Depending on your circumstances and needs, the best self-employed business loans will have either flexible qualifications with high approval rates or competitive interest rates and loan terms. These companies also tend to combine those characteristics with excellent customer service, given that self-employed individuals can have complex finances that tend to make it difficult to evaluate and explain the paperwork needed to render a loan decision.
When looking for the best self-employed business loan, it’s crucial to choose the one most suited to your needs, as different types of small business loans have varying rates, terms, and payment structures. I’ve researched a wide range of lenders and compiled six picks to finance your self-employed business for a variety of use cases.
- Lendio: Best for loan program variety
- Bluevine: Best small business line of credit
- National Funding: Best custom short-term loans
- Smarter Finance USA: Best for equipment financing
- Upstart: Best personal loans for business use
- U.S. Bank Business Triple Cash Rewards World Elite Mastercard®: Best for 0% introductory APR
Best self-employed business loans at a glance
Provider | Financing Type | Maximum Loan Amount | Estimated Starting Annual Percentage Rate (APR) | Maximum Repayment Term | Minimum Credit Score |
|---|---|---|---|---|---|
 | Multiple | Varies, but can be up to $5 million | Varies | Varies | Varies |
 | Line of credit | $250,000 | 7.8%+ | 12 months | 625 |
 | Term loan | $500,000 | 1.11x factor rate | 18 months | 600 |
 | Equipment financing | $1 million | 10%+ | 5 years | |
 | Unsecured personal loan | $50,000 | 7.4% to 35.99% | 5 years | None |
 Business Triple Cash Rewards World Elite Mastercard® | Credit card | Varies | 17.99% to 26.99% | N/A (revolving) | Varies |
Lendio: Best for loan program variety
| |
Rates & Terms | |
Type of Financing |
|
Loan Amount | Up to $5 million; varies by loan program |
Estimated APR | Varies |
Repayment Term | Varies |
Repayment Schedule | Varies |
Estimated Time from Application to Funding | As fast as 24 hours |
Qualifications | |
Credit Score | Generally 600, but may vary by program |
Time in Business | Generally 6 months, but may vary by program |
Annual Business Revenue | Generally $96,000, but may vary by program |
Why we like Lendio
I recommend Lendio for self-employed borrowers because of the combination of its customer service and wide range of loan program offerings. It is a business loan broker with over 75 lenders in its network, allowing it to offer nearly a dozen different lending programs.
If you choose to work with Lendio, you’ll be assigned a dedicated funding specialist who will pair you with the lender and loan program best suited to your needs. You’ll also get assistance and guidance throughout the loan process from start to finish.
A small downside with Lendio is that you may not know the exact qualification requirements until after you submit your application. With such a large network of lenders, each has its own unique eligibility criteria. However, this is mitigated by the fact that your chances of getting approved and matched with a lender can be significantly higher, compared to applying to a single captive lender on your own. Additionally, your funding specialist will be the one tasked with finding a lender where you’ll meet the minimum requirements.
Lendio has an online application that can typically be completed in 15 minutes or less. Doing so will have no negative impact on your credit score while still allowing you to see potential financing options. There is also no fee to apply, and no obligation to accept any loan offers.
Bluevine: Best small business line of credit
| |
Rates & Terms | |
Type of Financing | Small business line of credit |
Loan Amount | $5,000 to $250,000 |
Estimated APR | 7.8%+ |
Repayment Term | 3, 6, or 12 months |
Repayment Schedule | Weekly, monthly |
Estimated Time from Application to Funding | As fast as 24 hours |
Qualifications | |
Credit Score | 625 |
Time in Business | 12 months (6 months for 3-month repayment terms) |
Annual Business Revenue | $50,000 for a 3-month term, otherwise $120,000 |
Why we like Bluevine
Bluevine is my choice for self-employed borrowers seeking a line of credit, as it offers a great combination of flexible qualification requirements, competitive rates and fees, and the ability to issue decisions quickly. While self-employed borrowers generally have to endure a lengthy loan review process in order to get approved, Bluevine states that it can issue decisions in as little as five minutes.
One of Bluvine’s notable features is that even if you’re unable to qualify for its line of credit, you can still potentially be eligible for financing from one of its partners. You’ll be shown any offers you might be able to get following your initial lending decision. Financing options available through its partners can include credit lines and term loans.
I also like the fact that Bluevine recently expanded its product offering to now have a 3-month repayment plan in addition to its 6- and 12-month plans. The introduction of this shorter payment plan carries easier qualification requirements for things like time in business and business revenue.
Bluevine accepts online applications, something that you can complete in just a matter of minutes. Like many other providers in our guide, submitting an application will not negatively impact your credit score.
National Funding: Best custom short-term loans
| |
Rates & Terms | |
Type of Financing | Term loan |
Loan Amount | Up to $500,000 |
Estimated APR | Factor rates as low as 1.11x |
Repayment Term | Up to 18 months |
Repayment Schedule | Daily, weekly |
Estimated Time from Application to Funding | As fast as 24 hours |
Qualifications | |
Credit Score | 600 |
Time in Business | 6 months |
Annual Business Revenue | $250,000 |
Why we like National Funding
As a business owner, it can sometimes be difficult to predict your income or expense items. If this is the case, a custom payment plan can help alleviate any stress on your company from a cash flow perspective. National Funding can provide a wide range of repayment plans, and also has an established track record of providing excellent customer service, something that can help make the process of getting approved as a self-employed borrower with complex finances easier and less stressful.
With that being said, I do recommend National Funding only for well-qualified companies. While the minimum qualification requirements allow for lower credit scores and newer businesses, you’ll typically need to have compensating factors, such as strong revenue streams to be approved at competitive rates. A representative I spoke with at National Funding also stated that the majority of its clients are businesses that are already performing well financially, and are seeking funds primarily for investment, growth, and expansion.
National Funding also generally specializes in short-term loans. In fact, it incentivizes companies to pay off loans more quickly with early payoff discounts. Borrowers with a working capital loan can receive a 7% discount on the remaining balance if paid in full within 100 days, while those with an equipment loan can receive up to a 6% discount.
Smarter Finance USA: Best for equipment financing
 | |
Rates & Terms | |
Type of Financing | Equipment financing |
Loan Amount | $10,000 to $1 million |
Estimated APR | 10%+ |
Repayment Term | 2 to 5 years |
Repayment Schedule | Weekly, monthly, seasonal, deferred |
Estimated Time from Application to Funding | 2 to 4 days |
Qualifications | |
Credit Score | None, but 600 is recommended |
Time in Business | None |
Annual Business Revenue | None |
Why we like Smarter Finance USA
Smarter Finance USA specializes in equipment financing, and it was one of my picks for this guide because it offers competitive rates & terms, excellent customer service, and is one of few companies that has no minimum requirements for credit score, time in business, or annual business revenue.
With that said, I spoke with a representative at Smarter Finance who mentioned that it can be very difficult to secure approval with a credit score below 600 without several strong compensating factors, such as a large down payment or significant financial reserves.
Self-employed borrowers finding it difficult to get qualified due to the complexity of their finances should consider Smarter Finance USA, as it considers each application on a case-by-case basis. It’s also a broker with nearly 40 lenders in its network, something that can further boost your approval odds. With Smarter Finance USA, you can finance various types of equipment, including vehicles, trucks, and heavy equipment such as excavators, cranes, bulldozers, and more.
The application process can be started online and can be completed in under 10 minutes. You’ll then be contacted by a member of the team to discuss any required paperwork, your needs as a business, and then finally your options for financing should you be approved.
Upstart: Best personal loans for business use
| |
Rates & Terms | |
Type of Financing | Unsecured personal loan |
Loan Amount | $1,000 to $50,000 |
Estimated APR | 7.4% to 35.99% |
Repayment Term | 3 or 5 years |
Repayment Schedule | Monthly |
Estimated Time from Application to Funding | As fast as 24 hours |
Qualifications | |
Credit Score | None |
Income |
|
Why we like Upstart
It can sometimes be difficult to qualify for a loan as a self-employed borrower because lenders often have stricter guidelines and requirements. If you’re unable to get qualified, an alternative you can consider is a personal loan for business use—and Upstart is one of the best options for a personal loan.
In addition to easy qualification requirements, Upstart also offers fast funding speeds. This is something that can be increasingly rare with lenders, given the complex nature of most self-employed individuals and the time needed to evaluate the relevant paperwork. However, Upstart states that most borrowers are instantly approved, with 99% of personal funds being sent just one business day after signing. Despite fast funding speeds and flexible eligibility requirements, it also states that it can offer 38% lower rates compared to other traditional lending models.
Applying online with Upstart carries no fees and will have no impact on your credit score. You can also check your rate in under five minutes, and your credit score may be impacted only after you accept a formal loan offer from the lender.
U.S. Bank Business Triple Cash Rewards World Elite Mastercard®: Best for 0% introductory APR
U.S. Bank Triple Cash Rewards Visa® Business Card
BEST FOR:
Those wanting to earn up to 5% cash back on selected spending categories
- Earn $750 in cash back. Just spend $6000 on the Account Owner's card in the first 180 days of opening your account.
- Earn 3% cash back on eligible purchases at gas stations and EV charging stations (transactions of $200 or less)*, office supply stores, cell phone service providers and restaurants (*excludes discount stores/supercenters and wholesale clubs).
- 1% cash back on all other eligible net purchases.
- Earn 5% cash back on prepaid hotels and car rentals booked directly in the Rewards Center.
- No limit on total cash back earned.
- Redeem Cash Rewards right away or save them for later. Cash Rewards do not expire as long as the account remains active.
- Earn an annual $100 statement credit for recurring software subscription expenses such as FreshBooks or QuickBooks.
- Terms and conditions apply.
Pros
- 0% purchase APR for 12 months
- $0 annual fee
- U.S. Bank ExtendPay® Plan feature
Cons
- No 0% APR on balance transfers
- Charges balance transfer and foreign transaction fees
- MasterRental car rental collision damage waiver: When you rent a car using your U.S. Bank credit card, you’re covered in case of accident or theft on all rentals made worldwide. Coverage is primary, which means you won’t need to use your personal auto insurance or accept the insurance offered by the rental agency. Coverage is capped at $50,000.
- Purchase assurance: U.S. Bank may repair or reimburse for items purchased with your U.S. Bank business credit card that are damaged or stolen within 90 days of purchase. Coverage is limited to $1,000 per loss, up to $25,000 per year, per account. Lost items and items left out of reach that others can see are not covered.
- Extended warranty protection: U.S. Bank will double the manufacturer’s warranty up to an additional one year from the expiration of warranties of five years or less. An item with a six-month warranty would be backed for an additional six months, for example. The issuer will replace the item or reimburse you up to the amount charged on your U.S. Bank card up to $10,000.
- U.S. Bank ExtendPay® Plan: Pay off your eligible balance over time with this feature without interest—just pay a small monthly fee
- Earn $750 in cash back. Just spend $6000 on the Account Owner's card in the first 180 days of opening your account.
- Earn 3% cash back on eligible purchases at gas stations and EV charging stations (transactions of $200 or less)*, office supply stores, cell phone service providers and restaurants (*excludes discount stores/supercenters and wholesale clubs).
- 1% cash back on all other eligible net purchases.
- Earn 5% cash back on prepaid hotels and car rentals booked directly in the Rewards Center.
- No limit on total cash back earned.
- Redeem Cash Rewards right away or save them for later. Cash Rewards do not expire as long as the account remains active.
- Earn an annual $100 statement credit for recurring software subscription expenses such as FreshBooks or QuickBooks.
- Terms and conditions apply.
Pros
- 0% purchase APR for 12 months
- $0 annual fee
- U.S. Bank ExtendPay® Plan feature
Cons
- No 0% APR on balance transfers
- Charges balance transfer and foreign transaction fees
- MasterRental car rental collision damage waiver: When you rent a car using your U.S. Bank credit card, you’re covered in case of accident or theft on all rentals made worldwide. Coverage is primary, which means you won’t need to use your personal auto insurance or accept the insurance offered by the rental agency. Coverage is capped at $50,000.
- Purchase assurance: U.S. Bank may repair or reimburse for items purchased with your U.S. Bank business credit card that are damaged or stolen within 90 days of purchase. Coverage is limited to $1,000 per loss, up to $25,000 per year, per account. Lost items and items left out of reach that others can see are not covered.
- Extended warranty protection: U.S. Bank will double the manufacturer’s warranty up to an additional one year from the expiration of warranties of five years or less. An item with a six-month warranty would be backed for an additional six months, for example. The issuer will replace the item or reimburse you up to the amount charged on your U.S. Bank card up to $10,000.
- U.S. Bank ExtendPay® Plan: Pay off your eligible balance over time with this feature without interest—just pay a small monthly fee
Why we like the U.S. Bank Business Triple Cash Rewards World Elite Mastercard®
A small business credit card is an excellent tool for everyday purchases, and this card was my pick because it currently offers a 0% introductory APR on purchases for the first 12 billing cycles. It also allows you to earn cash back on purchases, which you can use to reduce the effective cost of your business expenses.
Other benefits offered by this card include a $750 welcome offer after spending at least $6,000 in eligible purchases within the first 180 days from account opening. A $100 statement credit is also available for recurring software subscription expenses, such as FreshBooks or QuickBooks. I encourage you to check out our full U.S. Bank Triple Case Rewards World Elite Mastercard review for more details on the perks you can get.
Finally, a notable feature of this card is that it’s possible to qualify using just your personal credit and finances. For instance, when I was approved for this card, my business at the time generated a minimal amount of revenue. I also had a thin business credit profile. Instead, my ability to repay debt was based on that of my personal income and credit.
How I chose the best self-employed business loans
In selecting the best self-employed business loans, I considered the following factors where applicable:
- Expertise, underwriting flexibility, or other benefits in evaluating self-employed borrowers
- Loan programs offered
- Rates, fees, terms, and funding speeds
- Approval rates
- Customer service
- Reviews and customer ratings
Key considerations for self-employed borrowers
Compared to wage-earners, self-employed individuals can face a unique set of challenges when it comes to getting a small business loan. This can show in the form of higher rates and fees, lower approval rates, and extended funding times. To reduce the likelihood of these outcomes, self-employed individuals should consider the following:
It may be tempting to deduct as many items as possible to reduce your taxable income. However, be aware that doing so can impact the amount of qualifying income a lender may consider in evaluating your ability to repay a loan.
Startups and companies with less than two years’ time in business have a statistically high failure rate, and may be subject to higher rates and fees to reflect this added level of risk. Once you have been in business for several years, you should be able to more easily qualify for a lender’s best rates and terms.
Lenders look for a pattern of stable income. Income that has significantly declined and shows no signs of improving may render you ineligible for a loan. Similarly, constant fluctuations in income may have lenders concerned about how it will impact your ability to repay debt.
Having strong compensating factors can improve your chances of getting approved. It can also increase the likelihood of being offered more favorable rates and terms. Examples of compensating factors can include the use of a large down payment, showing proof of financial reserves in a business bank account, and using business assets as collateral for a loan.
Alternatives to self-employed business loans
If you’re unable to get a small business loan but still need funding, below are several options you can consider:
- Rollover for business startups (ROBS): A ROBS is a way for you to get access to your retirement funds tax- and penalty-free. This requires you to follow various tax rules and regulations. Given the complexity of taxes, we recommend using the services of our best ROBS providers, as doing this incorrectly could result in fines and penalties being assessed.
- Business grants: Grants do not require any repayment to be made, although they can be difficult to find and secure. Additionally, grants typically have a lengthy review process, which makes it less suitable for businesses needing funding quickly. Our list of the best small business grants can provide you with a list of organizations that issue this type of funding.
- Friends/family: Funding from friends and family, can come in the form of a loan, gift, or equity in your business. Although this can strain relationships if the business venture does not go well, it can have its upsides such as the ability to get funding without paying as many fees to a comparable lender. I recommend considering our tips for getting funding from friends and family.
Frequently asked questions (FAQs)
Yes. However, you’ll need to be able to provide documentation that supports your company’s ability to repay debt. This commonly includes tax returns, cash flow statements, profit and loss statements, and balance sheets.
If you own your company, most lenders will consider you to be self-employed. This can include individuals who are independent contractors, gig workers, or are sole proprietors.
It can be more difficult to obtain a loan as a self-employed borrower. This is because self-employed individuals generally have more complicated tax circumstances—something that requires lenders to perform a deeper dive into a company’s credit and finances to determine the stability of the industry and the company’s revenue streams.
Bottom line
The lenders I’ve selected in this guide can alleviate many of the common challenges associated with getting a loan as a self-employed borrower. These lenders have a combination of fast funding speeds, excellent customer service, competitive rates, and much more. Regardless of your circumstances, the providers listed here should be able to have a solution suitable for you.
