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Business Loan Providers for Business Startups

Business loans are essential for a business startup or growth. However, getting the right business loan and lender can be hectic. In this article we will provide you with the best business loans. 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. 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.

1. Lendio

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.

2. BlueVine

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.

3. Funding Circle

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.

Read also: Best Crowdfunding platforms for individuals. 

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. 

4. Rapid Finance

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.

Read also: Best sources of funding for business startups. 

5. SBG Funding

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.

6. Fundbox

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.

7. Guidant Financial

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.

8. Kiva

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.

Read also: How to find loan for small business startups.

9. SunWise Capital

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.

10. Kabbage

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.

11. 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.

12. OnDeck

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.

13. 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.

Summary

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.