Personal business loans allow you to get a loan based on your personal credit and finances, with proceeds going towards your business. These unsecured loans are a good option if you are unable to qualify for a business loan. We evaluated loan amounts, costs, and terms to determine the best personal loan for business needs.
Top 10 Personal Loans for Business Purposes 2019
| Personal Loan Option | Best For |
|---|---|
| LightStream | (Best Overall) Those needing up to $100,000 with terms up to 12 years |
| SoFi | Business owners needing up to $100,000 with longer terms than most options |
| Marcus by Goldman Sachs | Those wanting a lender connected with a reputable financial institution |
| FreedomPlus | Those wanting a lender that provides exceptional customer service |
| LendingClub | Business owners that want an online lender that they can grow with |
| Upstart | Businesses run by recent college graduates seeking up to $50,000 |
| Prosper | Business owners wanting to borrow from a P2P lender |
| Traditional Lenders | Borrowers wanting to build a banking relationship that can grow with their business |
When to Use a Personal Loan for Business
It can sometimes be difficult to get a business loan for startup, especially if your business isn’t generating significant annual revenues or can’t meet the time in business requirements for most lenders. Personal loans for business may be an option if your business can’t qualify for a loan on its own.
A personal business loan is a loan made to you as an individual, based on your personal credit score and qualifications (and reported on your personal credit report). The proceeds from that loan can then be used to fund your business.
A personal loan for business may be the right choice if:
- You own a startup business: If you’re just starting your business, it may not be established enough to provide business financials to support a business loan application. Likewise, your business likely doesn’t have its own credit profile yet. Using a personal business loan to grow your startup business is a viable option.
- Your business revenues are not sufficient to qualify for a business loan: Many small business lenders require a minimum amount of annual business revenues to qualify for a small business loan. If your business is not yet generating enough revenues to qualify, a personal loan may be a better option.
If you choose to use a personal loan for business, remember it is important to keep your personal finances separate from your business finances. This is not only for tax and accounting purposes, but also for establishing your business’ financial health separately from your personal credit.
How We Evaluated Personal Loans for Small Businesses
When evaluating the best personal loans for small businesses, our primary focus was on the costs and repayment terms available. We compared each lender based on how much they could lend, how much the loan would cost you, what repayment terms are available, and what credit score qualifications are required.
The criteria we used to evaluate the best personal loans for small businesses include:
- Loan amount: The amount of financing your business needs, and the amount a lender is able to lend, can be a significant deciding factor when selecting a lender for your personal business loan. Personal business loans are typically available in amounts up to $100,000.
- Costs: The costs associated with personal loans for business include not only the interest rates charged, but also any fees associated with the financing. In general, APRs for personal loans for business can range from 4.5% to 30% or more.
- Repayment terms: The personal business loan you select may be partially driven by the length of time you need to repay the debt. Businesses seeking larger funding amounts often require a more lengthy repayment term than those borrowing smaller amounts. Repayment terms for personal business loans vary by lender and range from one to 12 years.
- Qualifications: The primary qualification factor considered was the lender’s personal credit score requirement, which typically ranges from 600 to 680. All lenders in this arena are going to want to see a debt-to-income ratio of 40% or less, making that less of a determining factor for qualification than credit score.
Based on these evaluation factors, LightStream is our choice for the best personal loan for small businesses. LightStream offers some of the lowest interest rates, from 4.49% to 17.49%, and has one of the highest maximum loan amounts of $100,000. Additionally, with LightStream, there are no additional fees, and repayment terms can extend up to 12 years.
LightStream: Overall Best Personal Loan for Business
LightStream is a great choice for a personal business loan. With loan amounts available from $5,000 to $100,000 at APRs ranging from 4.49% to 17.49%, LightStream offers the widest range of loan amounts and some of the lowest interest rates of the lenders that we reviewed. Additionally, loan repayment terms with LightStream range from two years to 12 years.
Costs of a Personal Loan for Business With LightStream
LightStream offers personal loans for business at APRs ranging from 4.49% to 17.49%, but these rates can be reduced by 0.5% if you elect automatic payments. LightStream does not charge an origination fee or a prepayment penalty for paying your loan off before its maturity date. In fact, LightStream does not charge any fees at all on personal business loans.
The rates and fees you can expect with a personal business loan from LightStream are:
- APR: 4.49% to 17.49% (0.5% rate reduction if you use autopay, equaling 3.99% to 16.99%)
- Origination fee: None
- Prepayment penalty: None
- Other fees: None
While some lenders, like LendingClub, charge fees for loan origination or payment by check, LightStream has no additional fees associated with its personal loans for business. Additionally, LightStream does not charge any penalties for prepayment, making it advantageous if you choose to pay your loan off early.
Terms & Qualifications for a Personal Loan for Business With LightStream
LightStream offers unsecured personal business loans in amounts ranging from $5,000 to $100,000. Repayment terms for a personal small business loan from LightStream can extend anywhere from two to 12 years. If you have a personal credit score of at least 660, you may qualify, and if approved, you can receive funding in as little as one business day.
The terms and qualifications you can expect with a personal business loan from LightStream are:
- Loan amount: $5,000 to $100,000
- Repayment term: Two years to 12 years
- Minimum credit score: 660 (check your score for free)
- Funding speed: As soon as one business day
LightStream offers the widest range of repayment terms of any of the lenders on our list, allowing terms ranging from two to 12 years (you select the term you want when applying). Comparatively, SoFi allows the second widest range, with terms from two to seven years. Additionally, LightStream’s maximum loan amount of $100,000 is one of the highest we reviewed, and its funding speed is quicker than any other lender on our list.
What a Personal Business Loan From LightStream Is Missing
One downside to getting a loan from LightStream is that the company only provides personal loans at this time. If you are interested in building a financial relationship with a lender that can later offer you a small business loan, you may want to consider another lender, like Citibank or Wells Fargo.
What Users Think About Personal Business Loans With LightStream
Web reviews from LightStream customers showed that most are generally happy with the company. Positive reviews indicate that funding was fast and applying was easy. Critical reviewers shared that credit qualifications were higher than advertised and that customers with a credit score of 700 are more likely to get funded. LightStream (a division of SunTrust Bank) has an A+ rating with the Better Business Bureau. To read more about what customers think of the company, visit out LightStream review page.
How to Apply for a Personal Business Loan With LightStream
LightStream offers personal business loans in amounts ranging from $5,000 to $100,000 and at competitive interest rates (4.49% to 17.49% APR). You can select the payment term (from two years to 12 years) that best suits your needs. If you have a personal credit score of at least 660, you may be eligible. The online application process takes less than 10 minutes, with funding in as soon as one business day.
SoFi: Best Personal Business Loan for Longer Terms
For businesses seeking longer repayment terms (up to seven years), SoFi provides small business owners with personal business loans in amounts ranging from $5,000 to $100,000 at interest rates from 5.99% to 16.99%. If you have a credit score of at least 680, you may be eligible. If approved, funds will be deposited in your account in as few as three business days.
Costs of a Personal Loan for Business With SoFi
With a personal loan for business from SoFi, you can expect an interest rate ranging from 5.99% to 16.99% APR. SoFi does not charge an origination fee on its personal loans, nor does it charge a penalty for early repayment. Since there is no prepayment penalty, you can repay your loan early, save money on accrued interest, and not be charged any additional fees.
The rates and fees you can expect with a personal business loan from SoFi are:
- APR: 5.99% to 16.99%
- Origination fee: None
- Prepayment penalty: None
- Other fees: None
Like LightStream, SoFi does not charge any additional fees on its personal business loans. The only cost of this type of financing is the interest charged, and SoFi’s interest rates are nearly identical to the rates offered by LightStream.
Terms & Qualifications for a Personal Loan for Business With SoFi
SoFi offers personal business loans in amounts ranging from $5,000 to $100,000, with repayment terms ranging from two to seven years. To be eligible for a SoFi personal loan for business, you need to have a personal credit score of at least 680. If approved for a loan, you can receive funding within three business days.
The terms and qualifications you can expect with a personal business loan from SoFi are:
- Loan amount: $5,000 to $100,000
- Repayment term: Two to seven years
- Minimum credit score: 680 (check your score for free)
- Funding speed: Within three days
While both require good credit scores, SoFi has a slightly higher minimum credit score requirement than LightStream—680 compared to LightStream’s 660 requirement—making qualification slightly more difficult for potential borrowers. However, of the personal business loan lenders that we reviewed, SoFi has one of the longest repayment terms available at seven years (second only to LightStream’s maximum loan term of 12 years). Unlike many small business loans, there are no additional requirements to meet for longer repayment terms.
What a Personal Business Loan From SoFi Is Missing
One drawback to borrowing from SoFi is that it does not offer small business loans. If you want to use a personal loan for business to foster a financial relationship with a lender that can evolve into a business relationship, you may want to consider a traditional bank like U.S. Bank or Citibank. However, SoFi has a variety of personal finance tools available, from mortgages to personal deposit accounts.
What Users Think About Personal Business Loans With SoFi
We reviewed user reviews from around the web, and found that SoFi’s reviews were extremely mixed. Positive reviews were focused on the ease of applying and the speed of funding. Several SoFi reviewers stated they would recommend the lender to others. Critical reviews were largely from potential customers who were denied funding and were upset that a hard credit pull was performed. To learn more about what SoFi customers think, you can read our SoFi reviews page.
How to Apply for a Personal Business Loan With SoFi
SoFi provides personal business loans in amounts ranging from $5,000 to $100,000, with interest rates ranging from 5.99% to 16.99%. If your personal credit score is at least 680, you may be eligible for a personal loan for business through SoFi. You can apply online in a matter of minutes, and receive your loan funds within three business days.
Marcus by Goldman Sachs: Best Personal Business Loan for Businesses With Limited Needs
Marcus by Goldman Sachs offers personal loans for business in amounts up to $40,000 with interest rates ranging from 5.99% to 28.99%. Repayment terms range from three years to six years. Marcus does not charge any additional fees on personal business loans. If approved for a loan, you can expect to receive the funds within three days
Costs of a Personal Loan for Business With Marcus by Goldman Sachs
A personal loan for business from Marcus will have an interest rate ranging from 5.99% to 28.99%. Marcus does not charge any origination fees, prepayment penalties, or other loan fees.
The rates and fees you can anticipate with a personal loan for business with Marcus are:
- APR: 5.99% to 28.99%
- Origination fee: None
- Prepayment penalty: None
- Other fees: None
Like LightStream and SoFi, a personal business loan from Marcus by Goldman Sachs does not have any origination fees or prepayment penalties. However, the interest rates Marcus charges on personal business loans are generally higher than those offered by these two lenders. The highest rates on a loan from Marcus are nearly 10% higher than either LightStream or SoFi.
Terms & Qualifications for a Personal Loan for Business With Marcus by Goldman Sachs
With a personal business loan from Marcus, you can get repayment terms ranging from three to six years. Marcus offers loans of up to $40,000. While there is no specific credit score requirement for a personal business loan from Marcus, borrowers should expect to have a credit score of 660 or greater. If approved, you can receive funding within three days.
The terms and qualifications you can expect with a personal business loan from Marcus by Goldman Sachs are:
- Loan amount: Up to $40,000
- Repayment term: Three to six years
- Minimum credit score: No specific requirement, but generally greater than 660 (check your score for free)
- Funding speed: Within three days
The maximum loan amount of $40,000 that Marcus offers is significantly lower than the $100,000 maximum loan amount offered by LightStream and SoFi. However, it is on par with the other online lenders on our list that offer similar maximum loan amounts. Similar to LightStream and SoFi, there are no additional requirements to meet for longer term loans.
What a Personal Business Loan From Marcus by Goldman Sachs Is Missing
Borrowers needing a loan for more than $40,000, or funding sooner than three days, may be disappointed with a personal business loan from Marcus. LightStream can fund loans up to $100,000 in as quickly as one day, making it a better option for borrowers needing higher loan amounts or faster funding.
What Users Think About Personal Business Loans With Marcus by Goldman Sachs
After reading through numerous reviews, we have determined that Marcus by Goldman Sachs has a positive reputation with its customers. Customers who gave positive reviews were impressed by the simple process and the interest rates received. Critical reviews came from borrowers upset with underwriting practices that resulted in loan denial. Marcus by Goldman Sachs has an A+ rating with the Better Business Bureau. To learn more about what customers think, visit out Marcus by Goldman Sachs reviews page.
How to Apply for a Personal Business Loan With Marcus by Goldman Sachs
Marcus by Goldman Sachs provides personal loans for business in amounts up to $40,000 at interest rates ranging from 5.99% to 28.99%. Loan terms range from three to six years. If you have a credit score above 660, you may be eligible for a loan from Marcus by Goldman Sachs. You can apply online in minutes and, if approved, receive funding within three business days.
FreedomPlus: Best Personal Business Loan for Customer Service
FreedomPlus customers rave about the company’s exceptional customer service. With FreedomPlus, you can get a personal business loan in amounts from $7,500 to $40,000. Interest rates range from 5.99% to 16.99% APR, and repayment terms from two to five years. FreedomPlus charges a loan origination fee of 0% to 5%, but there are no other loan fees. Applying is easy, and if approved, you can receive funding within 48 hours.
Costs of a Personal Loan for Business With FreedomPlus
FreedomPlus personal business loans have interest rates comparable to other providers that we reviewed, with interest rates ranging from 5.99% to 16.99% APR. Unlike some of the others, FreedomPlus charges an origination fee on its personal loans for business in amounts ranging from 0% to 5% of the amount borrowed. However, it does not charge prepayment penalties or other loan fees.
The rates and fees you can expect with a personal loan for business from FreedomPlus are:
- APR: 5.99% to 16.99%
- Origination fee: 0% to 5%
- Prepayment penalty: None
- Other fees: None
While the lowest APR offered by FreedomPlus is the same as that of Marcus by Goldman Sachs, its maximum APR of 16.99% is well below the APR of 28.99% offered by Marcus. Unlike Marcus and SoFi, which do not have any origination fees, FreedomPlus does charge an origination fee of 0% to 5%. However, keep in mind that APR accounts for interest rates and all fees associated with the loan, so there’s really very little difference between these lenders in terms of cost.
Terms & Qualifications for a Personal Loan for Business With FreedomPlus
FreedomPlus offers personal loans for business in amounts ranging from $7,500 to $40,000. Repayment terms on these loans range from two years to five years. If you have a personal credit score of 650 or greater, you may qualify. If approved, you can receive your loan funds in as few as 48 hours.
The terms and qualifications you can anticipate with a personal business loan from FreedomPlus are:
- Loan amount: $7,500 to $40,000
- Repayment term: Two to five years
- Minimum credit score: 650 (check your score for free)
- Funding speed: Within 48 hours
With a minimum borrowing requirement of $7,500, FreedomPlus is not able to fund personal business loan amounts as small as other lenders on our list. Upstart, for example, has a minimum loan requirement of $1,000, making smaller amounts easier to obtain.
What a Personal Business Loan From FreedomPlus Is Missing
The origination fee of 0% to 5% that FreedomPlus charges on its personal loans for business may be a dissuading factor for some borrowers. There are lenders that offer similar loan terms, like LightStream and SoFi, without charging any additional loan fees. However, keep in mind that APR accounts for not only interest, but also loan fees. So while there is an origination fee, the overall APRs for these loans are very similar.
What Users Think About Personal Business Loans With FreedomPlus
FreedomPlus customers love FreedomPlus. It was difficult to find reviews that weren’t singing their praises. Customers loved the speed and efficiency of the company, as well as the friendly and helpful customer service. While some customers were disappointed with the interest rates they received, they were still happy with the level of care that they received from the company. FreedomPlus has an A+ rating with the Better Business Bureau.
How to Apply for a Personal Business Loan With FreedomPlus
If you are looking for a lender with outstanding customer service, FreedomPlus is highly rated by its customers. With personal business loans available from $7,500 to $40,000 at interest rates starting as low as 5.99% and loan terms of two to five years, FreedomPlus could be the answer for many businesses. You can apply online in minutes and receive funding within 48 hours.
LendingClub: Best Personal Business Loan for Growing Businesses
If you are looking for a lender that can grow with your business, LendingClub provides personal loans for business in amounts ranging from $1,000 to $40,000, as well as small business loans. Interest rates on personal loans are comparable to other lenders, and range from 6.95% to 35.89% APR. Repayment terms can be either three years or five years. LendingClub charges a loan origination fee of 1% to 6%. The application process is simple and can be completed entirely online.
Costs of a Personal Loan for Business With LendingClub
A personal loan for business from LendingClub will have an interest rate ranging from 6.95% to 35.89%. LendingClub charges a loan origination fee equal to 1% to 6% of the loan amount. Additionally, if you make your payment by check, you can expect to pay a check processing fee of $7 per month.
The standard rates and fees you can expect with a personal loan for business from LendingClub are:
- APR: 6.95% to 35.89%
- Origination fee: 1% to 6%
- Prepayment penalty: None
- Other fees: Check processing fee of $7 (no fee for ACH payments) and late payment fees of $15 or 5% of unpaid payment, whichever is greater
Unlike other lenders, such as LightStream and Marcus by Goldman Sachs, that do not charge fees on their personal business loans, LendingClub charges multiple fees. Additionally, while LightStream offers its customers a reduced interest rate for using autopay, LendingClub takes a different approach and charges an additional fee to the customer if their payment is made by check.
Terms & Qualifications for a Personal Loan for Business With LendingClub
Personal business loans are available from LendingClub in amounts ranging from $1,000 to $40,000. Repayment terms can be set at either three years or five years. LendingClub requires a personal credit score of at least 600 to be eligible. If approved for a loan, you can receive funding within five to seven days.
The typical terms and qualifications that you can anticipate with a personal business loan from LendingClub are:
- Loan amount: $1,000 to $40,000
- Repayment term: Three years or five years
- Minimum credit score: 600 (check your score for free)
- Funding speed: Five to seven days
The loan amount range offered by LendingClub is comparable to that offered by others, specifically Prosper and Upstart, which have very similar lending limits. While some lenders, like SoFi, offer loan terms in a range from two to seven years, LendingClub only offers two repayment term options: three years and five years. Like the other lenders on our list, there are no additional qualification requirements to meet in order to get a longer repayment term.
Additional Products & Services Offered by LendingClub
In addition to personal loans that can be used for business, LendingClub (a peer-to-peer lender) also offers small business loans in amounts ranging from $5,000 to $300,000. As such, as your business grows and establishes stable revenues, you may be able to apply for a small business loan from LendingClub in the future.
What a Personal Business Loan From LendingClub Is Missing
With a funding speed of five to seven days, LendingClub is days slower than other online personal business loan lenders in providing you loan funds. Small businesses that need faster funding may prefer another lender, like Upstart, which can provide funding as soon as the next business day.
What Users Think About Personal Business Loans With LendingClub
Customer reviews around the web are mixed with regard to LendingClub. Many people say they have had a great experience with the company and customer service has been very helpful. Others report the exact opposite and tell tales of a troubled application process and poor customer service. Overall, LendingClub has an A rating with the Better Business Bureau. To find out what our readers think, you can read our LendingClub reviews.
How to Apply for a Personal Business Loan With LendingClub
LendingClub offers personal loans for business in amounts ranging from $1,000 to $40,000 at interest rates ranging from 6.95% to 35.89% APR. Repayment terms of three years or five years are available. If you have a personal credit score of at least 600, you may be eligible. You can apply online in minutes, and if approved, receive funding within five to seven days.
Upstart: Best Personal Business Loan for Recent Graduates
A good loan option for recent college graduates, Upstart looks at your potential for earning rather than your current income when making lending decisions. Upstart provides personal loans for business ranging from $1,000 to $50,000 at rates of 7.54% to 35.99%. Repayment terms can be either three years or five years. Upstart does not charge an origination fee or any other additional fees in association with its personal business loans. You can apply online and receive funding as soon as the next business day.
Costs of a Personal Loan for Business With Upstart
With a personal loan for business from Upstart, you can expect an interest rate ranging from 7.54% to 35.99% APR. Upstart does not charge an origination fee, any penalties for prepayment, or any additional fees on its personal business loans.
The costs you can expect when you receive a personal business loan with Upstart are:
- APR: 7.54% to 35.99%
- Origination fee: None
- Prepayment penalty: None
- Other fees: None
The interest rates on personal business loans from Upstart are similar to the rates that you can get from LendingClub or Prosper. However, unlike LendingClub and Prosper, Upstart does not charge origination fees.
Terms & Qualifications for a Personal Loan for Business With Upstart
You can get a personal business loan from Upstart in amounts ranging from $1,000 to $50,000. Repayment terms can be either three years or five years. Upstart prides itself on looking beyond personal your credit score, and looking at your potential when it approves your loan. So while the minimum credit score requirement of 620 is part of the evaluation, Upstart will request information about your education to determine your eligibility.
The terms and qualifications for a personal business loan with Upstart are:
- Loan amount: $1,000 to $50,000
- Repayment term: Three years or five years
- Minimum credit score: 620 (check your score for free)
- Funding speed: Next business day
Upstart’s terms and qualifications are very similar to LendingClub, although Upstart’s maximum loan amount of $50,000 is slightly greater than LendingClub’s limit of $40,000. Both companies offer repayment terms of three years or five years. However, Upstart is able to provide funding within one day, which is much faster than LendingClub, where funding can take five to seven days.
What a Personal Business Loan From Upstart Is Missing
With Upstart, you are limited by the repayment term options; your repayment term will be either three years or five years. Businesses needing longer repayment terms would be better served by a lender like LightStream, which offers repayment terms of up to 12 years. Additionally, Upstart only offers personal loans for businesses. If you are looking to build a relationship with a lender that can grow with your business, LendingClub or a traditional bank would be a better selection.
What Users Think About Personal Business Loans With Upstart
Negative reviews for Upstart are virtually nonexistent, and overall, Upstart customers rave about the company. Customers are astonished by how fast, and easy, the loan application and approval process were, and how attentive the company’s customer service is. Upstart has an A+ rating with the Better Business Bureau.
How to Apply for a Personal Business Loan With Upstart
Upstart offers personal loans for business in amounts up to $50,000. Interest rates range from 7.54% to 35.99% APR, with repayment terms of three or five years. If you have a credit score of at least 620, you can apply online in minutes. If approved, you can receive funding as soon as the next business day.
Prosper: Best Personal Business Loan From a Peer-to-Peer Lender
Prosper is a front-runner in the peer-to-peer lending arena, providing loans that are backed by individual investors. These personal loans for business are offered in amounts ranging from $2,000 to $40,000. Repayment terms are either three years or five years, and interest rates range from 6.95% to 35.99%. Prosper charges an origination fee of 2.4% to 5% of the loan amount, as well as a $5 check processing fee if you elect to pay by check. You can apply online and receive funding within three days.
Costs of a Personal Loan for Business With Prosper
Personal business loans from Prosper have interest rates that range from 6.95% to 35.99% APR. Prosper charges a loan origination fee equal to 2.4% to 5% of the loan amount. Additionally, if you choose to make your loan payment by check rather than ACH, you will pay a $5 per month check processing fee.
The rates and fees associated with a personal business loan from Prosper are:
- APR: 6.95% to 35.99%
- Origination fee: 2.4% to 5%
- Prepayment penalty: None
- Check processing fee: $5 or 5% of the payment amount, whichever is less (no fee for ACH payment)
- Late payment fee: $15 or 5% of the payment amount, whichever is greater
The rates and fees for a personal business loan with Prosper are very similar to the rates and fees charged by LendingClub. Like LendingClub, Prosper also charges its customers a fee if they make their loan payment by check.
Terms & Qualifications for a Personal Loan for Business With Prosper
With Prosper, you can get a three- or five-year loan in amounts ranging from $2,000 to $40,000. A credit score of at least 640 is required to be eligible. If you are approved for a personal loan for business from Prosper, you can receive funding in as few as three business days.
The terms and qualifications you can expect with a personal business loan from Prosper are:
- Loan amount: $2,000 to $40,000
- Repayment term: Three years or five years
- Minimum credit score: 640 (check your score for free)
- Funding speed: Within three days
The loan amounts and repayment terms with a personal loan for business from Prosper closely match the amounts and terms that are available from LendingClub. However, Prosper can provide the funds within three days, whereas a loan from LendingClub can take five to seven days. Unlike with many business loans, there are no additional qualification requirements to meet for the longer repayment term with Prosper.
What a Personal Business Loan From Prosper Is Missing
Unlike some of the other providers on our list that do not charge any fees on personal business loans, Prosper charges a loan origination fee as well as a check processing fee on payments made by check. This may dissuade borrowers who prefer to write monthly checks for their business expenses. If you would prefer a lender that does not charge you for processing your payment, you may prefer LightStream or SoFi for your personal business loan.
What Users Think About Personal Business Loans With Prosper
Customer reviews from around the web are mixed for Prosper; customers either love the company or they hate it. Of the negative reviews, many are from people who were denied loans, and the remainder feel that their interest rates are too high. The customers who gave positive reviews of the company enjoyed the ease of the process, and mentioned they recommended Prosper to their friends. Prosper has an A+ rating with the Better Business Bureau.
How to Apply for a Personal Business Loan With Prosper
Prosper offers personal loans for business in amounts up to $40,000 with repayment terms of three or five years. Interest rates range from 6.95% to 35.99% APR. Prosper accepts credit scores as low as 640. Applying is simple and can be completed online in just a few minutes.
Citibank: Best Personal Business Loan for Existing Citibank Clients
If you are a Citibank customer, or want to begin building a banking relationship with Citibank, this lender offers personal business loans in amounts from $2,000 to $50,000. Interest rates range from 7.99% to 17.99% APR, with repayment terms of one to five years. For amounts under $30,000, you can apply online, and receive funding in five to seven days.
Personal Business Loan Costs, Terms & Qualifications From Citibank
Citibank offers personal business loans in amounts ranging from $2,000 to $50,000. For amounts under $30,000 you can apply online, while loan amounts above $30,000 will require that you visit a branch location to complete the application process. Citibank does not charge a loan origination fee, and interest rates range from 7.99% to 17.99% APR.
The costs, terms, and qualifications that you can expect from a personal business loan from Citibank are:
- APR: 7.99% to 17.99%
- Origination fee: None
- Prepayment penalty: None
- Loan amount: $2,000 to $50,000 (loans above $30,000 require applying in branch)
- Repayment term: One to five years
- Minimum credit score: 680 (check your score for free)
- Funding speed: Five to seven days
Of the three traditional lenders on our list, the loan amounts available from Citibank fall in the midrange of U.S. Bank’s $25,000 maximum loan amount and Wells Fargo’s $100,000 maximum loan amount. Interest rates for all three of the traditional lenders are comparable. However, compared to the online lenders like Upstart, which can provide funding as soon as the next business day, a personal loan from Citibank can take up to seven days to fund.
Additional Products & Services Offered by Citibank
Citibank offers a full array of personal and business loans as well as personal and business deposit accounts. If you are interested in a financial institution that can grow with your business needs, Citibank has the capacity to do just that.
What a Personal Business Loan From Citibank Is Missing
While Citibank can make loans in all 50 states, loan amounts above $30,000 require that you visit a branch. Unfortunately, Citibank doesn’t have branches located in all 50 states, which could make this requirement problematic. If you are seeking a personal business loan from a traditional lender over $30,000 and are unable to visit a Citibank branch, you may want to consider a personal loan through Wells Fargo, which can lend up to $100,000 through an online application.
What Users Think About Personal Business Loans With Citibank
Reviews of Citibank from around the web are heavily mixed. Negative reviews were very specific and mostly pertained to the company’s credit card line and individual customer issues, citing that Citibank was slow to reverse unauthorized transactions. Positive reviews of the company cited that in branch staff was friendly, customer service was helpful, and that they enjoyed the bank’s international presence.
How to Apply for a Personal Business Loan With Citibank
Citibank offers personal business loans in amounts ranging from $2,000 to $50,000 at interest rates ranging from 7.99% to 17.99%. For amounts under $30,000, you can complete a simple online application and receive funding within five to seven days. For larger amounts, you can visit a branch location to complete an application.
Wells Fargo: Best Personal Business Loan for Fast Funding
Wells Fargo provides personal business loans up to $100,000 as soon as the next business day. Interest rates are competitive and range from 7.49% to 24.49%, with repayment terms ranging from one to five years. Wells Fargo does not charge a loan origination fee on its personal business loan. You can complete your loan application online.
Personal Business Loan Costs, Terms & Qualifications From Wells Fargo
Wells Fargo offers personal loans for business in amounts ranging from $3,000 to $100,000, with repayment terms of one to five years. A personal business loan from Wells Fargo will have an interest rate ranging from 7.49% to 24.49%. Wells Fargo does not charge an origination fee or prepayment penalty on personal business loans.
The costs, terms, and qualifications that you can expect from a personal business loan from Wells Fargo are:
- APR: 7.49% to 24.49%
- Origination fee: None
- Prepayment penalty: None
- Loan amount: $3,000 to $100,000
- Repayment term: One to five years
- Minimum credit score: 680 (check your score for free)
- Funding speed: Next business day
Of the three traditional banks that we have reviewed here, Wells Fargo has the widest range of potential funding amounts, providing loans ranging from $3,000 to $100,000. Citibank offers the second widest range, offering loans from $2,000 to $50,000.
Additional Products & Services Offered by Wells Fargo
Wells Fargo is a national lender and offers a full range of personal and business financial products. If you need a business credit card, a line of credit, or an SBA loan, Wells Fargo can help you with all of those financing needs. Additionally, Wells Fargo was the top SBA lender in 2018.
What a Personal Business Loan From Wells Fargo Is Missing
Wells Fargo has a wider range of possible APRs for its personal business loans, meaning that a loan from Wells Fargo could result in a higher cost of capital than a loan from either U.S. Bank or Citibank. However, it is also the only traditional lender on our list that can fund amounts over $50,000. You may be able to get a lower interest rate through LightStream, our best overall lender, which also offers loans up to $100,000 but has a lower maximum interest rate.
What Users Think About Personal Business Loans With Wells Fargo
Based on customer reviews from around the internet, Wells Fargo’s reputation is mixed among its customers. Some borrowers enjoy the company’s national footprint, the low-interest rates offered, and the ease of accessing funds. Others are concerned with past business scandals and are unhappy with their customer service experience. Wells Fargo currently has no rating with the Better Business Bureau.
How to Apply for a Personal Business Loan With Wells Fargo
Wells Fargo provides personal business loans in amounts ranging from $3,000 to $100,000, with interest rates ranging from 7.49% to 24.49%. Repayment terms are available from one to five years. You can begin the application process online, though the bank may request that you provide additional information to support your application. Once approved, you can receive funding as soon as the next business day.
U.S. Bank: Best Personal Business Loan for Customer Discounts
U.S. Bank provides personal business loans in amounts up to $25,000 to customers who have had a deposit account with the bank for at least 120 days. Interest rates range from 7.49% to 17.99% APR, and repayment terms are available from one to four years. Platinum, Gold, and Silver U.S. Bank customers receive discounted interest rates. You can apply online, and if approved, receive funds within five business days.
Personal Business Loan Costs, Terms & Qualifications From U.S. Bank
To receive a personal business loan from U.S. Bank, you will need to be a bank customer and have a deposit account for at least 120 days prior to application. U.S. Bank offers up to $25,000 in funding at interest rates ranging from 7.49% to 17.99% APR, with repayment terms of one to four years. If you are a Platinum, Gold, or Silver customer with U.S. Bank, you may receive additional interest rate discounts.
The costs, terms, and qualifications you can expect from a personal business loan from U.S. Bank are:
- APR: 7.49% to 17.99%
- Origination fee: None
- Prepayment penalty: 1% prepayment penalty if less than 12 months
- Loan amount: Up to $25,000
- Repayment term: One to four years
- Minimum credit score: 680 (check your score for free)
- Funding speed: Within five days
Like Citibank, U.S. Bank requires that you have a deposit account with the bank prior to being eligible for a loan. However, U.S. Bank is the only bank on our list that offers additional discounts to existing customers. If you are already a U.S. Bank customer with a Platinum, Gold, or Silver account, this could be beneficial.
Additional Products & Services Offered by U.S. Bank
U.S. Bank offers a full array of personal and business loans as well as personal and business deposit accounts. If you are interested in a financial institution that can grow with your business needs, U.S. Bank has the capacity to meet all of your financial needs.
What a Personal Business Loan From U.S. Bank Is Missing
U.S. Bank’s requirement that the account must have been opened at least 120 days prior to loan application may be a challenge for businesses needing fast funding. Businesses looking for a personal business loan from a traditional bank may prefer Citibank or Wells Fargo if they are not already U.S. Bank customers.
What Users Think About Personal Business Loans With U.S. Bank
We thoroughly searched the web and were unable to find reviews directly related to personal loans from U.S. Bank. There are a multitude of reviews about the bank’s credit cards and deposit accounts that range from people giving high ratings with regard to ease of use to others detailing negative experiences with customer service and expensive bank fees. U.S. Bank has a B+ rating with the Better Business Bureau.
How to Apply for a Personal Business Loan With U.S. Bank
U.S. Bank offers personal loans for business in amounts up to $25,000, with interest rates ranging from 7.49% to 17.99% APR. Repayment terms are offered from one to four years. You can easily apply online for a personal business loan and receive funding within five business days.
Alternatives to Personal Loans for Business
If a personal business loan doesn’t seem to be the right answer to your small business financing needs, there are other alternatives. For smaller business expenses, a personal or small business credit card may be a quick solution. For larger business expenses, online small business loans, SBA loans, angel investors, or a rollover for business startups can help you obtain the funding that you need.
Top Personal Business Loan Alternatives
| Alternative | Best For |
|---|---|
| Personal Credit Card for Business | Entrepreneurs willing to keep diligent business vs personal expense records |
| Small Business Credit Card | Businesses with small and immediate financing needs |
| Rollover for Business Startups (ROBS) | Those willing to use retirement savings to fund their business |
| SBA Startup Loan | Businesses needing larger funding amounts and repayment terms of ten years or more |
| Angel Investor | Startup businesses that are willing to give up equity stake |
Some alternatives to a personal business loan are:
Personal Credit Card for Business
If you are unsure about taking on a personal loan to fund your business needs, another option is to use your personal credit cards for business purposes. This allows you to utilize your existing credit card to cover small immediate business expenses. However, keep in mind that it is important to keep diligent records of business expenses, and to keep your personal and business finances separate.
Small Business Credit Card
If you need less than $10,000 to fund your current business needs, using a small business credit card can be a relatively cost-effective way to finance your smaller business expenses. Many have introductory periods that offer 0% APR and valuable cash back or rewards programs. These rewards can be beneficial for your business if you use credit cards regularly. Having access to a business credit card can be a quick source of funds for your small business.
Rollover for Business Startups (ROBS)
A rollover for business startups (ROBS) allows you to utilize funds from your retirement account to provide funding for your small business. You can use a rollover for business startups without paying any early withdrawal penalties or taxes on the funds used from your retirement account. If you have retirement savings you are willing to invest in your business, you may want to contact a ROBS provider.
SBA Startup Loan
Small Business Administration (SBA) startup loans are a good choice for businesses in the early stages of development that need funds to get their business up and running. Small business loans from the SBA can be used for working capital, to purchase inventory and supplies, to finance fixtures and equipment, or to purchase real estate. Additionally, SBA startup loan funds can be used for initial seed money to kick-start a business.
Angel Investor
If your business is still in the startup stage and seeking funding opportunities, you may want to consider seeking out an angel investment firm. Angel investors are individual investors who provide funding in exchange for an equity stake in your business. Because they are fronting their own personal money, an angel investor will want to be confident in your ability to succeed as a business owner as well as in your business’ projected growth.
Bottom Line
Utilizing a personal loan for business can help you get the funding you need to get your business off the ground, or to provide working capital to an existing business. If you choose this method of funding your business, it is important to keep detailed records to maintain separate personal and business accounting. A personal business loan can be helpful as you establish your business and begin building your business reputation and credit.
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