Financing

The best companies for equipment financing with bad credit will have low or no requirements for a credit score. They should also provide flexible loan terms and financing for a wide range of equipment, from heavy machinery to furniture. Note that when applying for equipment financing with bad credit, expect to receive higher interest rates. However, you can qualify for competitive rates depending on your down payment, business revenue, time in business, and type of equipment being financed. Here are the seven best companies for equipment financing with bad credit: : Best overall for businesses with bad credit : Best for startups : Best for businesses with low credit scores : Best for quick financing : Best for long-term financing : Best for smaller financing needs : Best for large financing needs Best Companies for Equipment Financing With Bad Credit at a Glance *No minimum credit score requirement with six months of business history and at least $120,000 in annual revenue. Business revenue requirement is waived with a credit score of 650-plus. Smarter Finance USA: Best Overall for Businesses With Bad Credit eLease: Best for Startups National Business Capital: Best for Businesses With Low Credit Scores Balboa Capital: Best for Quick Financing SBG Funding: Best for Long-Term Financing National Funding: Best for Smaller Financing Needs First Capital Business Finance: Best for Large Financing Needs How We Evaluated the Best Companies for Equipment Financing With Bad Credit In determining the best companies for equipment financing with bad credit, we considered the following criteria: Transparency of rates and fees on the company’s website Quality and quantity of educational content provided Minimum credit score, time in business, and revenue requirements Interest rates and estimated APRs Maximum loan amounts offered Loan terms and length of repayment Speed of loan approval and funding Customer reviews Alternatives To Equipment Financing If you can’t get approved for equipment financing or want to find a more affordable type of financing, here are some alternatives to consider: Invoice factoring: Best for businesses awaiting payment from customers but needing cash quickly. can help you with this type of financing and is rated as our best accounts receivable financing company because of its fast funding times and high advance rates. Merchant cash advance (MCA): Good for businesses that cannot qualify for any other type of financing but have a high volume of credit card receipts. As an online marketplace with more than 75 lenders in its network, can help with this and many other types of financing. Rollover for business startups (ROBS): Best for business owners who cannot qualify for other types of financing but have at least $50,000 in retirement accounts. As one of our best overall ROBS providers, can walk you through the process while remaining fully compliant with IRS requirements. Frequently Asked Questions (FAQs) Can I get equipment financing with bad credit? Yes, you can qualify for financing with bad credit if you can show other strengths in your loan application. You can do this by agreeing to a large down payment, showing that your business is profitable, or setting aside cash to be used as a security deposit. Financing equipment that holds its value very well can also improve the terms of a loan approval. Where can I get equipment financing with bad credit? You can get equipment financing with bad credit from banks and online lenders. Companies that review applications on a case-by-case basis and have a large marketplace of lenders are best for improving your chances of being approved. What rates will I qualify for? With bad credit, you can expect to receive rates at 15% or higher. However, the rate you can get will depend on several other items, such as your time in business, type of equipment being financed, down payment amount, and business revenue. With so many variables, shop multiple lenders to ensure you’re getting a competitive rate. Bottom Line Many companies specialize in providing business owners with bad credit with equipment financing. These loans will come with higher interest rates and fees, but you can keep costs down if you can show you have a strong business. Having documentation that proves your business has an excellent track record of being profitable—or is willing to place a large down payment—will improve your chances of being approved at a competitive rate. Some lenders review loans on a case-by-case basis, so it’s important to shop multiple lenders to get the best rate possible.

Equipment loans are issued by financial institutions and allow business owners to finance the purchase of equipment needed to run their companies. Typically, they have a fixed interest rate, requiring periodic payments that are amortized over three to 10 years and can be used to purchase vehicles, machinery, furniture, and computers, among other things. Once the loan is paid off, full ownership transfers to you, and you can keep the equipment. That’s different from some other forms of financing such as equipment leasing, which require you to give the equipment back to the leasing company after the financing term has ended. We recommend as one of the best overall lenders for equipment loans. It offers financing options for startups with low credit scores and has low down payment requirements. Who Should Consider an Equipment Loan As a business owner, an equipment loan can help you finance new equipment for your company, regardless of how much cash you may have. This can be a great idea if you want to obtain equipment that holds its value and can be used long after the loan has been paid. You need to make a large purchase: The interest rates and fees associated with equipment loans typically make them best for large purchases. For smaller purchases, you can consider alternatives such as small business credit cards and business lines of credit. You don’t have cash to buy equipment: If your business meets this scenario, an equipment loan can provide you with the funds you need. Proceeds from the loan can then be used to replace items that have broken down, upgrade equipment, or add to an existing setup to increase your company’s capacity. You have enough cash but don’t want to spend it: By using an equipment loan to obtain items needed for your company, you won’t have to deplete your cash reserves and can instead use it for other purposes. You can afford the monthly payments for the equipment loan: Make sure you can afford the payments for the entire length of the equipment loan. Although interest rates for these loans tend to be affordable, missing payments gives the lender the right to take away the equipment if they have filed a UCC lien. You know how the new equipment will help your business: Buying new equipment can be a big investment of time and money, so you’ll need to be confident in how it’ll add value to your business. You’re purchasing equipment with a long useful life: Since an equipment loan allows you to own and keep the items you’re buying, it can be especially useful in purchasing items that have a long life span because you’ll be able to continue using the equipment even after the loan is paid off. How Equipment Loans Work Although the process may vary slightly depending on the lender, here are the steps involved in getting an equipment loan. Step 1: Select a Provider First, you’ll need to select a company that offers equipment loans. In addition to our list of the best equipment loans for a startup business, you can also check with regional banks, credit unions, and online lenders. You should shop multiple lenders to find the one that offers the best rates, fees, and loan terms for your needs. You can also consider things like the lender’s user reviews and ratings, as this can be a good indicator of what your experience will be like. Interest rates for equipment loans are usually between 5% and 15%, with fees being around 5% of the purchase price. However, these can vary depending on things like your credit, your business revenue, your down payment, and the type of equipment being purchased. Step 2: Submit a Loan Application Once you’ve picked a lender, you’ll need to submit a loan application that provides some basic information about who you are, how long you’ve been in business, how much the business earns, the equipment you’re looking to buy, and the type of loan you’re seeking. Step 3: Provide Documentation to the Lender Once your application has been submitted, the lender will review your credit scores and request documentation for your business finances. In some instances, the company may also require a review of your personal finances. This can occur if a personal guarantee is needed to strengthen the loan application. With a personal guarantee, you would be personally obligated to repay the debt if the business defaults on the loan. Step 4: Wait for Loan Approval Terms If the lender can issue a loan approval, then it’ll let you know what the terms of the loan will be. This will include the interest rate, loan amount, loan term, and any minimum required down payment. In most cases, it takes one to three business days to get approved once you’ve submitted a loan application. If you’re denied, then you can speak with the lender to see what options you may have. Oftentimes, this involves clarifying questions about your business and providing additional documentation. Step 5: Receive Funding & Purchase Equipment Once your loan is approved, you’re ready to purchase the equipment for your business. Some lending companies send the funds from the loan directly to you, while others require the funds to be sent directly to the vendor where the equipment is being purchased. This process of funding can sometimes take one to three days for the funds to be received. Step 6: Get Lien Information & Begin Periodic Loan Payments With an equipment loan, a lien is typically placed against the equipment being purchased. This is usually done with a uniform commercial code (UCC) filing and gives the lender the right to take possession of the equipment if you fall behind on your payments. Loan payments are typically made monthly, but the frequency of payments can sometimes be negotiated. Once you pay off the loan balance, the lien is removed, giving you full ownership of the equipment. Qualification Requirements for an Equipment Loan To qualify for an equipment loan, you’ll need to meet a lender’s requirements in several areas—such as your credit, personal, and business finances and the type of equipment being purchased. Time in business: Many equipment loans require your business to have been in operation for at least six months. Some lenders don’t have a minimum time in business, although you may need to provide additional documents showing your business finances. You’ll usually have an easier time getting approved once you’ve established a six- to 12-month history of running your company. Business finances: To show a lender you’ll be able to repay the loan, you may need to provide things like business tax returns, profit and loss statements, balance sheets, and cash flow statements. Personal finances: Depending on the lender and the strength of your business finances, it’s possible that you may also have to provide personal financial documents such as tax returns or bank statements. Credit scores: Lenders may review your personal and business credit scores. These items show a lender how you’ve handled your bills in the past, and how likely you’re to continue that trend. Equipment being purchased: Down payment requirements often range from 0% to 20% of the purchase price of the business equipment. A lender may use the expected lifespan in combination with your business/personal finances and credit to determine how much of a down payment is required. Pros & Cons of Equipment Loans Alternatives To Equipment Loans If you need to get a small business loan, an equipment loan may not be the best option. Here are a few alternatives you can consider. Equipment leasing allows you to rent equipment instead of owning it. Lease terms are typically shorter than an equipment loan and don’t carry the large upfront cash requirement of a down payment. Business line of credit is unsecured credit that allows you to turn its available credit into cash. As you pay down the balance, you can continue to draw funds up to the credit limit. You have flexibility in drawing only what you need and paying interest on the outstanding balance. Small business credit cards can be used to purchase items directly. As you pay down the balance, you can charge additional items on the card up to the credit limit. Credit card stacking is the process of applying for multiple credit cards at the same time to get access to more credit. It can improve the odds of approval before any negative impacts from credit inquiries or newly opened accounts affect your credit. Small Business Administration (SBA) loans are government-insured loans that can offer low interest rates and low monthly payments with loan terms of up to 25 years. There are different types, each with varying rates, requirements, and allowable uses for the loan proceeds. Business auto loan providers may offer better deals, although vehicles can qualify for an equipment loan. Bottom Line If you’re a business owner, an equipment loan can provide you with the funds needed to purchase equipment for your company. It can be a good choice to buy equipment that has a long lifespan as it’ll continue to provide value to the company long after the loan has been paid off. Even if you don’t need a loan to buy more equipment, using one can help you keep more cash on hand to be used for other purposes.

With interest rates steadily rising throughout 2022, more borrowers are turning to Small Business Administration (SBA) loans to obtain affordable financing. While SBA rates have also risen over the last year, these remain among the most affordable loan options. Regardless of what type of SBA loan you need, you’ll likely find lower rates than other financing options. Listed in the table below are the six types of SBA loans and the current loan rate ranges for each type. If you’re looking for an SBA loan, is a great choice. You can get funding of up to $25 million with little to no collateral and a credit score as low as 650. Even if you’re a sole proprietor or a startup, you can get funding through this lender. SBA 7(a) Loan Interest Rates & Explanation The SBA sets the maximum interest rates banks can charge for SBA 7(a) loans, and rates vary depending on the size of the loan and the length of the repayment term. These loans are based on market interest rates, so as the prime rate changes, so will the SBA 7(a) loan rates. To estimate your monthly payment on an SBA 7(a) loan, check out our free SBA loan calculator. This will allow you to estimate payments based on the current rates and the loan size needed. How SBA 7(a) Loan Rates are Determined The maximum interest rate on SBA 7(a) loans is based on three factors: A base rate (one of the following publicly available interest rate measures): Prime rate, London Interbank Offered Rate (LIBOR) (one month) plus 3.0%, or the SBA’s price/earnings to growth (PEG) ratio. The loan term: Loans of greater than seven years will be priced higher than those under seven years. The loan size: Loan sizes are categorized as less than $25,000, from $25,000 to $50,000, and over $50,000. Fixed vs Variable SBA Loan Interest Rates SBA 7(a) loans can have either a fixed or variable interest rate. Fixed-rate loans have the same interest rate throughout the life of the loan, whereas variable-rate loans can have changes in rates at quarterly or monthly intervals. Interest rates must be at or below the maximum interest rate set by the SBA. Banks tend to offer only variable rate loans to smaller SBA loans under $500,000. Rates on those loans are typically set near or at the maximum allowed by the SBA. Base Rate & Interest Rate Resets Banks can choose one of three market interest rates as their base rate. The prime rate, which is most often used, and LIBOR rates tend to be very close. The SBA PEG rate is released quarterly, so it can differ slightly, especially in a volatile rate market. SBA Express Loan Rates SBA Express loans, a subset of the SBA 7(a) loan program, offer a faster approval process than a standard SBA 7(a) loan. However, the price for faster approval is a higher interest rate. Express loans have a maximum of $350,000. The maximum interest rates for SBA Express loans are: SBA Express loans carry a higher interest rate for similar size amounts and terms than the standard SBA 7(a) loan. If you’re interested in an SBA Express loan, is an excellent option—you can get funding in as little as 30 days. SBA Loan Rates on CDC/504 Loans The SBA sets the maximum interest rates banks can charge on Community Development Company (CDC)/504 loans. The maximum interest rates on CDC/504 loans are tied to market interest rates based on the amount borrowed. A CDC/504 loan is composed of two loans: Bank loan: A loan from a financial institution for typically 50% of the price of the property, equipment, and building upgrades. CDC loan: A loan from a nonprofit organization, a certified development company (CDC), for 40% of the price. The remaining 10% is a down payment from the borrower. While the SBA doesn’t set the interest rate on the bank portion of the loan, the interest rate on these loans tends to be very low. Since the loan is backed by real estate, there’s a lower risk to the bank of not getting back the money it lends. This lower risk is reflected in a lower interest rate. Loan rates for the CDC portion of an SBA 504 loan are fixed for the life of the loan. The loan portion provided by the bank, credit union, or non-bank lender doesn’t have to be fixed—it may have a variable rate or balloon payment. SBA Loan Interest Rates on SBA Microloans Loan amounts for SBA microloans cannot exceed $50,000, and repayment periods cannot extend beyond six years. Interest rates for microloans generally range from 6% to 9%. However, the exact rates and terms available for SBA microloans vary by lender. SBA microloans are offered by intermediaries, referred to as SBA microlenders. They’re often nonprofit organizations with expertise in small business lending and technical assistance. The SBA maintains a list of all current SBA microlenders, organized by state. Economic Injury Disaster Loans (EIDLs) Businesses that have suffered economic loss through a national or economic disaster could be eligible for EIDLs. These SBA disaster loans require a disaster declaration from the federal government for a business to apply. If your business meets these eligibility requirements, you can apply for an EIDL directly through the SBA’s Disaster Loan Portal. However, the portal has been closed for EIDL loans for businesses affected by COVID-19. Frequently Asked Questions What is the interest rate on an SBA 7a loan? The maximum interest rate on an SBA 7(a) loan is determined by the size of the loan and the length of the repayment term. Those rates can be calculated using the following list below: Less than $25,000 loan, less than seven-year term: Prime rate + 4.25% Less than $25,000 loan, more than seven-year term: Prime rate + 4.75% $25,000 to $50,000 loan, less than seven-year term: Prime rate + 3.25% $25,000 to $50,000 loan, more than seven-year term: Prime rate + 3.75% More than $50,000 loan, less than seven-year term: Prime rate + 2.25% More than $50,000 loan, more than seven-year term: Prime rate + 2.75% What disqualifies you from getting an SBA loan? You can be disqualified from getting an SBA loan for either personal or business reasons. For instance, you can be denied if one or more of the following is true: Your credit score is too low There’s an issue of character, such as a criminal record You don’t have the revenue to repay the loan You don’t have enough collateral Meanwhile, your business can be disqualified if you’re in an ineligible business, including those engaged in illegal activities, loan packaging, speculation, multisales distribution, gambling, investment, or lending, or where the owner is on parole. How long can you finance an SBA loan? The maximum length of an SBA loan depends on the loan type. Real estate loans can be financed for up to 25 years, while equipment loans, working capital loans, and inventory loans max out at 10 years. Bottom Line While all interest rates have increased over the last year, SBA loans still provide the lowest rates available; however, these tend to take the longest to get funded. If you need a small business loan quickly, then you might consider a fast business loan or a same-day business loan. These can be funded within 24 hours but come with higher fees and interest rates than an SBA loan. If you can wait on funding and can qualify, SBA loans are the best financing option available for your business.

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 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.

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 6.2%. 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.

The best merchant cash advance companies not only provide access to merchant cash advances but also offer more affordable types of financing for your business. Merchant cash advances (MCAs) are lump-sum cash advances against daily credit card receipts. They’re an extremely expensive form of credit and should only be used as a last resort for businesses that cannot qualify for other types of financing. Here are the five best merchant cash advance companies: : Best overall MCA company for low rates and other financing options : Best for low credit borrowers : Best for lower revenue businesses : Best for companies looking for large advance amounts : Best for established companies Best Merchant Cash Advance Companies At a Glance See fullscreen table × Lendio: Best Overall MCA Company for Low Rates & Other Financing Options is our top choice among the best merchant cash advance lenders because applying with it gives you access to dozens of other financing options. Not only will you get the best possible rates on an MCA, but you could also qualify for more affordable financing. Any other funding option would be far less expensive than a merchant cash advance. With more than 75 lenders available in Lendio’s marketplace, you’re bound to find a financing option that fits your business needs without taking out an MCA. If you get an MCA, it only requires $2,500 in monthly credit card transactions, with funding in as soon as 24 hours. It has the lowest maximum loan amount on this list, but you could access larger funding with other loan types on its marketplace. You can start the application directly from the company’s website. Credibly: Best Merchant Cash Advance for Low Credit Borrowers With a required minimum personal credit score of 500, offers access to MCAs to even poor credit borrowers. However, a low credit score will likely come with a higher APR―as high as 250%―due to higher factor rates and potentially more fees. Credibly charges both an origination and a monthly admin fee. The monthly revenue requirement of $15,000 is the third highest on this list. However, like many providers here, it only requires you to be in business for six months. It also offers other lending products, including working capital loans, long-term capital loans, and business lines of credit. Stronger credit borrowers might be able to qualify for one of those loans, significantly reducing the cost of borrowing with lower rates and fees. You can start an application on Credibly’s website. Funding is promised within 48 hours of loan completion. Fora Financial: Best MCA Provider for Lower Revenue Businesses has improved its MCA product by increasing its maximum advance amount to $750,000. Like most of the other MCA providers in this guide, you must be in business for at least six months. You’ll also need at least $10,000 in monthly revenue, the lowest on this list, and $5,000 in monthly credit card sales to qualify. However, one drawback is its funding time of 72 hours, which is the slowest on this list. The company will require you to complete a one-page application and submit three months of credit card statements and three months of bank statements. It may also require tax returns, balance sheets, and profit and loss statements. For faster funding, Fora Financial suggests filling out these forms before applying. It also offers other business financing options, including small business loans, business lines of credit, bridge financing, inventory loans, and equipment financing. These would be less expensive options than an MCA, so consider asking about other financing possibilities. You can start an application on the company’s website. Uncapped: Best for Companies Looking for Large Advance Amounts While not a traditional MCA product, revenue-based financing option works the same way. You can borrow up to $10 million with a factor rate of 1.02x to 1.12x. There’s no minimum credit score listed and no maximum repayment term. You repay the loan with revenues, and payments fluctuate with revenue. If your revenue slows, repayment slows as well. This can lead to widely different APR rates depending on how long it takes to repay the loan. While Uncapped will set a credit limit, you only have to use the amount of capital needed, which can lower your payments and make the loan less expensive. Future credit limits can be based on your company’s growth trajectory. You need at least $100,000 in monthly revenue, which can make it very difficult to qualify. You can connect your sales and bank accounts directly to Uncapped when applying to speed up the approval process. It also offers fixed-term loans and software-as-a-service (SaaS) runway loans. You can apply directly through Uncapped’s website. You log in with your work email, provide business details, and find out within two minutes if you’re eligible for funding. Uncapped will provide offers within 24 hours. Libertas Funding: Best for Established Companies For high revenue companies who have been in business for at least a year, provides very large MCAs. You can get an advance of up to $3 million for up to 12 months, though its qualifications are more stringent than the average MCA provider. You need at least a 600 personal credit score, be in business for at least 12 months, and have at least $50,000 in monthly revenue. Libertas Funding has the highest minimum advance amount on this list of $25,000 and the second highest at $3 million. Because of the higher funding amounts and short terms (three to 12 months), APR rates can be very high. It also offers a term loan of up to $2.5 million for up to 24 months. You need a personal credit score of 625 and at least two years in business to qualify for the term loan. You can start your application directly through the Libertas Funding website. Funding can be received in as little as 24 hours. Documentation Required for MCAs Most lending companies will require the following documents when you apply for an MCA: Three to four months of credit card statements Three to six months of bank statements Tax returns Balance sheet Profit and loss statement Alternatives to Merchant Cash Advances MCAs are an expensive form of credit used by businesses that cannot get approved for other types of business financing, and they should be used as a last resort. Before looking into an MCA, consider the following small business loans, which are far less expensive: Short-term business loans: These have a quick application process, simple repayment plans, and fast funding. They’ll have lower APRs than MCAs. Business lines of credit: These allow business owners to draw against an established credit limit as needed rather than receiving the full amount of the loan upfront. Interest is charged on the amount used, and borrowers repay in installments. Lines of credit work well for working capital loans. Invoice factoring: Unpaid invoices are assigned to a factoring company, which then offers your business an advance of approximately 80% of the invoice upfront. The customer repays the factoring company instead of your company. Once the invoice is satisfied, the remainder of the invoice, minus fees, is distributed to your company. Equipment loans: These are fixed financing to either purchase or refinance vehicles and heavy equipment. The purchased collateral secures the loan. Home equity line of credit (HELOC): This uses the equity in the business owner’s property (usually a primary residence) to take out a loan or line of credit. The business owner will need to have equity in the residence, a debt-to-income (DTI) ratio of 50% or lower, and a credit score of at least 650 or above. Business credit cards: These help with cash flow management and can offer perks and rewards for the business. They’re best used for small recurring charges rather than large capital expenses. How We Evaluated Merchant Cash Advance Companies When ranking the best merchant cash advance lenders, we considered the following criteria: Maximum advance amount Minimum APR Speed of funding Qualifications required by each lender. While we strongly recommend exhausting all other options for business financing before settling for MCAs, we recognize that this type of financing is necessary for some businesses. The five lenders here are the best for a less-than-desirable lending product. To compare lenders or calculate an MCA’s potential costs, check out our MCA calculator. Frequently Asked Questions What is a merchant advance company? A merchant cash advance (MCA) company is a provider that offers a business financing product, allowing companies to receive a lump-sum advance payment in exchange for a fixed percentage of their daily credit card receipts. MCAs are an expensive form of credit and should only be used as a last resort by businesses that cannot qualify for other forms of financing. Is a merchant cash advance a good idea? Merchant cash advances should be seen as last-resort financing for businesses that cannot qualify for other types of loans. They’re an expensive form of credit with APR rates routinely exceeding 200%. If other options are available, merchant cash advances are a bad idea. What is the interest rate on a merchant cash advance? The typical APR on a merchant cash advance ranges from 40% to more than 200%. It’s the most expensive form of credit on the market and should be seen as last-resort financing. Find the true costs of a merchant cash advance by using an MCA calculator before applying. Bottom Line While MCAs are extremely expensive and should be seen as last-resort financing for businesses, sometimes it’s the only option. The five providers on this list offer MCAs for businesses that have no other financing option. They all provide more affordable credit options, and if you apply with one of them, ask about qualifying for more affordable options before settling on an MCA.