The Best Small Business Loans of 2023
Small business owners often need cash to meet operating expenses, fill cash flow gaps, or take advantage of growth opportunities. But sometimes the cash requirement is not met. In such a situation, the business owner can meet the needs of his business by taking out a small business loan.
The best small business loans will help you get the funding your company needs to succeed, whether you’re just starting out or looking to expand.
Below is a list of the best small business loans on the market and details about each offer. The list selection is based on the accessibility and affordability of the financing solutions, funding speed, and other attractive features offered by them.
Bank of America
| LOAN AMOUNT | Up to $100,000 |
| LOAN TERMS | 5 years |
| APR | Varies based on your business’s qualifications |
| MINIMUM CREDIT SCORE | 670 |
Why We Picked It
- Bank of America offers several types of small-business loans, including SBA loans, term loans, business lines of credit, auto loans, and equipment financing.
- The term loan from Bank of America has affordable interest rates and adaptable repayment options.
- There is no requirement for collateral.
Eligibility
- There must be a minimum credit score of 670.
- Their businesses must have been in existence for at least two year
- This business’s annual revenue must be $100,000.
Pros & Cons
| 🟢Pros | 🔴Cons |
|---|---|
| ☑ No collateral required. | ☒ You must already be a Bank of America client in order to apply online. |
| ☑ The Preferred Rewards program from Bank of America may provide benefits such as interest rate reductions. | ☒ Prepayment fees may apply to early repayments. |
| ☑ Competitive interest rate | ☒ Two years in business required to qualify. |
Funding Circle
| LOAN AMOUNT | $25,000 to $500,000 |
| LOAN TERMS | 6 months to 5 years |
| APR | 7.49% to 24.99% |
| MINIMUM CREDIT SCORE | 660 |
Why We Picked It
- Since its inception in 2010, it has helped 130,000 businesses in 700 industries and lent $19.4 billion globally.
- Funding Circle provides fast, affordable loans with a simple application process and funding in as little as 48 hours.
- It provides mainly three types of business loans: business term loans, lines of credit, and SBA loans.
- Funding Circle provides business lines of credit between $6,000 and $100,000.
- Finding Circle SBA loans range from $25,000 to $500,000 with terms of up to 10 years.
Eligibility
- Minimum personal credit score of 660
- Their businesses must have been in existence for at least two year
- There have been no personal bankruptcies among business owners within the last seven years.
(If you apply for an SBA loan, you must have been in business for two years, have a minimum credit score of 650, and have a minimum annual revenue of at least $400,000. There must be no current federal tax liens on the business, and your business must be operating in one of the SBA-eligible industries.)
Pros & Cons
| 🟢Pros | 🔴Cons |
|---|---|
| ☑ Funding in as little as 48 hours | ☒ Between 3.49% and 6.99% of the loan’s approved amount as a one-time origination fee. |
| ☑ No minimum annual revenue requirement | ☒ Two years in business required to qualify. |
Wells Fargo Small Business Advantage: Line of Credit
| LOAN AMOUNT | $5,000 to $50,000 |
| LOAN TERMS | Not disclosed |
| APR | 13.00% to15.00% |
| MINIMUM CREDIT SCORE | 680 |
Why We Picked It
- The Wells Fargo Small Business Advantage Credit Line is designed for customers with businesses less than two years old.
- There is no annual fee.
- Automatic enrollment in a free rewards program.
Eligibility
- Must have a minimum credit score of 680.
- Household personal liquid assets must be less than $500,000.
Pros & Cons
| 🟢Pros | 🔴Cons |
|---|---|
| ☑ No annual fee or prepayment penalties. | ☒ Funding could take longer than with online lenders. |
| ☑ Competitive interest rate | |
| ☑ The Wells Fargo Small Business Advantage Credit Line is available to borrowers with less than two years in business. |
OnDeck
| LOAN AMOUNT | $5,000 to $250,000 |
| LOAN TERMS | Up to 24 months |
| APR | Not disclosed |
| MINIMUM CREDIT SCORE | 625 |
Why We Picked It
- Since its establishment in 2006, OnDeck has been a leading provider in the business loan sector, offering both term loans and lines of credit. To date, OnDeck has provided over $14 billion in funding to small businesses.
- OnDeck offers a variety of business lending products and same-day funding.
- OnDeck also offers lines of credit from $6,000 to $100,000 with a 12-month repayment term that resets after each withdrawal.
Eligibility
- For consideration for an OnDeck term loan or line of credit, prospective borrowers must have a personal credit score of at least 625.
- Their businesses must have been in existence for at least a year and generate at least $100,000 in yearly gross revenue.
- Additionally, applicants must have an active business checking account.
Pros & Cons
| 🟢Pros | 🔴Cons |
|---|---|
| ☑ Same-day funding | ☒ Operation must have lasted at least a year. |
| ☑ Low credit score requirements | ☒ OnDeck does not lend to businesses in Nevada, North Dakota, or South Dakota. |
| ☑ In addition to the loan, you have the option of obtaining a credit line of up to $100,000. | ☒ There is a minimum revenue requirement of $100,000 annually. |
Lendio
| LOAN AMOUNT | $500 to $5 million |
| LOAN TERMS | Vary as per loan |
| APR | As low as 3% |
| MINIMUM CREDIT SCORE | 560 |
Why We Picked It
- An online marketplace for business loans called Lendio links potential borrowers to both traditional banks and nonbank online lenders.
- Lendio has around 75 lenders through which it has helped small business owners access over $12 billion in funding across the country.
- On this platform, applicants can apply for business loans, lines of credit, SBA loans, equipment financing, merchant cash advances (MCAs), commercial mortgages, invoice factoring, and business acquisition loans.
Eligibility
- Lendio is the only platform and not a lender, so minimum credit score requirements vary by loan product. With a score as low as 560, you may be eligible for financing; however, to get the best deals, we advise scores of at least 680.
- Their businesses must have been in existence for at least six months to one year.
Pros & Cons
| 🟢Pros | 🔴Cons |
|---|---|
| ☑ There are many different loan products, such as term loans, lines of credit, and SBA loans. | ☒ Prepayment penalties are imposed by some lenders. |
Bluevine: Line of credit
| LOAN AMOUNT | $6,000 to $250,000 |
| LOAN TERMS | Either 6 months or 12 months |
| APR | 20.00-50.00% |
| MINIMUM CREDIT SCORE | 625 |
Why We Picked It
- Bluevine offers a flexible line of credit to meet your business’s working capital needs.
- Credit Line customers do not have to pay any account opening, maintenance, prepayment, or closure charges. They have the ability to request funds as needed and automatically refill their available credit line when making repayments on their draws.
Eligibility
- Prospective borrowers must have a minimum credit score of 625 to qualify for a Bluevine credit line.
- Their businesses must have been in existence for at least two years.
- Businesses must have at least $40,000 in annual revenue.
Pros & Cons
| 🟢Pros | 🔴Cons |
|---|---|
| ☑ Low credit score requirements | ☒ There is a requirement for a personal guarantee. |
| ☑ Cash can be available within 24 hours. | ☒ High rate of interest |
| ☑ Various term lengths for various financial requirements | ☒ Not available in North Dakota, South Dakota or Nevada. |
American Express Business Blueprint™
| LOAN AMOUNT | $2,000 to $250,000 |
| LOAN TERMS | 6,12, or 18 months |
| APR | Varies by loan term |
| MINIMUM CREDIT SCORE | 660 |
Why We Picked It
- It is a line of credit offered by American Express for businesses.
- Available credit Each month that a customer’s amount is unpaid, they are charged a loan fee. For six-month loans, total monthly fees range from 3% to 9%, for 12-month loans, 6% to 18%, and for 18-month loans, 9% to 27%.
Eligibility
- Prospective borrowers must have a minimum personal credit score of 660.
- Their businesses must have been in existence for at least one year and have a valid business checking account.
- Businesses must have at least $360,000 in annual revenue.
Pros & Cons
| 🟢Pros | 🔴Cons |
|---|---|
| ☑ There is no prepayment penalty. | ☒ Monthly fees on unpaid balances |
QuickBridge
| LOAN AMOUNT | Up to $400,000 |
| LOAN TERMS | 4 to 18 months |
| APR | Factor rates start at 1.11* |
| MINIMUM CREDIT SCORE | 600 |
Why We Picked It
- QuickBridge provides small business loans to business owners nationwide.
- Applying to QuickBridge is quick, and funding can happen within 24 hours, but you need fair to excellent credit to qualify.
Eligibility
- Business owners need fair to excellent credit. (Fair credit is considered to be at least 580 as per the FICO score scale.)
- Their businesses must have been in existence for at least six months.
- Businesses must have at least $250,000 in annual revenue.
Pros & Cons
| 🟢Pros | 🔴Cons |
|---|---|
| ☑ Quick application and fast funding | ☒ Origination fee |
| ☑ Early payoff discounts | ☒ High rate of interest |
| ☒ There is a minimum revenue requirement of $250,000 annually. |
National Funding: Online Term Loan
| LOAN AMOUNT | $10,000 to $400,000 |
| LOAN TERMS | 4 months to 2 years |
| APR | Buy rates start at 1.11% |
| MINIMUM CREDIT SCORE | 600 |
Why We Picked It
- National Funding provides entrepreneurs with fast approval for small business loans and a simple application process.
- Borrowers who do not qualify for more traditional loan options may consider National Funding for quicker access to capital.
Eligibility
- Prospective borrowers must have a minimum personal credit score of 600 to qualify for financing through National Funding.
- Their businesses must have been in existence for at least six months, making it a possible option for startups.
- Businesses must have at least $250,000 in annual revenue.
Pros & Cons
| 🟢Pros | 🔴Cons |
|---|---|
| ☑ Receive a decision within 24 hours | ☒ Only short-term repayment terms are offered. Which requires daily or weekly repayment. |
| ☑ Low credit score requirements | ☒ Has a factor rate that makes comparing expenses to those of other lenders more challenging. |
| ☑ No collateral or down payment required. | ☒ Requirement of higher revenue compared to other lenders. |
| ☑ Prepayment discounts available. |
Also Read: The Best Personal Loans of 2023
Fundbox: Line of Credit
| LOAN AMOUNT | $1,000 to $150,000 |
| LOAN TERMS | 3 months to 6 months |
| APR | 10.10% to 79.80% |
| MINIMUM CREDIT SCORE | 600 |
Why We Picked It
- Through Fundbox, Owners of businesses are eligible to apply for revolving business lines of credit up to $150,000 with 12- or 24-week payback durations. As you pay off your line of credit, your available credit increases once more.
- Fundbox offers an easy and quick application process. When you apply, you can get a credit decision in as little as 3 minutes.
- Funds can be available as soon as the next business day if approved.
- Fundbox offers flexible repayment terms and the facility of choosing a repayment plan each time when drawing funds—with no prepayment penalty.
Eligibility
- Prospective borrowers must have a minimum personal credit score of 600 to qualify for financing through Fundbox.
- Their businesses must have been in existence for at least six months, making it a possible option for startups.
- Businesses must have at least $100,000 in annual revenue.
Pros & Cons
| 🟢Pros | 🔴Cons |
|---|---|
| ☑ Receive a decision within three minutes | ☒ There are only short-term repayment terms offered. |
| ☑ Low credit score requirements | ☒ There is a minimum revenue requirement of $100,000 annually. |
| ☑ Next-day funding | ☒ Rates are high compared with traditional banks. |
