Are you overwhelmed by applying for loans to start your small business? What about to maintain your business temporarily after a bad quarter? Small business loans are tricky to secure, and they can mean the difference between success and failure no matter your industry.
When you're securing a small business loan, it helps to know where to turn. I've taken a look at many small business lenders all over the US. These are some of the top options. Hopefully this comparison will help you determine which service or lender is right for your particular business needs.
Top 5: Small Business Loan Companies Review
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National Funding is one of the leading industry options when it comes to finding small business loans. There are multiple different types of solutions that can be tailored to fit the specific needs of your business. You can apply for small business loans, or you can apply for loans for equipment financing or leasing.
Small business loans are available to meet any of the following needs:
Applying can be done through a simple online form. You'll then be connected with a loan specialist who will discuss the best loan options for you. Decisions should arrive anywhere from 24 hours to a few days after your application is processed.
One of the biggest selling points of this company is that there are loan solutions available for nearly every situation. Some of the types of loans include:
The application is free, doesn't impact your credit score, and doesn't come with any obligations. Each application is reviewed by a team who will match you with a financing solution that fits your needs.
Lendio is a system that allows you to compare different loan offers from more than 75 lenders. You get the instant ability to see what kind of offers might suit your needs and capabilities after filling out one simple application. The software includes guidance on the best loan options for you.
For some people, you'll have your capital within 24 hours of your application being processed. However, this time frame depends largely on the lender that you use. More than $1.4 billion has been given to people in loans through offers procured by this company.
Some of the types of loan that you can explore include:
The number of different loans available means that you have flexible options to get financing tailored to your needs.
You can also use online tools offered by the website to determine how much you need to borrow, how much you can expect to borrow, and what kind of terms are most likely. In fact, there are nine different calculators that let you determine costs for many different kinds of business loan.
BlueVine is best known for giving people access to fast small business loans. The approvals can happen within five minutes, which is significantly quicker than you get with most other lenders. That makes this company the place to go if you need funding right away.
Loans can be anywhere from $5,000 to $5 million. Solutions are tailored to your needs. You can get offers in three categories: lines of credit, term loans, and invoice factoring.
Credit lines can be approved for up to $250,000. You don't have to pay any prepayment penalties, and if you don't use the entire line, you only pay for what you do use.
Term loans give you a lump sum of cash right away. Loans might be approved for up to $250,000. You can customize your loan amount. You'll pay the money back at a fixed weekly rate with interest that varies depending on your credit and the terms of the loan.
Invoice factoring is a way of turning your unpaid invoices into money. You can get credit lines of up to five million dollars, and you don't have to engage in any long-term contracts.
Applying online is easy, and there are advisors available who can walk you through the loan approval process. They can help you determine which options are right for you and what funds you need.
Fundbox is a company that offers small business loans tailored toward growth. Receiving a credit decision takes just a few minutes after the application. You can get a transfer of funds within a business day in some cases.
The loans are set up to be transparent and simple. You can access a dashboard with information about your funds and payment schedule. When you draw the funds, they're deposited into your business account. Making early payments saves you money.
The flexible setup is ideal for those who want a certain amount of money but aren't sure they'll use it all. If you don't draw the funds, you don't have to repay them with interest. You only end up paying interest on what you use.
The application includes basic information about your company. You'll also attach your accounting software and bank account. Upon being approved for a loan, you can draw funds whenever you want and have them deposited within a business day.
There aren't any penalties for early repayment. You can pay equal installments over 12 or 24 weeks, depending on the type of plan you choose.
The company also has a variety of online resources. There's a business funding guide that explains what kind of funding you should look for. In addition, the resources library gives you information about small business loans and growth to help you with planning your financial structure.
Kabbage is a company that helps to streamline the application process for federal relief. By using the Paycheck Protection Program, you can apply for loans to cover payroll and certain other expenses.
You'll need at least one year of data before you fill out the application. When you apply, there are loans available for up to 2.5 times the amount of your general monthly payroll during that year. This particular company only processes loans of up to two million dollars.
If you keep all of your employees on the payroll, then whatever part of the loan is used for mortgage interest, utilities, rent, and payroll will be forgiven for eight weeks after the issue of the loan. Up to 100 percent of the loan can be forgiven.
If any portion of the loan isn't forgiven, it's treated like a two-year loan with just a 1 percent fixed interest rate. This means that the monthly payments are exceptionally low. Payments are also deferred for six months, although interest keeps accruing over this time period.
By using this online platform, you'll be walked through the process of applying for a loan including your payroll filings and whatever certifications are necessary to be eligible. You'll then be shown the maximum amount that you're eligible for. Once approved, you can connect your bank account to receive the loan.
National Funding is the best pick to get a small business loan that's specifically customized for your needs. Every application is reviewed by a team of real people who then match you to the best funding options. There are even loan structures available for business owners with bad credit who wouldn't be able to find offers with other lenders.
If you want a platform that can compare offers from multiple lenders at once, Lendio is the top solution. After you apply, you'll be shown potential loans from more than 75 businesses. You can also use the nine available calculators to determine your exact needs and means for many different loan types.
BlueVine offers some of the fastest loan options and approvals, if you don't mind paying a potentially higher interest rate. For simple, flexible lines of credit, Fundbox is the answer. And for streamlined help applying for federal payroll aid, Kabbage helps you avoid needing to lay off workers.
Frequently Asked Questions
What Type of Small Business Loan Is Best?
It depends on your exact needs. Two common approaches are lines of credit and term loans. With a line of credit, you only use what you need and pay it back with interest. With term loans, you get a lump sum and pay it back over time with a fixed payment plan. Other loans are available for more specific circumstances as well.