business checking products can be waived easily by meeting certain criteria. Bank of America offers other business services, such as savings, investments, and merchant services. It’s the best all-around traditional bank for your business needs. Visit Bank of America’s website for more information or stop by one of its more than 4,100 financial centers. U.S. Bank: Best for Long-term Owner-occupied CRE Loans is an excellent choice for a business owner looking for a long-term, owner-occupied CRE loan. With SBA 504 loans of up to $12.375 million for up to 25 years, you can purchase or build owner-user commercial real estate or refinance an existing loan. Other SBA loans are available for up to $5 million for up to 25 years. The bank also offers conventional commercial and investment property loans of up to $10 million with terms of either 5, 10, or 15 years with amortization of up to 25 years. You can also get a real estate secured line of credit. It even has great business checking options and business credit cards. Other business services include payment processing and cash management systems. The one drawback is U.S. Bank products are limited to the states listed below. If you do business in one of those states, U.S. Bank is an excellent choice. Visit the company’s website for more information. Chase: Best CRE Multifamily Lender With Best Business Checking and Credit Cards is known as one of the best multifamily commercial real estate lenders on the market. The combination of this with its outstanding business checking product and great business credit cards make Chase one of the best banks for small business loans. For 2021, Mortgage Bankers Association (MBA) listed JP Morgan Chase & Company as the second best commercial/multifamily mortgage lender in the nation behind Wells Fargo. Chase also offers a variety of other commercial loan products. What makes Chase stand out is its excellent selection of business credit cards, many of which offer cash back bonuses and other perks. What’s more, its business checking account is our leading small business checking account. Chase also offers other business services, including merchant services, fraud protection, and investment services. These are why Chase is our top-recommended bank for small businesses. You can visit Chase’s website for more information or stop by one of its 4,800 locations nationwide. Bluevine: Best Small Business Line of Credit While has just one loan type, its line of credit earns it a place on this list, as it offers the best small business line of credit on the market. You can get a line of credit of up to $250,000 at an interest rate as low as 4.8%. You have to be in business for at least six months, which is a much shorter length than other options in this buyer’s guide. It will file a blanket UCC filing and require a personal guarantee, but if approved, you can receive funding as soon as the same business day. In addition to its line of credit, it provides a great digital-only checking product that can earn you 1.5% APY on balances of $100,000 or less. Visit Bluevine’s website for more information or to apply. Wells Fargo: Best Commercial Real Estate Loans for Multifamily Properties has a more limited selection of loan products than other full-service banks on this list. However, its multifamily commercial real estate loan is the best in this guide. The MBA named Wells Fargo the top lender of commercial/multifamily mortgage loans in 2021. In addition to multifamily CRE loans, Wells Fargo offers lines of credit, SBA loans, and business credit cards. Loans start at $50,000 for CRE loans and go up to $11.5 million for SBA loans. Listed rates go as low as prime + 1.75% but will vary per loan product. You can borrow for up to 25 years on commercial real estate loans. The company doesn’t disclose minimums for time in business or annual revenue. The bank also has three different business checking products. There are merchant services and point-of-sale solutions available as well. Visit Wells Fargo’s website for more information. First Internet Bank: Best Digital-only Bank With Full-service Business Lending If you’re looking for a full-service bank with extensive loan products that are digital-only, is a great choice. It offers SBA loans, commercial real estate lending, commercial lending, public finance, and term loans. Lines of credit start at $100,000, while SBA loans max out at $5 million. Loan rates start at 4.75%, and terms can extend up to 25 years. Terms and rates vary per loan product. First Internet Bank doesn’t disclose minimums for time in business or annual revenue on its website. If you’re also looking for business checking, the institution provides both business and commercial checking products. It also has savings, money market accounts, and CDs. You can even get an HSA through FIB. As a digital-only bank, there are no physical locations to visit. However, if you’re interested in an online bank for your business lending needs, visit First Internet Bank’s website for more information. Huntington Bank: Best for Smaller SBA 7(a) Loans While doesn’t offer much information on its website regarding loan sizes, rates, and qualification requirements, it’s a lender that facilitates many SBA loans annually. It is the No. 2 SBA lender in 2021, with almost 3,000 SBA loans for approximately $600 million. As of Sept. 8, 2022, Huntington had issued more than 5,000 SBA loans in 2022, according to SBA.gov. Huntington seems to focus on the quantity of SBA loans rather than large SBA loan amounts. According to SBA Lenders, the average SBA loan given by Huntington was $204,755 in 2021. The minimum loan was $1,500, with the maximum being $5 million. In addition to SBA loans, Huntington offers business term and real estate loans, business lines of credit, dental and vet practice loans, and a business credit card. One drawback is it’s a regional bank. Your business must operate in one of the 11 states listed below to be eligible for accounts. Huntington offers four business checking options with waivable monthly fees. It also has treasury management and fraud tools and doesn’t charge returned deposit item fees on up to 25 occurrences per month. Visit Huntington’s website or stop by a branch location for more information. South End Capital: Best for SBA Express Loans up to $25,000 In addition to large commercial loans, no longer requires tax returns or financials on SBA express loans of up to $25,000, though larger loans will still require financials. So, for businesses looking for easy funding with smaller SBA express loans, it’s a great choice. It funds some of the largest loans on this list, with maximum loans of up to $75 million. Rates start as low as 5%, and loan terms go up to five years. Both of those will vary per loan product. In addition to SBA loans, South End Capital offers equipment, commercial real estate, term, and USDA loans. Unlike the other options in this guide, it doesn’t offer business checking. Visit South End Capital’s website for more information or to apply. How We Compared the Best Banks for Small Business Loans When comparing the best banks for small business loans, we considered the loan offerings provided by each bank and the other services offered. These services include business checking, business credit cards, and other business support services. We compared their loan products and the following criteria: Number of loan offerings Size of loans offered Loan qualifications required Time in business and minimum revenue requirements Loan rates and maximum terms How widely available the bank is Before applying for any loan, be sure to check out our guide on how to get a small business loan. Frequently Asked Questions Which bank is best for a business loan? Thanks to its wide range of business lending products and the ability to receive your business credit score for free with its checking product, Bank of America is the best bank for small business loans. What bank does the most SBA loans? Huntington Bank has issued the most SBA loans so far in 2022, with more than 5,000 loans approved, according to SBA.gov. Live Oak Bank has issued the most money in SBA loans in 2022, with more than $1.4 million approved. How do you get a business loan from a bank? To get a loan from a bank, you should follow these six steps listed in our how to get a small business loan guide: Determine what you need the funds for. Determine your eligibility. Determine your capacity to repay. Gather your information. Find the right lender. Submit your application. Bottom Line All of the banks listed provide either a wide range of loan product offerings or a limited selection of the best loan products on the market. These products should be readily available for well-qualified borrowers. In addition, except for South End Capital, all the banks listed offer outstanding business checking products and other business support services. Regardless of which bank you choose, you’re getting a great all-around bank that can help your business succeed. If you would rather shop around for loan products from multiple banks, is an excellent option. Its marketplace of more than 75 lenders will allow you to get multiple offers from just one application, which lets you choose the best rates and terms available. Visit Lendio’s website to apply.

A solo 401(k), also known as a one-participant 401(k) plan, is a retirement plan allowing self-employed individuals to contribute up to $61,000 per year before taxes, including $20,500 of employee contributions. The business owner contributes as both the employer and employee in this type of retirement plan. Setting up a solo 401(k) requires five steps, ranging from understanding how a solo 401(k) works to funding the account. First, you need to make sure you’re eligible for a solo 401(k), which requires an employer identification number (EIN). Then, choose a solo 401(k) provider, which will give you a plan adoption agreement and an application. Once those are completed, you can open your account. The last step is to set up your contribution amounts and choose your investment options. If you’re looking for an excellent digital-only 401(k) provider, is a great choice. ShareBuilder offers low-cost retirement plans, making it easy and affordable for businesses of all sizes to open an account. The company also offers other types of 401(k) plans in the event your company expands in the future. Visit ShareBuilder 401k’s website for more information. Step 1. Understand the Eligibility Requirements for a Solo 401(k) Because the IRS limits solo 401(k) plans to only one participant, they’re a good choice for self-employed individuals and small business owners with no full-time employees. They can cover just a business owner with no employees or that person and their spouse. Solo 401(k) plans require a plan administrator, also known as an investment provider, to help with regulatory paperwork. If you plan to hire employees in the future, a solo 401(k) plan can convert to allow full-time employees within the company’s 401(k) plan. Solo 401(k) Contribution Limits for 2022 * A business owner employed by a second company and participating in its 401(k) plan should note limits on elective deferrals are by person, not by plan. Consider the limit for all elective deferrals you make during a year. Step 2. Find a Solo 401(k) Provider The most critical step in the setup process is finding the right solo 401(k) provider. The best solo 401(k) providers should provide a simple, straightforward, affordable plan. You should choose a provider that can also support your business as it grows and its needs change. When choosing a solo 401(k) provider, you should consider these three factors: Costs: Choose a provider with manageable and competitive fees. Be sure to compare the fees of multiple providers to find the most affordable plan that matches your business needs. Level of management: Some providers will offer hands-on management for a monthly or annual fee, assisting you with regulatory and compliance filings. However, not all providers actively administer solo 401(k) plans. Consider the level of management needed from your provider before choosing. Investment flexibility: Choose a provider that gives you access to the investment options you want in alignment with your financial needs. If you already have an investment account or IRA plan, ask your current provider if they offer solo 401(k) plans. Otherwise, choose a provider that offers factors that align with your personal needs. Step 3. Complete Plan Documents & Disclosures After selecting a provider, you’ll receive a collection of documents called an “employer kit” or “employer application.” These documents will help you set up your plan. Documents that need to be completed for your provider include: Client agreement External transfer form Participant application and designation of beneficiary Establishing a qualified retirement plan (QRP) Section 408(b)(2) disclosure Rates and fees QRP amendment kit ERISA 404(c) plan information Summary cash balance form Privacy statement QRP basic plan document Adoption agreement This is the stage in the process when you’ll make initial investment choices. Those initial choices can be changed at any point in the future. You’ll receive disclosures and instructions on how to remain compliant. These disclosures will include information on the plan and the benefits of tax-free savings. In addition, you’ll receive information regarding items that would go on IRS Form 5500 if you have over $250,000 in your account or have additional plan participants. If you eventually convert your solo 401(k) to a traditional 401(k) with more participants, those participants will also receive the same disclosures from the plan administrator. The primary disclosures for a solo 401(k) plan include: General 401(k) disclosure: This IRS-provided disclosure informs employees on how employer-sponsored retirement plans work, especially from a tax benefit perspective Details about your plan: This is the specific information on your plan, including where accounts are being held and the available investment options Employee rights and responsibilities: Employee disclosure needs to include the timeline for employer contributions and any applicable employer match, eligibility information, and vesting schedules you want to use Step 4. Open an Account With Your Provider Once you have chosen a provider and have obtained all required documents and disclosures, you can open your solo 401(k) account. This account should be opened before your tax-filing deadline and following guidelines in your plan documents. While you’re allowed to set up a Solo 401(k) account after the year ends and make prior-year contributions similar to IRA funding, it’s best to set up a new account in the year that it’ll be effective and make your first contributions in the same year. IRS-mandated funding deadlines: Employee contributions―Roth, catch-up, or regular―must be made within the business tax year Employer contributions (profit share) can be made by the tax deadline for the previous year (usually April 15) Step 5. Make Contributions to Your Solo 401(k) Once the account is opened, it can be funded. Most providers accept checks, wire transfers, or automated clearing house (ACH) payments to fund the solo 401(k). You can fund the account monthly or in a lump-sum payment. The IRS allows you to contribute up to $20,500 from your salary if you’re younger than 50 years old. If you’re 50 or older, you can contribute up to $27,000). The second part comes from employer profit-sharing contributions of up to 25% of your net self-employment income. The IRS limit on compensation used to determine your contribution is $305,000 in 2022. Consult your tax advisor to develop an optimal strategy that’s IRS-compliant. Penalties for excessive contributions are applied in the year the contribution is made and when the money is distributed, so it’s essential to get your contribution correct. Once your account reaches $250,000 in assets, you’ll have new requirements, including filing IRS Form 5500. If you ever hire employees who become eligible for your plan, you’ll need to make adjustments to accommodate these new participants. Solo 401(k) Costs Because Solo 401(k) plans have one participant, there are few administration requirements. Some providers will help you with the required compliance and associated paperwork for a fee. Note that some providers don’t offer full-service management and will only provide you with the information needed for your tax filing and regulatory reporting. Keep this in mind when you’re shopping around for a provider. Most providers charge custody fees plus mutual fund expense ratios and commissions for trading individual stocks, bonds, or exchange-traded funds (ETFs). You may also pay fees per fund you use or other fees to an alternative provider if you invest in things like real estate. Sample Solo 401(k) Costs Solo 401(k) Pros & Cons Bottom Line A solo 401(k) plan is an excellent choice for a retirement plan for solo business owners with no full-time employees. The plan can cover just the business owner or the owner and their spouse. You can get an easy-to-administer retirement plan with higher contribution limits and lower fees than traditional IRAs. Finding the best solo 401(k) providers and setting up the plan correctly can be just as crucial to the growth of a new business as finding the best small business checking account or getting a small business loan.