The Best Small Business Loans in 2021: Boost Your Company Quickly

Overview

Invoicing and lines of credit — those are the only loans that Fundbox offers, but it’s one of the easiest ways for almost any kind of business to get funding. The company has an A+ BBB score and is known to be reliable. 

Why Fundbox is a good choice

This is the best place for small business loans if you can’t get approved for a loan anywhere else because Fundbox doesn’t have any credit score requirements. The company also approves applications fairly quickly, which is always a good thing. 

If you want to apply for invoice financing, you’ll need a minimum of $50,000 revenue and a three-month invoicing history in online bookkeeping or accounting software. QuickBooks, Xero, and Sage One are some examples of valid software. For a line of credit, you also need to be in business for at least three months and have a minimum of $50,000 in annual revenue and a checking account. 

When it comes to invoicing, your invoices will be paid back in full, and your customers won’t get contacted, so they’ll never know you’re using Fundbox. Everything is kept private, so if you have a bunch of unpaid invoices, you can cash them in for fast funding. 

Fundbox also allows you to repay all your invoice financing or lines of credit early, which saves you cash by lowering the APR of your loan.

What you need to watch out for

Since it has fairly simple small business loan requirements, almost anyone can apply. However, Fundbox does have a higher-than-average APR and funding is capped at $100,000 for a loan. You should also bear in mind that applicants with a good credit score are more likely to get approved. The company’s APR for invoice financing can range anywhere from 10.1% to 78.6%, and the APR for business lines of credit goes from 10.1% to 79.8%.

Bottom line

When it comes to business loans, compare Fundbox to BlueVine in case you like the terms but need to borrow more than $100,000. Overall, it’s a great option for a lot of businesses because it gives you a fighting chance, even if you have a bad credit score. Everything about Fundbox is aimed at offering people a lifeline to sustain their business. 

Overview

Kabbage is a great option if you’re looking for the best business loans for small business owners. Not only does this company offer lines of credit; it’s also one of the few that offer monthly payment options instead of daily or weekly ones. 

Why Kabbage is a good choice

Your business needs to at least one year old for Kabbage to consider your application, but the company makes up for this by offering loans to people with fairly low credit scores. The qualification and application process is incredibly smooth and easy, and Kabbage’s helpful customer support workers will give you step-by-step guidance if you need it. 

Kabbage’s A+ BBB score indicates that it offers some of the best small business loans online, as well as the fact that it’s trustworthy and has a long line of satisfied customers. From our experience, the people at Kabbage are transparent in their dealings, even though their APR can be on the higher side. Of course, for a business that works with high-risk customers, this is almost inevitable. 

Kabbage is ideal for small businesses that need access to working capital and need it quickly. The application process is lightning-fast and you can get approved in as little as 10 minutes. Just a few days later, you’ll have access to your cash.

What you need to watch out for

While Kabbage is one of the easiest ways to get small business loans for bad credit customers, you have to bear in mind that there are a few restrictions. Kabbage doesn’t work with customers from these industries: firearms, gambling, marijuana, lending, and finance. If you work in one of these industries, you might want to look elsewhere.

Although you get the option of making monthly payments, Kabbage will frontload your interest, which ranges from 1.5% to 10% for the first two to six months of your credit, then drops to 1.25% interest after that. If you want to apply for a line of credit that’s less than $100,000, you need to have a minimal annual revenue of $50,000. If you want to apply for a line of credit that’s over $100,000, then you need a yearly revenue of at least $1 million.

Bottom line

Overall, Kabbage has a great reputation and plenty of satisfied customers who left five-star reviews and praised their speediness and professional conduct. We recommend them to anyone who’s been having trouble finding a lending institution that will work with their business.

Overview

This California-based lender focuses on lines of credit and invoice factoring. BlueVine is one of the best lenders for small business loans if you’re looking for short-term help. There is no termination fee if you want to stop using the company’s services. BlueVine is also fully accredited with the BBB and has an A+ rating. Receiving a loan from this company is usually super easy and quick — you can get funding in as little as 24 hours after filling out a straightforward online application form. 

Why BlueVine is a good choice

If you opt to take a line of credit with BlueVine, you can expect to go up to $250,000, which you can pay back over a period of between six and 12 months. The company also has an online dashboard that can be connected to a number of accounting applications. This makes it easy to draw funds whenever you need them. There are no payment penalties or monthly maintenance fees on lines of credit here. 

BlueVine’s invoice factoring allows users to receive 85% to 95% of their total invoice amount up to $5 million. The company has the best interest rates for small business loans compared to all other online lenders, and users are satisfied with the responsiveness of BlueVine’s customer service offers and their willingness to work with any applicants. 

What you need to watch out for

One of BlueVine’s biggest flaws is that it can be difficult to hunt down the exact APR of a loan; the percentage you’ll pay generally depends on the service you opt for and your credit history. But this isn’t unusual with banks and online lenders. 

Another issue with BlueVine is that, if your application is rejected, the company usually won’t give you a reason for doing so. This makes it hard to know what went wrong or what you could potentially fix in the future. You also usually can’t borrow more than $250,000. However, if the $250,000 cap isn’t enough, you can contact a BlueVine customer support officer to ask for a customized cap. There’s no guarantee they’ll approve your line of credit, but it’s worth a try. 

Bottom line

All in all, BlueVine offers some of the best small business loans to help you secure the capital you need to operate your business smoothly. The company offers flexible payment terms, making it a great choice for young businesses in need of a bigger loan.

Overview

Rather than a full-on lender, Currency is a marketplace that connects you to other lenders who each specialize in different types of lending, mainly equipment loans. If you need low-interest business loans, this is the right place for you. This way you can easily find the kind of lender who suits your needs. 

Why Currency is a good choice

Since it offers loans of up to $2 million, Currency can fund almost any kind of equipment piece that a small business might need, especially if you need to get it as quickly as possible. That said, it usually takes up to two weeks to get approved for a loan. You have to provide three months of bank statements, as well as basic info about the line of business you’re in, your revenues, and your monthly sales. 

Equipment loans are the best alternative business loans for companies that need to buy large pieces such as tractors, x-ray machines, delivery trucks, computer servers, or commercial printers. Approval is usually fast and you get a response within minutes of applying, but sometimes the company will leave your status “pending,” which usually means you need to provide additional information. 

One of the best things about Currency is that it offers a good guarantee on the equipment you purchase. Before you close a purchase with whomever Currency matches you with, the company examines the asset to make sure it’s in perfect condition and that you’re getting what you asked for.  

What you need to watch out for

Currency does a soft pull on your credit to find your credit score and financial history as part of the underwriting process. Even the banks best known for small business loans usually do a hard pull on credit to check your viability, which can knock your score down by a few points. You don’t have to worry about that here, but bear in mind that Currency’s team also runs your business through a series of checks with Dun & Bradstreet and Tax Guard. These experts will look at your tax records and credit history. 

Once Currency’s team members have finished their checks, they’ll make a profile for your company. The profile is then compared to a series of criteria that helps them match your business with a lender that can provide the services you need. They aim to find the best possible rates so you’ll have an affordable option. 

While Currency has great conditions and gives decent rates on business finance loans for equipment, it’s not the best choice for people with low credit scores or startups that just got into business. You need to be in business for at least six months and have yearly revenue of at least $75,000 to be considered. 

Bottom line

Currency is reliable and it helps you find the best possible deal to get the equipment you need. 

Overview

This New York-based lending institution is one of the best business loan companies you can choose if you have a lower credit score and need a term loan or a line of credit to get you going. With an A+ BBB score, OnDeck is a dependable ally in your quest for cash to fund your business endeavors. 

Why OnDeck is a good choice

The people at OnDeck share their extensive experience with their customers and the company itself has much looser restrictions than most banks. While banks often want applicants with credit scores of at least 720, OnDeck accepts those with a score of at least 600, though most applicants have scores between 680 and 720. You can also apply after just one year in business, while banks usually require between two and four years of operational capacity before even considering you.  

OnDeck is one of the best business loan providers because it offers cheaper loans to return customers. There’s an origination fee that ranges between 2.5% to 4%, but it drops down to between 1.25% and 3% for your second loan and between 0% and 3% on your third loan.  

OnDeck is similar to Kabbage in that they both have foolproof application processes and approve loans quickly. Getting a provider for one of OnDeck’s top business loans can also help you build your credit score. Since the company offers reports about your payment activity to business credit bureaus, you can boost your score by regularly making your payments on time. Of course, if you keep missing payments it could damage your score. 

What you need to watch out for

OnDeck’s APR is pretty standard for the lending industry, though it can get expensive if you’re taking out a term loan. When it comes to lines of credit, the APR ranges between 13.99% and 63%, while for a term loan it can go up to 99%. OnDeck doesn’t have payment penalties, but paying early doesn’t save you any cash because you need to pay a fixed amount every month.  

One thing to keep in mind is that, while OnDeck offers some of the best business loans and doesn’t require collateral, it requires a lien on all business assets. You’ll have to sign a personal guarantee that allows the company to take lien should you fail to repay your debt. 

Bottom line

We recommend OnDeck to businesses that have a yearly revenue between $100,000 and $5 million, except businesses that do the following: fortune-telling/horoscopes, gambling, drug dispensaries, religious and civic organizations, firearms, adult entertainment, car dealers, and money service businesses. 

Overall, OnDeck is one of the best lenders for small business loans. 

Overview

This is another online marketplace that helps connect top business loan lenders with SMEs to give them the best possible loan rates. They offer term loans and equipment loans, so if you need to hire new staff, purchase manufacturing equipment, or expand your business in other ways, this is a great option. 

Why Funding Circle is a good choice

Funding Circle can beat even the best bank for small business loans because it offers fairly competitive interest rates and its APR ranges from 11.67% to 36%. This isn’t quite as good as SBA loans, but if you’ve been rejected for an SBA loan, this company can step in. Another great thing is that it usually doesn’t take more than one day to get approved and only three days to get your funding. Compared to SBA loans, which can take two or three months to come through, it’s a much better option if you need cash quickly. 

Funding Circle’s small business loan requirements are pretty transparent, and one of the brand’s unique selling points is its online resource center, which features tips and educational videos from financial experts. You can also contact the platform’s loan specialists during business hours for more in-depth advice.

What you need to watch out for

Funding Circle isn’t for startups, but rather established businesses that have some experience under their belt. While the minimum requirement is two years in business, the average Funding Circle client has been operating for 11 years. The company doesn’t have a minimal annual revenue requirement, though it mostly works with businesses that have established themselves to be profitable. 

Compared to other lenders on our list, Funding Circle has high application standards. It offers some of the best cash flow loans for small businesses out there, but it only works with experienced business owners with good revenue and good growth trajectory. The company also asks for a lien on all your business assets and doesn’t often approve of applicants with a personal credit score that’s lower than 650. You’ll have to sign a personal guarantee during the application process. 

You should also be aware of Funding Circle’s one-time fee, which covers the cost of services for processing the loan. This cost ranges between 0.99% and 6.99% of the whole loan amount. 

Bottom line

Funding Circle is one of the most transparent finance and loan companies on the market, and we recommend it because of its low-interest rates, lack of predatory behavior, and professional team of customer service agents who go out of their way to help their customers. The ease of application is also a big bonus, as is the speed of approval. Overall, Funding Circle is a great choice for established companies looking to make their next big purchase or upgrade their business. 

We have analyzed Funding Circle’s business lending options in more detail in a separate review.

Overview

Credibility Capital specializes in providing short and medium-term loans for small-to-medium enterprises. It is a good choice because it offers decent rates coupled with high-quality service. 

Why Credibility Capital is a good choice

Credibility Capital offers some of the best small business loans on the market because of the flexibility of its underwriting process. This company looks at the overall balance of your business instead of drawing hard lines and writing applications off because of a single business metric. There are also no prepayment fees, so you can reduce the APR if you pay off your loan early.

Besides the basics like a copy of your driver’s license or an ID card, you’ll have to show your bank statements for the past six months, two years of personal tax returns, two years of business tax returns, a voided business check, your most recent profit and loss statement, a recent balance sheet, and a business debt schedule. The company will consider your application carefully, but you’ll get a fairly quick response and can usually access your funds within a week.

Filling out the online application form is a quick and easy process that only takes about 15 minutes. Once you submit the application, Credibility Capital will do a soft pull of your credit and offer you a response fairly quickly. A company representative will tell you what kind of documentation you need to provide, then you can upload the documents to the portal and have them reviewed. If everything goes well, Credibility Capital will do a hard pull of your credit, then offer you some of the best business loans on the market. 

What you need to watch out for

The trickiest thing about borrowing from this company is that you’ll need to put a lot up as collateral. Every person who owns more than 25% of the business needs to sign a personal guarantee, and you’ll also need to make a UCC-1 filing and put forward your entire business as collateral. 

Bottom line

Credibility Capital is one of the best small business loan lenders out there for high-credit score businesses. The company deals fairly and transparently with its customers, although it sets the bar to entry high.