Business loans are essential for a business startup or growth. However, getting the right business loan and lender can be hectic. Therefore, this article will help you find the best business loans and lenders. We will inform you about the best business loan lenders available and how they work. You will also get to know how you can qualify for a particular loan.
Best Business Loans and Lenders for Startups
Lendio is the most preferred business loan lender due to its fast application process. You can apply for the loan online. It matches a borrower to the right loan and lender.
It offers the following types of loans; term loan, line of credit, commercial mortgage and invoice financing. Its loan interest rates range between 4.25% and 8%, while the repayment term ranges between 1 and 25 years, depending on your preferred loan. Lendio has partnered with many lenders, thereby matching you with the best loan and lender.
BlueVine is a business loan lender offering different types of loans. Among the loans it advances include term loans, invoice financing and lines of credit. Your business must have been in operations for the last six months and have minimum annual revenue of $100,000. It have a credit score of at least 530 for invoice factoring and 600 for credit line and term loan.
They advance a loan between $5,000 and $5,000,000. The repayment duration for lines of credit varies from 6 months and 1 year. For term loans, the repayment period varies between 26 weeks and 52 weeks. They offer a wide range of loans with a quick and straightforward application process. The downside is that they are not available in all states.
Fundbox is an exciting business lender offering lines of credit. You do not need to fill an application to get a business loan. You only need to connect it to your bank account or accounting software. It will review your finances and if it is impressive, you will qualify for a loan.
It is also one of the best loan lenders for businesses with low credit scores. You can qualify for a loan if your business has been in operation for 3 months and has an annual turnover of $50,000. The only downside is that it offers low maximum loans with high APR.
Fundera is the best lender for personal loans. It is the best lender for enterpreneurs that are just starting. Fundera is a platform that helps you compare loans so that you can land on the best for your business. They offer various loans like the line of credit, personal loans, short term loans and term loans. These loans have varying interest rates, but they range between 5.99% and 7%, with a repayment period varying between 3 months to 5 years.
However, it is best to apply for business loans than using personal loans for your business. This is because personal loans have higher interest rates compared to business loans.
OnDeck offers term loans and lines of credit that come with fixed interest rates. Your business must have been in operation for the last one year to qualify for a business loan. The business must also have a minimum annual turnover of $100,000 and a minimum credit score of 600.
Rapid Finance offers different types of loans, including lines of credit, invoice factoring, asset financing loans, term loans and merchant cash advances. Your business must have been in operation for at least three to six months to qualify for their loans.
They provide loans amounting between $5,000 and $1,000,000 with loan terms ranging between 3 months and 60 months.
Funding Circle is a peer to peer lender, providing small loans to businesses. There is no minimum annual turnover required for a business to qualify for the loan. However, your business must have been in operation for at least 2 years. It connects you to lenders who in turn advance a loan to your business.
Funding Circle is now advancing SBA loans and term loans with interest rates of 6% and 4.99%, respectively. The term loan repayment period is between 6 months and 5 years, while the SBA loan is up to 10 years.
Kabbage offers borrowers with line of credit. You need to connect Kabbage to your bank account. This makes it fast to apply and qualify for a loan. If you are eligible for a loan, you can access the loan through PayPal, card or bank account. The only downside is that it offers loans at high-interest rates, but it is suitable for businesses that require loans instantly.
Kiva is the best microloan lender in the market. Their loans do not exceed $10,000. It may not be the best lender for businesses looking for large loans. If you want a small business loan, then Kiva is the best option. It is more like a crowdfunding platform that requires you to get people to contribute to your loan. The 0% interest rate makes it the best crowdfunding platform.
Also Read: Best Crowdfunding platforms for individuals.