How much do you need?
We’ll start with a brief questionnaire to better understand the unique needs of your business.
Once we uncover your personalized matches, our team will consult you on the process moving forward.
Here are 17 small-business lenders
Lender | NerdWallet Rating▼ | Max loan amount▼ | Min. credit score▼ | Next steps |
---|---|---|---|---|
SBA 7(a) loan with Fundera by NerdWallet | Best for SBA loan lenders | $5,000,000 | 650 | with Fundera by NerdWallet |
SBA Express loan with Fundera by NerdWallet | Best for SBA loan lenders | $500,000 | 650 | with Fundera by NerdWallet |
Bank of America Business Advantage Unsecured Term Loan | 4.8/5 Best for Business bank lenders | Undisclosed | 700 | Read Review |
Wells Fargo BusinessLine® Line of Credit | 4.9/5 Best for Business bank lenders | $150,000 | 680 | Read Review |
Chase - Business line of credit | Best for Business bank lenders | $500,000 | 700 | Read Review |
Bluevine - Line of credit with Fundera by NerdWallet | 5.0/5 Best for Online small-business lenders | $250,000 | 625 | with Fundera by NerdWallet |
Fundbox - Line of credit | 4.9/5 Best for Online small-business lenders | $150,000 | 600 | Read Review |
OnDeck - Online term loan with Fundera by NerdWallet | 4.7/5 Best for Online small-business lenders | $250,000 | 625 | with Fundera by NerdWallet |
Headway Capital - Line of credit with Fundera by NerdWallet | 4.7/5 Best for Online small-business lenders | $100,000 | 625 | with Fundera by NerdWallet |
American Express® Business Line of Credit | 4.6/5 Best for Online small-business lenders | $250,000 | 660 | Read Review |
Funding Circle - Online term loan with Fundera by NerdWallet | 4.5/5 Best for Online small-business lenders | $500,000 | 660 | with Fundera by NerdWallet |
Fora Financial - Online term loan with Fundera by NerdWallet | 4.5/5 Best for Online small-business lenders | $1,500,000 | 570 | with Fundera by NerdWallet |
AltLINE - Invoice Factoring | 4.4/5 Best for Online small-business lenders | $10,000,000 | 300 | Read Review |
Triton Capital - Equipment financing with Fundera by NerdWallet | 4.1/5 Best for Online small-business lenders | $250,000 | 575 | with Fundera by NerdWallet |
JR Capital Equipment Financing with Fundera by NerdWallet | 4.1/5 Best for Online small-business lenders | $10,000,000 | 620 | with Fundera by NerdWallet |
Accion Opportunity Fund - Small Business Working Capital Loan | 4.6/5 Best for Microlenders | $250,000 | 570 | Read Review |
SBA Microloan with Fundera by NerdWallet | Best for Microlenders | $50,000 | 620 | with Fundera by NerdWallet |
Here are 17 small-business lenders
Best for SBA loan lenders
Best for Business bank lenders
Best for Online small-business lenders
Best for Microlenders
I'M INTERESTED IN:
Our picks for
SBA loan lenders
SBA loans offer low interest rates and long repayment terms. These loans are issued by banks, credit unions and other participating financial institutions and partially guaranteed by the U.S. Small Business Administration. SBA loan products can be used for working capital, construction, commercial real estate and more.
SBA 7(a) loan
Max loan
$5,000,000
Min. Credit score
650
Apr range
11.50-15.00%
SBA Express loan
Max loan
$500,000
Min. Credit score
650
Apr range
11.50-15.00%
Our picks for
Business bank lenders
Bank lenders typically offer the most competitive interest rates and repayment terms on small-business loans — but require that you meet strict criteria to qualify. Bank lenders can offer various types of business loans, including term loans, lines of credit and equipment financing.
Bank of America Business Advantage Unsecured Term Loan
Max loan
Undisclosed
Min. Credit score
700
Wells Fargo BusinessLine® Line of Credit
Max loan
$150,000
Min. Credit score
680
Apr range
10.25-18.25%
Chase - Business line of credit
Max loan
$500,000
Min. Credit score
700
Our picks for
Online small-business lenders
Online business lenders can offer a variety of different loan types with faster funding times and more flexible qualification requirements than bank or SBA lenders.
Bluevine - Line of credit
Max loan
$250,000
Min. Credit score
625
Apr range
20.00-50.00%
Fundbox - Line of credit
Max loan
$150,000
Min. Credit score
600
Apr range
36.00-99.00%
OnDeck - Online term loan
Max loan
$250,000
Min. Credit score
625
Apr range
27.20-99.90%
Headway Capital - Line of credit
Max loan
$100,000
Min. Credit score
625
Apr range
35.00-80.00%
American Express® Business Line of Credit
Max loan
$250,000
Min. Credit score
660
Funding Circle - Online term loan
Max loan
$500,000
Min. Credit score
660
Apr range
15.22-45.00%
Fora Financial - Online term loan
Max loan
$1,500,000
Min. Credit score
570
AltLINE - Invoice Factoring
Max loan
$10,000,000
Min. Credit score
300
Triton Capital - Equipment financing
Max loan
$250,000
Min. Credit score
575
Apr range
5.99-34.99%
JR Capital Equipment Financing
Max loan
$10,000,000
Min. Credit score
620
Apr range
6.99-18.00%
Our picks for
Microlenders
Microlenders are usually nonprofit or local organizations that focus their lending efforts on businesses in their local communities. These lenders provide smaller-sized loans and business training to borrowers who may not qualify for other options.
Accion Opportunity Fund - Small Business Working Capital Loan
Max loan
$250,000
Min. Credit score
570
Apr range
8.49-24.99%
SBA Microloan
Max loan
$50,000
Min. Credit score
620
Apr range
8.00-13.00%
How to choose a small-business lender
- If you want the least expensive loan: A bank will likely offer the lowest interest rates, but you’ll need to be able to meet tough financial qualifications. Banks can also offer a variety of types of business loans, as well as longer terms than some online lenders.
- If you can’t qualify with a bank: Start with the SBA loan program. SBA loans have competitive rates and long terms, and eligibility criteria can be a little more flexible than bank requirements. However, you’ll still need good credit and strong revenue to qualify, and the application process can be complex — so online business lenders are an alternative option.
- If you need a loan fast: Online lenders will be your top option. Some online lenders can offer funding in as little as 24 hours — although speed can come at a cost of higher interest rates.
- If customer service is a priority: Although a variety of lenders have representatives to help you through the application process, small-business borrowers report having a higher level of overall satisfaction with credit unions and community banks .
- If you’re a new business or have bad credit: Some online lenders, as well as nonprofit lenders, may have more flexible requirements that can accommodate newer businesses or those with bad credit. These businesses may also consider alternative types of funding, such as small-business grants.
What is a small-business lender?
Types of small-business lenders
Government small-business lenders
Credit union and bank small-business lenders
Online small-business lenders
Nonprofit and microlenders
Small-business lender alternatives
- Angel investors or venture capital firms. Instead of going into debt, you could opt for forms of equity financing, which allow you to trade ownership shares in your business for capital. Angel investors are usually wealthy individuals who invest their own money into a business idea, whereas venture capitalists typically invest on behalf of a firm. Equity financing is typically only an option for high-potential, fast-growing companies, and it can cost you control of your business if you dilute your ownership too much.
- Self-funding. If you have the means and want to avoid debt and ownership dilution, you may opt to fund your business yourself. You can use personal savings (sometimes referred to as bootstrapping), or tap into your retirement savings tax free with Rollovers as Business Startups (ROBS). With self-funding, you will likely save money on interest and fees; however, you risk your personal savings or retirement fund if your business fails.
- Friends and family loans. If you have friends and family who are willing and able to support your business with a loan, you may be able to save money on interest, and get funding quickly. Friends and family loans likely won’t help you build business credit, and you may risk putting a strain on personal relationships. If you decide to go this route, put the agreement in writing to avoid personal disputes.
Frequently asked questions
Methodology
Wondering if you qualify?
It’s possible to get a business loan even if you have bad credit. Bad-credit business loans are available from alternative sources, like online or nonprofit lenders.