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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 7 of the best self-employed business loans
Lender | NerdWallet Rating▼ | Max loan amount▼ | Min. credit score▼ | Next steps |
---|---|---|---|---|
OnDeck - Line of credit with Fundera by NerdWallet | 5.0/5 Best for Working capital needs | $100,000 | 625 | with Fundera by NerdWallet |
Fora Financial - Online term loan with Fundera by NerdWallet | 4.5/5 Best for Bad credit | $1,500,000 | 570 | with Fundera by NerdWallet |
Giggle Finance Merchant Cash Advance with Fundera by NerdWallet | Best for Freelancers and independent contractors | $5,000 | 300 | with Fundera by NerdWallet |
Accion Opportunity Fund - Small Business Working Capital Loan | 4.6/5 Best for Traditionally underserved borrowers | $250,000 | 570 | Read Review |
SBA Microloan with Fundera by NerdWallet | Best for Startups | $50,000 | 620 | with Fundera by NerdWallet |
Bank of America Business Advantage Unsecured Term Loan | 4.8/5 Best for Established self-employed business owners | Undisclosed | 700 | Read Review |
SBA 7(a) loan with Fundera by NerdWallet | Best for Large loan amounts | $5,000,000 | 650 | with Fundera by NerdWallet |
Here are 7 of the best self-employed business loans
Best for Working capital needs
Best for Bad credit
Best for Freelancers and independent contractors
Best for Traditionally underserved borrowers
Best for Startups
Best for Established self-employed business owners
Best for Large loan amounts
I'M INTERESTED IN:
Our pick for
Working capital needs
If you need to cover day-to-day expenses, such as inventory purchases, payroll, rent or utilities, OnDeck’s business line of credit may be a worthwhile option. This line of credit provides ongoing access to working capital.
OnDeck - Line of credit
Pros
- Fast access to working capital.
- Accepts borrowers with a minimum credit score of 625.
- Streamlined application process with minimal documentation required.
- Can be used to build business credit.
Cons
- Not available in North Dakota.
- May require frequent weekly payments.
- Interest rates can be high compared with traditional lenders.
- Requires personal guarantee.
OnDeck - Line of credit
Pros
- Fast access to working capital.
- Accepts borrowers with a minimum credit score of 625.
- Streamlined application process with minimal documentation required.
- Can be used to build business credit.
Cons
- Not available in North Dakota.
- May require frequent weekly payments.
- Interest rates can be high compared with traditional lenders.
- Requires personal guarantee.
Qualifications:
- Minimum credit score: 625.
- Minimum time in business: One year.
- Minimum annual revenue: $100,000.
- No bankruptcies in the past two years.
Our pick for
Bad credit
Fora Financial can provide capital to sole proprietors and self-employed borrowers who have a minimum credit score of 570 or higher. You can use this short-term loan for managing cash flow and expenses, purchasing inventory and hiring employees, among other purposes.
Fora Financial - Online term loan
Pros
- Cash can be available quickly.
- Get a discount for prepaying.
- No collateral required.
- Low minimum credit score requirement.
Cons
- Charges a factor rate that makes it more difficult to compare costs with other lenders.
- Can’t build business credit.
- Longest loan term is 18 months.
Fora Financial - Online term loan
Pros
- Cash can be available quickly.
- Get a discount for prepaying.
- No collateral required.
- Low minimum credit score requirement.
Cons
- Charges a factor rate that makes it more difficult to compare costs with other lenders.
- Can’t build business credit.
- Longest loan term is 18 months.
Qualifications:
- In business for at least six months.
- At least $20,000 per month in revenue.
- No open bankruptcies or dismissed bankruptcies within the past year.
Our pick for
Freelancers and independent contractors
Giggle Finance offers financing geared specifically toward freelancers and independent contractors. Self-employed individuals with at least three months in operation can access funding up to $5,000.
Giggle Finance Merchant Cash Advance
Pros
- No minimum credit score requirement.
- Same-day funding available.
- Specifically designed for freelancers and self-employed individuals.
Cons
- Funding maxes out at $5,000.
- Factor rate and fee information not available on website.
Giggle Finance Merchant Cash Advance
Pros
- No minimum credit score requirement.
- Same-day funding available.
- Specifically designed for freelancers and self-employed individuals.
Cons
- Funding maxes out at $5,000.
- Factor rate and fee information not available on website.
Qualifications:
- Minimum credit score: All credit scores may be accepted (ranging from 300 to 850).
- Minimum time in business: Three months.
- Minimum annual revenue: $36,000.
Our pick for
Traditionally underserved borrowers
Accion’s small-business loans are a good option for traditionally underserved business owners. Over 90% of its client base are women, people of color and/or low-to-moderate income. This lender can also help with business training and coaching.
Accion Opportunity Fund - Small Business Working Capital Loan
Pros
- Loan amounts from $5,000 to $250,000.
- Customized loan terms.
- No prepayment penalty.
Cons
- Slower processing speed compared to online lenders.
- Not available in all U.S. states.
Accion Opportunity Fund - Small Business Working Capital Loan
Pros
- Loan amounts from $5,000 to $250,000.
- Customized loan terms.
- No prepayment penalty.
Cons
- Slower processing speed compared to online lenders.
- Not available in all U.S. states.
Qualifications:
- Minimum credit score: 570.
- Minimum time in business: 12 months.
- Minimum annual revenue: $50,000.
Our pick for
Startups
SBA microloans offer funding up to $50,000 and have more flexible qualifications than other SBA loan options. So far in fiscal year 2024, 25% of microloans were issued to startups (businesses in operation for two years or less).
SBA Microloan
Pros
- Can be used for a variety of funding purposes.
- Designed to finance traditionally underserved businesses.
- Startups and business owners with bad credit may be able to qualify.
- Competitive interest rates, low fees and long repayment terms.
- Intermediaries typically offer business training and educational resources.
Cons
- Loan amounts max out at $50,000.
- Can’t be used to pay existing debt or purchase real estate.
- Collateral is likely required.
- Slow funding timeline.
SBA Microloan
Pros
- Can be used for a variety of funding purposes.
- Designed to finance traditionally underserved businesses.
- Startups and business owners with bad credit may be able to qualify.
- Competitive interest rates, low fees and long repayment terms.
- Intermediaries typically offer business training and educational resources.
Cons
- Loan amounts max out at $50,000.
- Can’t be used to pay existing debt or purchase real estate.
- Collateral is likely required.
- Slow funding timeline.
Qualifications:
- Be a U.S. business.
- Show your ability to repay the loan.
- Personal guarantee and collateral likely required.
- Specific financial qualifications determined by individual lender.
Our pick for
Established self-employed business owners
Bank of America’s unsecured term loan offers low interest rates, starting at 8.5%. This loan is a good option for established self-employed individuals that want to make one-time, specific investments in their business, such as purchasing equipment or renovating a storefront.
Bank of America Business Advantage Unsecured Term Loan
Pros
- Bank loan with competitive interest rates.
- No collateral required.
- Bank of America’s Preferred Rewards program can offer interest rate discounts and other perks.
Cons
- Can be slow to fund.
- Prepayment fees may apply to early repayments.
- Must be an existing Bank of America customer to apply online.
Bank of America Business Advantage Unsecured Term Loan
Pros
- Bank loan with competitive interest rates.
- No collateral required.
- Bank of America’s Preferred Rewards program can offer interest rate discounts and other perks.
Cons
- Can be slow to fund.
- Prepayment fees may apply to early repayments.
- Must be an existing Bank of America customer to apply online.
Qualifications:
- Minimum credit score: 700.
- Minimum time in business: Two years.
- Minimum annual revenue: $100,000.
Our pick for
Large loan amounts
SBA 7(a) loans are an ideal option for funding business growth and expansion, as they can provide up to $5 million in capital. The majority of 7(a) loans issued thus far in fiscal year 2024 have gone to businesses with five or less employees.
SBA 7(a) loan
Pros
- Large borrowing maximums.
- Interest rates are capped.
- Long repayment terms available.
Cons
- Personal guarantee is required.
- Collateral is typically required.
- Longer processing times than online lenders.
SBA 7(a) loan
Pros
- Large borrowing maximums.
- Interest rates are capped.
- Long repayment terms available.
Cons
- Personal guarantee is required.
- Collateral is typically required.
- Longer processing times than online lenders.
Qualifications:
- For-profit U.S. business.
- Unable to access credit on reasonable terms from nongovernment sources.
- Financial qualifications determined by individual lender.
Where to get business loans for sole proprietors and self-employed individuals
Banks and credit unions
SBA lenders
Online lenders
Nonprofit and community lenders
Merchant cash advance companies
How to get a business loan if you’re self employed
- Personal and business bank statements.
- Tax forms, with Schedule C and SE included.
- 1099 forms.
- Business financial statements, such as balance sheets, profit and loss statements and cash flow statements.
Alternative funding options for self-employed individuals
Business credit cards
Personal loans
Crowdfunding
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.