The Top Small Business Loans of 2023
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It's fast and free, and it won't affect your credit. *
Compare the Top Small Business Loans on Lantern's Marketplace
About the Lender
OnDeck offers Term Loans and Lines of Credit specifically tailored to meet your needs. Apply online or through a dedicated Loan Advisor in minutes and, if approved, you can receive funds in as little as 1 business day.
- Fast & easy application process that takes less than 10 minutes to complete
- Multiple flexible financing options with hassle-free repayments automatically withdrawn
- OnDeck reports to credit bureaus so you build business credit with timely payments
Disclaimer
This does not constitute an actual commitment to lend or an offer to extend credit.
About the Lender
As a global leader in business term loans, Funding Circle takes a holistic approach to finding the lowest rates and most favorable terms for your business financing needs. [Funding Circle is both a term loan provider and a small-and-medium business (SMB) lending marketplace.]
- Flexibility (No pre-payment penalties and the ability to apply for additional financing after 6 on-time payments *sole props require 12 on-time payments)
- Long term lengths (up to 7 years)
- Funds deposited to your account in as little as 3 days
- Fixed rates locked in for the duration of the loan
- We report to Commercial Credit Bureaus
- Monthly payment payback structure for all loans
Disclaimer
This does not constitute an actual commitment to lend or an offer to extend credit.
About the Lender
Seek Business Capital specializes in providing funding for startups & early stage business owners
- Get pre-approved within minutes
- No hard credit pull
- Funding range: $10,000- $250,000.
- Seek Business Capital provides funding approvals exceeding $300 million per year
Disclaimer
Seek Business Capital provides no guarantees of funding based on funding proposals. All offers are subject to final bank approval.
About the Lender
Fundera is a small business loan aggregator
About the Lender
Lendio is among the best in the nation for their small business loan marketplace. After you fill out a single application, they simplify the entire lending process by bringing you hand-picked offers curated from a list of over 75 lenders. Their technology narrows down a list of options that meet your lending criteria and then you get to work with a dedicated funding manager to help you choose the best one for your business.
- Free 15 minute application
- Gain access to 75+ lenders
- Work with a dedicated funding manager to help you through the process
- Get funded in as little as 24 hours
Disclaimer
This does not constitute an actual commitment to lend or an offer to extend credit.
About the Lender
Biz2Credit provides flexible funding to match small businesses’ needs as they take on an ever-changing economic landscape. Ally online or with a Funding Specialist who can help your business choose the right funding. If approved, get funds in as little as 1 business day.
- Fast online application takes as little as 5 minutes to complete
- Rated "Best for Business Loan Options" by Forbes Advisor, Money.com, and CNBC
- Over 15,0000 5-star reviews from real business owners and over $7 billion funded so far
Disclaimer
This does not constitute an actual commitment or an offer to extend credit. Rates, amounts, and terms are subject to application, qualifications, and approval.
How does Lantern by SoFi work?
Small Business Loan Uses
Buy commercial real estate Purchase or repair equipment Cover working capital expenses Buy inventory at a discount and/or in preparation for a busy season Expand the business
Compare Common Types of Small Business Loans
SBA Loans Business Line of Credit Commercial Real Estate Loans Equipment Financing Business Acquisition Loans LLC Business Loans
How Do Small Business Loans Work?
Business Line of Credit May be used for any type of purchase Often best for covering gaps in cash flow or emergency expenses
Commercial Real Estate Loan Funding to purchase, develop, or construct buildings or land for business use
Equipment Financing Loans for any type of business-related equipment (e.g. computers, work vehicles, desks) Equipment typically serves as collateral on the loan
Invoice Factoring and Financing May help improve cash flow when waiting on payment from unpaid invoices Functions as a cash advance
Microloan Purchase allowances vary by lender Generally used for smaller expenses
Term Loan May be used for any business purchase Available in long-term and short-term options
How Do SBA Loans Work?
7(a) Loans Can be used for nearly any business need, including but not limited to: Working capital Equipment purchases Commercial real estate Renovating an existing building Establishing or acquiring a business Refinancing existing business debt (under certain conditions)
Maximum amount of $5 million Must do business in the US, have invested equity, and have used other financial resources, among other requirements
504 Loans Certified Development Companies (CDCs) work with the SBA to provide up to $5 million for growing businesses Provides funding for things like: Purchase or construction of existing or new facilities Equipment and machinery Modernizing land, streets, and parking lots Renovating existing business facilities
CANNOT be used for: Working capital or inventory Consolidating, repaying or refinancing business loans Speculation or investment in rental real estate
Long-term, fixed-rate loans Eligible businesses must be in the US, be worth less than $15 million, and have an average net income of less than $5 million
Microloans Nonprofit, community based lenders work with the SBA to provide small businesses with funds to repair, renovate, or expand their operation Worth up to $50,000, but average amount is $13,000
Where Can I Get a Small Business Loan?
Banks Refers to traditional brick-and-mortar banks (though they may also have online services Could have more favorable terms and rates compared to online lenders, especially if you already have a relationship with the bank Application process is often lengthy May have more stringent eligibility requirements
Credit Union Member-owned, non-profit entities that may have brick-and-mortar locations as well as online services Often have competitive terms and rates Frequently have flexible qualification requirements for members More likely to be focused on helping the local community
Online Lender Applications often reviewed quickly Funds typically dispersed in a matter of days Can easily compare lenders May be more open to those with poor credit or a short history Often have higher APRs than other options
P2P Network Business owners are matched with investors on the P2P platform Odds of qualifying may be higher compared to other types of lenders, even with bad credit Fast application and quick time to funding Could have transaction fees others don't Platforms facilitate transfers and payments
Who Can Apply for a Small Business Loan?
You have good business and personal credit scores. Your revenue history is acceptable. You have a strong business plan. Your company is well-established. You have a low debt-to-income (DTI) ratio.
Steps to Apply for a Small Business Loan?
Determine your business need(s), calculate the costs, and prioritize. Choose the type of loan that most aligns with your needs and qualifications. Decide which type of lender(s) you'd like to use. Some possible choices include: Online lenders Banks Credit unions Peer-to-peer networks
Evaluate your business and personal credit history against the minimum requirements of the lenders you're considering to determine what you'll qualify for. Prepare relevant documentation like bank statements, legal documents, business expenses, and tax returns. Compare small business lenders. Apply with the lender(s) that suit your business needs, qualifications, and desired loan repayment term.
Can You Get a Small-Business Loan With Bad Credit?
How Do I Choose the Best Small Business Loan for My Needs?
How much funding you need: Small business lenders have different maximum loan amounts they’re willing to lend to borrowers. Why you need it: Is it an emergency expense that requires a quick application and time-to-funding? Or is it a larger expense that requires more time to compare rates and lenders? The type of loan you want: Different business loans are crafted for different business uses. Think about what best aligns with your qualifications and the reason you need funding. Whether you meet requirements: Try to be realistic with yourself about the strength of your credit and business history. Focus your attention on the types of loans and lenders that can offer you the best rates for your qualifications. How much of a monthly loan payment you can afford: Running a business is expensive. You’ll want to make sure you find a loan with rates and terms that allow you to make the monthly payments without cutting too deep into your business’ cash flow.
Can I Get Free Money for My Business?
A strong business plan Being in a particular industry Being a for-profit (or non-profit) company Showing a commitment to the grantor's mission Being of a particular background (e.g. minorities, veterans, women)
