6 Best Personal Loans for Business Funding in 2023

Upstart is our pick as the best overall provider for its competitive rates and easy requirements. Compared to other lenders on our list, it can provide the lowest rates and is the only one without a minimum credit score requirement.

While it can work with almost any credit score, it does look at certain aspects of your credit history in evaluating your application. You must not have any current delinquent accounts and public records or bankruptcies within the past 12 months. You must also have fewer than six hard inquiries on your credit report, although inquiries related to student loans, auto loans, and mortgages can be excluded.

If you meet the eligibility criteria, you can get up to $50,000 in funding, with rates as low as 4.6%. There are no prepayment penalties, so you can also choose to pay off your loan more quickly to save on interest charges.

One potential downside is that Upstart has limited options for the length of your loan. Your only two options will be a three- or five-year term. This may also depend on your DTI ratio. For most states, this provider allows up to a 50% DTI. However, a 45% maximum will apply if you live in Connecticut, Maryland, New York, or Vermont.

With Upstart, you can check your rate online in less than 5 minutes with no impact to your credit score. This provider can also offer fast funding as it states that 99% of personal loan funds are disbursed within one business day of signing your loan agreement.

To get approved with LightStream, you’ll need to have good to excellent credit. It’s recommended that you have a score of 680 or higher, which is the highest in our guide. However, borrowers who qualify can get competitive rates, loan terms, and fast funding speeds.

However, LightStream considers more than just your credit score. It will also review things like how long you’ve had credit, available assets, and how much debt you carry. Having strengths in multiple areas can help offset a lower score and improve your chances of getting approved.

LightStream’s personal loans carry no fees. There are no origination fees and prepayment penalties, so you can save interest by paying off the loan early. The provider also has a virtually paperless application process that it says can be done from even a smartphone or tablet.

To get the lowest advertised rate of 8.49%, you’ll need excellent credit and sign up for automatic payments. Applications can be completed on the LightStream website, with funds that can be made available as soon as the same day that you apply.

LendingClub is a P2P lender, meaning its loans are funded by investors. Rates start as low as 9.57%, and you can get up to $40,000 in funds to be repaid over three or five years. This provider charges no prepayment penalties, so you have the option to pay off the loan more quickly if neither of those two loan terms is ideal for you.

One downside is that the provider’s funding speed is not as quick as other lenders listed here. In some cases, funding can take up to seven or more days. It also does not publicly share the minimum credit score requirement, so you may not know what you can qualify for until after you apply. However, it has consistently received positive reviews from customers, so it’s still an excellent option.

You can submit an application from the LendingClub website in a matter of minutes. You can then choose a loan offer depending on the combination of rates and payment options you prefer. If additional documents are needed for verification, you’ll be notified. Otherwise, funds can be sent directly to you or your creditors if you are approved.

SoFi offers the largest amount of financing, making it a good option if you need a large loan amount with easy credit requirements. By working with this provider, you can get up to $100,000 in financing with a minimum credit score requirement of 660.

One unique aspect of getting a loan through SoFi is its unemployment protection program. This provides the flexibility to modify your loan payments if you become unemployed. The program can also provide assistance in finding a new job. To be eligible, you must be a SoFi member in good standing for at least nine months and be unemployed through no fault of your own.

Rates typically range from 10% to 30%, although SoFi states that the average APR is around 14.84%. Rate reductions of 0.25% are available for members who sign up for automatic payments.

Other qualification requirements include earning an annual income of at least $45,000, although the exact figure can vary depending on your DTI ratio. If you’re having difficulty qualifying on your own, SoFi accepts co-signers who live with you.

To see what rate you can get, visit the SoFi website. You can view rates and loan options in under one minute with no impact on your credit score and no obligation to accept a loan offer.

If you’re looking for low monthly payments, Discover is a good option. This is because it has the longest repayment term and some of the lowest rates on our list.

Rates can start as low as 6.99% for well-qualified borrowers. You can select repayment terms from three to seven years on a loan amount of up to $40,000. To be eligible, it’s recommended that you have a credit score of at least 660. You’ll also need to have an annual household income of $25,000.

It’s important to note, however, that meeting the minimum criteria does not guarantee an approval. Additionally, this provider’s lowest rates will require you to exceed the minimum requirements. If your DTI is high or you have a lower credit score, you could see rates as high as 24.99%.

A standout feature with Discover is the fact that it offers a 30-day guarantee. If you decide you no longer need the loan within that time frame, you can return the funds you received, and the provider will cancel the loan with no interest charges.

To apply, you can visit the Discover website. If approved, you can receive funds as soon as the next business day.

If you need funds fast, Rocket Loans can offer same-day funding. While other providers in our guide also offer fast funding speeds, Rocket Loans has the lowest credit score requirement, making it our pick as the best provider for borrowers seeking fast funding.

In general, you’ll need a credit score of at least 640 to be eligible for financing. The minimum income you’ll need is dependent on how much debt you’re carrying, as Rocket Loans considers your DTI as a key factor in whether you will get approved. If you are eligible for financing, you can get up to $45,000 in funds with a repayment term of either 36 or 60 months.

To learn more, you can visit the Rocket Loans website, where you can also get prequalified in under one minute. Prequalifying with this provider allows you to see your available loan options without impacting your credit score.

Yes. Most personal loans have few restrictions on how you may use the funds. Out of the providers we’ve selected in our guide, the most restrictive uses typically prohibit funds to be used for illegal activity or educational purposes.

The answer to this question depends on your goals and business circumstances. Personal loans rely more heavily on your personal qualifications rather than that of your business, so they can be easier to get. However, business loans tend to have more flexible loan terms such as rates, repayment terms, and loan amounts.

Personal loans can be more expensive than business loans. However, it can vary on a case-by-case basis. We recommend shopping rates with multiple lenders and considering different types of loans to find the most cost-effective solution for your needs.