Best 7 Small Business Loans Compared 2020

Lendio is not your typical small business loan lender. Rather, it is a business credit marketplace with one of the most diversified types of loans we have come across so far. Here you can apply for merchant cash advances, different types of credit advances and unspecified short and medium-term loans.

It connects you to a pool of lenders who vet your business and check on your personal credit score to determine the interest rate at which they should advance you the loan. And most of these are willing to advance your credit even when you have a credit score of 550.

One of the most interesting features about Lendio is that their services are free and lets you prequalify for different types of loans. It also presents you with multiple offers from different lenders and gives you a chance to choose the terms and interests you are most comfortable with.

Prequalification requirements here include:

• A credit score of above 550
• Must have been in business for more than six months
• Have cashflows of above $10,000 per month

LendingClub is a peer to peer lending site that specializes in advancing loans to small and medium enterprises. Here you can borrow between $5,000 and $500,000 and pay back within one or five years.

The loans offered on this peer-to-peer lending site are fixed rate with rates ranging from 4.99% to 29.99% depending on a host of factors like your credit score, business revenues, and repayment duration.

Some of the most unique features about the P2P service provider include the fact that you don’t need collateral for loans less than $100,000. They will also match you with client advisor to help you navigate through the site and work around the necessary loan requirements that speed up the loan review process. Ideally, funding here may take between one and five days.

Loan qualification requirement:

• Must have been in business for at least 12 months
• Loan applicant must own at least 20% of the business
• Minimum annual revenue of $50,000
• A personal credit score of 600+

The most interesting thing about OnDeck is the fact that loan processing here may take less than a day. You are also exposed to different types of both short and long term business loans of between $5,000 and $500,000. Either of these loans is advanced at a fixed annual interest rate that starts from 9.99% or at an annual percentage rate that starts from 13.99%. The loan term ranges from 3 to 36 months.

OnDeck makes it possible to automate loan repayments into “micropayments” that are paid in daily or weekly in a bid to minimize defaulting cases. Their loan application process is also rather straightforward as you can apply online or over the phone and have the answer to whether you qualify for the loan or not in minutes.

What do you need to qualify for an OnDeck small business loan?

• The business owner must have a credit score of 500+
• Have been in business for more than 12 months
• Post n annual minimum revenue of $100,000

If you are looking for flexibility, you will like the PayPal-owned Loan Builder, an online based small business loan lender. Unlike most other small business loan lenders on this list that have fixed minimum and maximum loan limits and fixed rates, loan builder lets you customize both the loans amounts and interests.

As the name suggests Loan Builder is an online platform where you can ‘build’ your loan to a predetermined limit by constantly tweaking the amounts required and examining how it affects both the interest rates and repayment terms.

Loan Builder’s borrower requirements:

• A business owner must have a credit score of 550+
• Your business must be located in the United States
• Biased towards PayPal Businesses that have been in operation for more than 9 months
• Reported a business revenue of $42,000

Broad qualification requirements, competitive loan repayment terms, and attractive interest rates are some of the most unique factors about Funding Circle’s small business loans. Here, a small business owner can access loans of between $25,000 and $500,000 and pay back within 6 months and 5 years. Interest rates on loans here start from 4.99% but can reach the highs of 27.99% per annum. You should also note that the peer to peer lender doesn’t penalize early payments but imposes a 5% charge on late payments.

Like most other peer-to-peer lenders, Funding Circle is an online based loans marketplace where you get to submit a loan request that is then funded by a pool of accredited lenders. It may, therefore, take less than 24 hours or a few days to fully fund your request depending on such factors as your credit score and business turnover.

What are funding Circle’s borrower requirements?

• You need a credit score of 620+
• Your business must have been in operation for more than two years
• No criminal history or record of bankruptcy

First off, Kabbage does not review your credit score when making the decision on whether to advance you a loan or in determining the interest rate. It, therefore, doesn’t maintain a minimum credit score on its list of borrower requirements and is thus best suited for business owners with incredibly low scores.

Here you can apply up to $250,000 and choose a 6-, 12-, and 18-month repayment plan. Interests range from 1.5% to 10% of the principal amount and are dependent on such factors as the amount of loan and the preferred repayment period.

What are Kabbage’s borrower requirements?

• Business must have been in operation for the past 12 months
• Post annual revenues of $50,000 or $4,200 per month for the past three months

FundBox remains one of the most recent entrants into the world of small business financing and caters for the low volume businesses. Like Kabbage, FundBox doesn’t review your credit score when you apply for a loan. They, therefore, don’t have a minimum credit score that you must fulfill before accessing loan facilities and neither do they use it as a base to determine interest rates. Here you can borrow between $1,000 and $100,000 and pay back in 12 or 24 weeks.

The interests charged on Kabbage’s platform range from 4.66% to 8.99% on each weekly payment. More of its rather unique factors include what their website refers to as lightning speed loan application process with the promise of getting a response about your loan application request in less than three minutes and full funding in less than 24 hours.

FundBox borrower requirements

• Business must have posted minimum annual revenue of $25,000
• Must have been in operation for the past six months