To start a business, you must think of various sources of startup funding. Your business plan should have details of all the startup capital that you need to launch your business. There are many business startup loan lenders in the US. Consequently, there are many kinds of business loans you can get. Among them are microloans, equipment loans, SBA loans, microloans, personal loans and loan dorm friends and relatives.
Read more: How the government can support SMEs to grow.
Leading Loan Lenders for Business Startups in the US
The following are the best business loan lenders in the US.
Lendio provides over 12 different business financing loans. You do not need the best credit score to get a loan since they can help you get a loan from partners. The minimum credit score is 560, with a repayment term of between one money and 25 years. The APR starts at 6%, where you can get up to $2,000 million worth of the business loan.
The downside is that they take longer to approve a loan while there are also prepayment penalties. You also need to have a gross average income of $10,000 consistently in the last six months. The business must also be in the US or Canada and must also have a bank account.
SBG Funding deals with businesses that have been in operation for the last six months. They advance a loan of up to $5,000,000 with a minimum credit score of 500. The APR ranges between 5% and 35%. It is considered the best funding source for businesses that do not qualify for a loan from financial institutions. They offer a wide range of business loans.
However, to qualify for a business loan, your business must have a minimum revenue of $150,000 annually. Luckily, they do not require any other collateral to get a loan. You only need to make payments to your business checking account from where the loan is deducted.
Guidant Financial gives loans to businesses that want to open doors. You need to have a good credit score of at least 690 and a credit utilization rate of less than 50%. The interest rates range between 12% and 18%. They advance a loan of up to $150,000 while also having a wide variety of loans. However, it can take months to have your loan approved.
To qualify for the loan, you must have high credit scores. Your business must also not have ever been declared bankrupt. Its downsides are that you need to provide collateral for SBA loans. It also takes sometime before you can receive the funds.
Kiva is a business loan lender for business owners. If you are thinking of getting a crowdfunding loan, this is the best option since such loans attract a 0% interest rate. You do not require any credit score to qualify. You can be eligible for the loan even if you are not a US citizen or resident.
Its downside is that it can take some time before you can be advanced with the finds. It depends on the period it will take to raise funds.
Sunwise Capital is an excellent option for business owners who do not want a lot of paperwork. You need a minimum credit score of 500 and you can qualify for a $2,000,000 loan. The APR starts at 5.49%. It is an excellent option for business owners who cannot be eligible for a business loan from a financial institution due to their credit scores.
The requirements are that the business needs to be at least one year old and also have minimum revenue of $150,000 annually. You can qualify for the loan with bad persona credit and get the funds within one business day.
Diamond Business Loans
Diamond Business Loans lends loans of between $25,000 and $150,000 to business owners. You only need a minimum credit score of 680. The APR ranges between 5.9% and 19.99%. Once the loan is approved, you will receive the funds within two weeks.
To qualify, you must not have been bankrupt or have a record of late repayment. The loan does not have an online application and there is a 10% origination fee. The minimum repayment period is 12 months and a maximum of 60 months.
Seek Business Capital
Seek Business Capital lends loans to businesses that have been in operation for at least six months. They offer loans that range from $5,000 to $500,000, with a minimum credit score of 680. The APR varies and is fixed with the lender, but you can be sure they offer the best rates. It takes between 3 and 6 months to receive the funds.
Getting the best business loan lender will make your loan cheaper and also facilitate smooth repayment. Go for a business loan provider with the best loan rates. Having a high credit score will help you get better loan terms. In case you have a poor credit score, you can also get a cheaper loan. You should compare loans from different providers.
Also read: How to find loan for small business startups.