Best 10 Business Loan Providers in 2021

US SBA (Small Business Administration) loans are perhaps the most popular business loans in the market. SBA partially backs loans from $5,000 to $5 million to aid small businesses. Although the US Government supports the loans, they are offered by commercial banks and lenders who operate online. You can apply for SBA business loans for whatever purpose. Because of their government backing, these loans attract a lower APR and long repayment periods as lenders have confidence that the loan will be repaid in time. There are different types of SBA loans. Microloans offer loans of up to $50,000 while SBA 7(a) covers broader purposes. CDC/504 is ideal for asset financing purposes, like purchasing business equipment. SmartBiz provides different SBA loan options through its online website. Some of their loans include SBA working loans, commercial real estate and debt refinancing among others

Funding Circle is among the best overall lenders offering business loans. This peer-to-peer small business loan marketplace allows you to borrow from $25,000 to $500,000 and repay over a period of 6 months to 5 years. They charge low-interest rates that start from 4.99% over six months for business owners with good credit, to 27.79% over five years for those with low credit. Origination fees also vary depending on your credit score. As a traditional business term loan, you do not require any collateral to qualify. The lender reviews your credit score, annual/monthly revenue, and overall financial health.

Kabbage is arguably the best loan for a Business Line of Credit type of loan. They are also touted as the best loan offer for those who seek quick disbursement. Business Line of Credit loans are more like credit card loans, but they are also available to businesses with a low credit score. One can apply for the maximum amount of loan they can take on their card. The more you pay on time, the higher the amount you will be able to access. Kabbage offers loans between $2,000 and $250,000 and can verify your application details and approve your loan within 10 minutes. Kabbage offers its loans online and also allows same-day disbursement. No origination fees are charged, but every monthly installment carries a charge, which can be anything from 1.5% to 10%. Loans taken via Kabbage should be paid within 6 months or 12 months as disclosed in the terms.

Invoice Financing is a type of business loan that allows you to borrow the maximum amount for the invoices you are waiting to be paid on. You can then repay the loan once your clients pay your invoices. Another variant is invoice factoring, which involves selling your invoices at a discount. FundBox is one of the popular lenders offering both invoice financing and line of credit loans. Their invoice financing allows you to borrow from $1,000 to $100,000, which should be paid between 12 to 24 weeks. Loan funds are disbursed within the shortest time possible, and you can receive your loan in the next business day.

Credibility Capital is another lender that provides business term loans that are paid within a specified time. However, this lender suits a credible, financially healthy business with a credit score of at least 650.They offer loans from $10,000 to $400,000 paid over 1, 2, or 3 years. All loans carry a one-time origination fee of 3%, interest rates range from 8% to 20% with no monthly payment fees charged. Credibility Capital only awards loans to companies that have been in business for at least 24 months.

Traditional business loans can be used to buy equipment. However, it is recommendable to take a dedicated equipment financing loan for this purpose. These loans use the equipment purchased as collateral, and you can continue using your gear as you pay the loan. They also attract lower APRs between 8% and 30%. BlueVine is a leading lender that offer equipment financing loans. You can borrow from $5,000 to $2.5 million. They also offer invoice factoring and line of credit loans. The loan amount you are eligible for depends on the value of the equipment you want to purchase. You can borrow up to 100% of the cost.

The Lending Club is a vast marketplace where you can get your business funded for any purpose. It is one of the largest and oldest of its kind. You can borrow from $5,000 to $300,000 with repayment terms of 1-5 years. The lending club charges interest of 9.7% to 35.7% depending on your credit score. Origination fees also vary from 1.99% to 8.99%. Your business must have at least $50,000 in annual sales and must have been in operation for the past 12 months.

Merchant Cash Advance loans are another type of business loan that works in a non-traditional way. Rather than paying a fixed interest rate for a given time, these loans are offered in exchange for a set percentage of daily credit card transactions. This means the loan has no fixed rate or repayment period. It all depends on how much sales you can make daily. The percentage charged on credit transactions ranges from 1.14% to 1.48%. This can translate into around 15% APR but can go into triple digits depending on the loan and transactions paid. Torro is the popular lender offering merchant cash advance loans for both new startups and existing companies. They also provide working capital loans and traditional business term loans. The approval process is fast and efficient with loans funded within 48 hours of application. You can borrow up to $250,000.

American Express is another reputable lender known for its business credit card products. They are one of the options you have if you do not want to pay the high origination fees other lenders impose on business loans. You can borrow from $3,500 to $50,000 and pay within 12, 24, and 36-month terms. American Express charges fixed interest rates that range from 6.98% to 19.97% depending on the loan amount and conditions. Other loan offers include merchant financing and working capital loan whose limits are set at $2 million and $750,000 respectively.

Kiva is one of the top choices if you are looking for startupfunding and microloans for your business. Most lenders require proof of operation, which makes it difficult to find loans to finance a new business. Kiva is among the few reliable lenders that offer microloans designed to help new business owners get off the ground. You can borrow up to $10,000, and while this is a small amount, no interest is charged. With repayment periods of up to 36 months and no credit checks, Kiva is one of the best lenders if you want to build business credit. However, they do not lend you directly. Kiva uses individual lenders in its extensive network of over 1.6 million investors. You also need social underwriting to qualify for a loan.