Disclaimer: Information in the Latest News is provided for general information only, does not constitute financial advice, and does not necessarily describe Biz2Credit commercial financing products. In fact, information in the Latest News often covers financial products that Biz2Credit does not currently offer.

At some point, most entrepreneurs need small business financing to grow their businesses. For most, that means exploring small business loan options. There are many types of small business loans that can help businesses navigate short-term challenges, invest in growth and expansion, and much more.

Whether you’re interested in increasing cash flow immediately or you’re thinking ahead, knowing the top small business lenders will help you prepare your small business for the future. The best banks for small business lending have rigorous qualification requirements and may not be good choices for new businesses, businesses that need money fast, or business owners with bad credit. However, many of the top business loan lenders are alternative, online-based lenders.

Here, we break down some of the top small business lenders you can find online.

In this article:

• Understand what to look for in a small business lender.
• Learn why online lenders can be a strong alternative to traditional business lenders.
• Learn more about the top small business lenders, including Biz2Credit, On Deck, Bluevine, and more.

What to Look for In a Small Business Lender

Small business owners have many choices when it comes to the best business lending companies. The right option for your small business — whether it’s a bank or alternative lender — comes down to your business needs and financial situation. For instance, the best banks for U.S. Small Business Administration (SBA) loans are typically not the best lenders for merchant cash advances (MCAs) or other forms of fast funding.

Generally speaking, small business owners should weigh the following factors when determining the top small business lenders for them:

• Eligibility requirements: Term loans and SBA loans from traditional banks tend to have stricter eligibility requirements, including a strong credit history and at least two years in business, which makes them poor options for business owners with bad credit or startups.
• Interest rates: The higher the fixed-rate interest, the more you’ll pay for the loan in the long-term, so finding the lower interest rates is always preferred.
• Max amounts: Different lenders have different maximum loan amounts depending on the loan type.
• Business needs: Whether you’re looking to make a down payment on a commercial property, seeking an equipment loan, or you want a lump sum payment to invest in many aspects of the business, different loan types are tailored towards different business plans.
• Repayment terms: Finding a repayment schedule that works for your business is crucial. If you don’t want to make weekly payments on a loan, you shouldn’t go with a lender that insists on those terms.
• Funding speed: Online lenders tend to have a significant advantage over traditional lenders in funding speed, with companies like Biz2Credit able to approve and send funding quickly
• Penalties and guarantees: Many lenders may require you to provide a personal guarantee on loans, which makes your personal assets vulnerable if your business fails to repay the loan. Likewise, some loans also have prepayment penalties, which is a drawback if you start earning greater profits and don’t want to pay interest for the entire loan term.

Comparing Top Small Business Alternative Lenders

There are thousands of banks and credit unions around the country and many choices in your neighborhood. However, the best small business loans may come from alternative lenders you know less about. We break down some of the top small business lenders below.

OnDeck

OnDeck is an online lender that prides itself on a fast application process that can be completed in as little as ten minutes. It offers both business term loans and business lines of credit to qualifying businesses and can assess eligibility without making a hard credit pull or strict perusal of bank statements. If approved, same-day funding is available in the form of a lump sum payment.

Funding amounts:

• Term loans: $5k - $250k
• Credit limits: $6k - $100k

Minimum FICO credit score: 625

Repayment terms:

• Term loans: Up to 24 months
• Credit limits: 12, 18, or 24 months

Bluevine

Bluevine offers a variety of loan programs for small business owners. In addition to small business loans and lines of credit, Bluevine also offers a business credit card, checking account, and integrated business tools designed for startups, small businesses, and the self-employed. It’s a robust online solution for entrepreneurs looking for comprehensive financial and business support that doesn’t require financial statements and tax returns to get approved. If approved, you can receive upfront funding on the same business day.

Funding amounts:

• Term loan: Up to $500k
• Credit line limits: Up to $250k

Minimum FICO credit score: 625

Repayment terms:

• Term loans: Up to 24 months
• Credit limits: Monthly

Funding Circle

Funding Circle is an alternative lender that functions more like a bank than most online lenders. It has higher qualification requirements than most online lenders, including excellent credit, two years in business, and $50,000 in annual revenue. Likewise, the minimum loan amount is $25,000, making it more suitable for established businesses ready to grow in specific ways, like financing equipment or inventory acquisitions.

Funding amounts: $25k - $500k

Minimum FICO credit score: 660

Repayment terms: 6 months - 7 years

Credibly

Credibly offers a diverse range of small business loans, including:

• Term loans
• Business lines of credit
• Working capital loans
• Merchant cash advances (MCAs)
• Equipment financing
• SBA loans
• Direct business lending

The company aims to work with businesses to provide financing options for their unique business needs, with funding turnaround under 24 hours for some loan types and flexible repayment terms. It’s one of few alternative lenders to offer SBA loans and even has a small business grant program to help businesses and nonprofits take advantage of federal, state, and local funding solutions. It also has one of the lowest credit score requirements among alternative lenders, making it a good choice for business owners lacking creditworthiness.

Funding amounts:

• Term loans: Up to $10M
• Business lines of credit: Up to $600k
• Working capital loans: Up to $600k
• Merchant cash advances (MCAs): Up to $600k
• SBA loans: Up to $5M
• Direct business lending: Up to $600k

Minimum FICO credit score: 500

Repayment terms:

• Term loans: Up to 10 years
• Business lines of credit: 3 - 24 months
• Working capital loans: 6 - 24 months
• Merchant cash advances (MCAs): 3 - 24 months
• SBA loans: Up to 10 years
• Direct business lending: 3 - 24 months

Fundbox

Unlike other alternative lenders, Fundbox focuses solely on working capital loans delivered via business lines of credit. This makes it a compelling option for small businesses with short-term business goals or who are looking to consolidate debt. Qualification requirements are somewhat stricter, however, with a minimum credit score of 600 and minimum annual revenue of $100,000.

Funding amounts: Up to $150k

Minimum FICO credit score: 600

Repayment terms: 12 or 24 weeks

National Funding

National Funding offers short-term and long-term small business loans, working capital loans, equipment financing and leasing, and more financing options. While it offers a streamlined application process and personalized loan support, National Funding requires a minimum of $250,000 in annual revenue, making it better for medium-sized businesses than truly small ones. You’ll also need a business bank account to receive business funding.

Funding amounts:

• Term loans: $5k - $500k
• Equipment financing: Up to $150k

Minimum FICO credit score: 660

Repayment terms: Up to 5 years

Biz2Credit

Biz2Credit offers a variety of loan and funding products, including term loans, commercial real estate loans, , and revenue-based financing. The company has helped tens of thousands of small businesses get access to more than $8 billion in funding, with solutions that work for businesses.

Our most popular product, revenue-based financing, allows small businesses to get access to funds fast in exchange for future revenues, rather than interest-based debt. That means that your business won’t be saddled with a monthly payment; you’ll pay a percentage of revenues up to a maximum amount.

Biz2Credit offers fast funding options —  for qualified borrowers and an easy, streamlined process that will let you focus on what you’ll do with the money rather than how to get it.

Funding amounts: $25k - $6M

Minimum FICO credit score:

• Revenue-Based Financings: 525
• Term loans: 650

Repayment terms: 12-36 months for term loans

Conclusion

The top small business lenders for you may not be the big banks and credit unions. Rather, there are many alternative lenders that offer advantages over traditional financial institutions, including faster funding times, flexible repayment terms, and more creative funding solutions.

FAQs

Who are the top small business lenders?

The top small business lender for you may not be the same as it is for another business. That said, some of the leading alternative small business lenders include Biz2Credit, On Deck, and Bluevine.

What does a small business need to get a loan?

To get a term loan from a traditional lender, a small business owners needs a strong personal credit score (usually 600 at a minimum), strong annual or monthly revenues, and at least two years in business. Alternative lenders have more flexible qualification requirements, making them more appealing for startups and business owners with bad credit.

How hard is it to get a small business loan?

For small business owners with a good credit score, getting a small business loan isn’t difficult at all. There are many options available online that can process loan applications and provide funding in as little as 24 hours.

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