Best Small Business Loans of July 2025
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best small business loans: More details
U.S. Small Business Administration: Best for businesses that can’t qualify for bank loans
SBA 7(a) loans offer favorable rates and terms. These government-guaranteed loans can be used for large and long-term funding purposes.
» MORE: NerdWallet’s guide to SBA loans Low interest rate
SBA 7(a) loan
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Max loan amount
$5,000,000
Min. credit score
650
Min. interest rate
10.5%
Term length
Up to 25 years
Pros
- Large borrowing maximums.
- Interest rates are capped.
- Long repayment terms available.
Cons
- Collateral is typically required.
- Longer processing times than online lenders.
Pros
- Large borrowing maximums.
- Interest rates are capped.
- Long repayment terms available.
Cons
- Collateral is typically required.
- Longer processing times than online lenders.
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Fora Financial: Best for bad credit business loans
It can be more difficult to get a business loan with bad credit, but Fora Financial is willing to work with borrowers who have a personal credit score of 570 or higher.
» MORE: Best bad credit business loans
Fora Financial - Online term loan
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Max loan amount
$1,500,000
Min. credit score
570
Term length
4 to 18 months
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.
- Charges an origination fee.
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.
- Charges an origination fee.
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Headway Capital: Best for startups
Headway Capital can provide new entrepreneurs with a flexible business line of credit. You only need a minimum of six months in business to qualify.
» MORE: Compare the best startup business loans
Headway Capital - Line of credit
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Max loan amount
$100,000
Min. credit score
625
Min. interest rate
35%
Term length
12 to 24 months
Pros
- Flexible qualification requirements.
- No prepayment penalties.
- Funds available by next business day after approval.
Cons
- Most borrowers are subject to a 2% draw fee.
- Not available in all U.S. states.
Pros
- Flexible qualification requirements.
- No prepayment penalties.
- Funds available by next business day after approval.
Cons
- Most borrowers are subject to a 2% draw fee.
- Not available in all U.S. states.
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Bluevine: Best for flexible financing
Bluevine’s business line of credit offers greater flexibility than a term loan — allowing you to tap into a credit line and pay interest on only the portion of money you borrow. This credit line is a good source of working capital for a wide variety of businesses.
» MORE: Guide to best business lines of credit May fund quickly
Bluevine - Line of credit
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Max loan amount
$250,000
Min. credit score
625
Min. interest rate
14%
Term length
Up to 6 months
Pros
- Cash can be available within 12 to 24 hours.
- Can be used to build business credit.
- Low minimum credit score requirement.
Cons
- Requires weekly payments.
- Not available in North Dakota, South Dakota or Nevada.
- Rates can be high compared with traditional lenders.
Pros
- Cash can be available within 12 to 24 hours.
- Can be used to build business credit.
- Low minimum credit score requirement.
Cons
- Requires weekly payments.
- Not available in North Dakota, South Dakota or Nevada.
- Rates can be high compared with traditional lenders.
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iBusiness Funding: Best for long repayment terms
iBusiness Funding offers repayment terms up to seven years — which can give you more time to pay and lower monthly payments than shorter-term loans. This online lender can also issue funding more quickly than conventional business lenders.
» MORE: Best long-term business loans May fund quickly
iBusiness Funding - Online term loan
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Max loan amount
$500,000
Min. credit score
660
Min. interest rate
15.22%
Term length
6 months to 7 years
Pros
- Cash can be available within two business days.
- Competitive rates among online lenders.
- Terms up to seven years.
- iBusiness Funding also offers SBA loans up to $5 million.
Cons
- Charges an origination fee.
- Must be in business for a minimum of 24 months.
- Minimum credit score is higher than some other lenders.
Pros
- Cash can be available within two business days.
- Competitive rates among online lenders.
- Terms up to seven years.
- iBusiness Funding also offers SBA loans up to $5 million.
Cons
- Charges an origination fee.
- Must be in business for a minimum of 24 months.
- Minimum credit score is higher than some other lenders.
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OnDeck: Best for covering short-term expenses
OnDeck’s term loan is a good option for covering short-term costs, such as buying equipment or inventory, purchasing furniture and supplies and paying utilities. OnDeck also has flexible qualification requirements — making it a worthwhile choice for businesses that can’t qualify for a bank or SBA loan.
» MORE: Best short-term business loans May fund quickly
OnDeck - Online term loan
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Max loan amount
$250,000
Min. credit score
625
Min. interest rate
31.3%
Term length
18 to 24 months
Pros
- Cash can be available within the same business day (does not apply in California or Vermont).
- Accepts borrowers with a minimum credit score of 625.
- Streamlined application process with minimal documentation required.
- Can be used to build business credit.
Cons
- Cannot fund North Dakota-based businesses.
- Requires frequent (daily or weekly) repayments.
- Interest rates can be high compared with traditional lenders.
- Charges origination fee.
Pros
- Cash can be available within the same business day (does not apply in California or Vermont).
- Accepts borrowers with a minimum credit score of 625.
- Streamlined application process with minimal documentation required.
- Can be used to build business credit.
Cons
- Cannot fund North Dakota-based businesses.
- Requires frequent (daily or weekly) repayments.
- Interest rates can be high compared with traditional lenders.
- Charges origination fee.
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Bank of America: Best for well-established businesses
Bank of America’s unsecured business term loan offers low interest rates and competitive repayment terms. It’s well-suited for business owners who have been in operation for a couple years and have strong personal credit.
» MORE: Best banks for small-business loans
Bank of America Business Advantage Unsecured Term Loan
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Max loan amount
Undisclosed
Min. credit score
700
Term length
12 months to 5 years
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.
- Charges an origination fee.
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.
- Charges an origination fee.
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American Express Business Blueprint™: Best for low-revenue businesses
The American Express® Business Line of Credit can offer working capital to businesses that are still growing their revenue. You may be able to qualify with an average monthly revenue of at least $3,000.
» MORE: Compare the best business loans for companies with low revenue
American Express® Business Line of Credit*
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Max loan amount
$250,000
Min. credit score
660
Term length
6 to 24 months
Pros
- Streamlined application process with minimal paperwork.
- Financing from $2,000 to $250,000 available.
- Accepts borrowers with a minimum FICO score of at least 660 at the time of application (though the required FICO score may be higher based on your relationship with American Express, credit history, and other factors).
- Monthly repayment schedule (as opposed to daily or weekly).
- No prepayment penalties, account maintenance fees or draw fees.
Cons
- Must have online checking or PayPal account to verify cash flow.
- Complex monthly fee structure makes it difficult to compare costs to other lenders.
Pros
- Streamlined application process with minimal paperwork.
- Financing from $2,000 to $250,000 available.
- Accepts borrowers with a minimum FICO score of at least 660 at the time of application (though the required FICO score may be higher based on your relationship with American Express, credit history, and other factors).
- Monthly repayment schedule (as opposed to daily or weekly).
- No prepayment penalties, account maintenance fees or draw fees.
Cons
- Must have online checking or PayPal account to verify cash flow.
- Complex monthly fee structure makes it difficult to compare costs to other lenders.
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Wells Fargo: Best for low interest rates
Bank business loans, like Wells Fargo’s BusinessLine® Line of Credit, typically offer the lowest interest rates and most competitive repayment terms. This bank credit line is a good option for affordable working capital for established businesses.
» MORE: Our guide to average business loan interest rates
Wells Fargo BusinessLine® Line of Credit
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Max loan amount
$150,000
Min. credit score
680
Min. interest rate
9.25%
Term length
Undisclosed
Pros
- Bank line of credit with competitive interest rates.
- Revolving credit line with no scheduled annual review.
- No collateral required; no prepayment penalties.
Cons
- Must be an established business with strong credit to qualify.
- May take longer to fund than online lenders.
- Annual fee and inactivity fees may apply.
Pros
- Bank line of credit with competitive interest rates.
- Revolving credit line with no scheduled annual review.
- No collateral required; no prepayment penalties.
Cons
- Must be an established business with strong credit to qualify.
- May take longer to fund than online lenders.
- Annual fee and inactivity fees may apply.
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Fundbox: Best for fast funding
Fundbox offers a simple application and a streamlined underwriting process. The lender can give you a decision within minutes and provide funding in as fast as 24 hours.
» MORE: Compare the best fast business loans May fund quickly
Fundbox - Line of credit
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Max loan amount
$250,000
Min. credit score
600
Min. interest rate
36%
Term length
3 to 6 months
Pros
- Financing available within one business day after approval.
- Simple application with minimal documentation required.
- Low minimum credit score, time in business and annual revenue requirements.
- No prepayment penalties, account maintenance fees or inactivity fees.
Cons
- Rates are high compared with traditional banks.
- Weekly repayments required over a short term (maximum of 24 weeks).
Pros
- Financing available within one business day after approval.
- Simple application with minimal documentation required.
- Low minimum credit score, time in business and annual revenue requirements.
- No prepayment penalties, account maintenance fees or inactivity fees.
Cons
- Rates are high compared with traditional banks.
- Weekly repayments required over a short term (maximum of 24 weeks).
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Accion: Best for women- and minority-owned businesses
Accion is a nonprofit lender that focuses on women and minority business owners, as well as low-to-moderate income entrepreneurs. In addition to business loans, Accion provides educational resources, business coaching and support networks in English and Spanish.
» MORE: NerdWallet’s guide to nonprofit and microlenders
Accion Opportunity Fund Small Business Working Capital Loan
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Max loan amount
$250,000
Min. credit score
600
Min. interest rate
8.49%
Term length
12 months to 5 years
Pros
- Loan amounts from $5,000 to $250,000.
- Customized loan terms.
- No prepayment penalty.
Cons
- Slower processing speed compared with online lenders.
- Charges an origination fee.
- Not available in all U.S. states.
Pros
- Loan amounts from $5,000 to $250,000.
- Customized loan terms.
- No prepayment penalty.
Cons
- Slower processing speed compared with online lenders.
- Charges an origination fee.
- Not available in all U.S. states.
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National Funding: Best for equipment purchases
National Funding can help you purchase new or used equipment and machinery for your business. Since the equipment itself serves as collateral, these equipment loans can be easier to qualify for than other types of small business loans.
» MORE: Best options for equipment financing
National Funding - Equipment financing
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Max loan amount
$150,000
Min. credit score
600
Term length
24 months to 5 years
Pros
- Funding in as little as 24 hours.
- Prepayment discounts available.
- Offers loans to startups and borrowers with bad credit.
- No collateral or down payment required.
Cons
- Charges a factor rate that makes it more difficult to compare costs with other lenders.
- Requires higher annual revenue than other online lenders.
- Misleading website marketing: National Funding offers only short-term loans and equipment financing/leasing.
- Charges an origination fee.
Pros
- Funding in as little as 24 hours.
- Prepayment discounts available.
- Offers loans to startups and borrowers with bad credit.
- No collateral or down payment required.
Cons
- Charges a factor rate that makes it more difficult to compare costs with other lenders.
- Requires higher annual revenue than other online lenders.
- Misleading website marketing: National Funding offers only short-term loans and equipment financing/leasing.
- Charges an origination fee.
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AltLINE: Best for financing unpaid invoices
Invoice factoring from AltLINE allows business-to-business companies to access capital that’s tied up in unpaid invoices. This type of fast funding can be useful for managing cash flow issues or paying short-term expenses.
» MORE: Compare the best invoice factoring companies
AltLINE - Invoice factoring
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Max loan amount
$5,000,000
Min. credit score
300
Term length
1 to 3 months
Pros
- Capital available within 24 to 48 hours.
- No collateral required.
- Manages payment collection from your customers.
- Accepts startups and businesses with bad credit.
Cons
- Fees can become expensive the longer it takes your customers to pay.
- Difficult to compare factoring costs to other types of business loans.
- Charges an origination fee.
Pros
- Capital available within 24 to 48 hours.
- No collateral required.
- Manages payment collection from your customers.
- Accepts startups and businesses with bad credit.
Cons
- Fees can become expensive the longer it takes your customers to pay.
- Difficult to compare factoring costs to other types of business loans.
- Charges an origination fee.
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Table of contents
What is a small business loan?
Business loans can be used to cover startup costs, purchase inventory or equipment, manage cash flow and expand your operations, among other uses. You can get a small-business loan from traditional banks, online lenders and community lending institutions.
The best business loan for you depends on why you need funding, how fast you need capital and your business’s qualifications.
» MORE: Learn more business loan basics
Types of small business loans
Small business loan options can include SBA loans, term loans, business lines of credit and equipment financing.
| Loan type | Details | Credit score minimum | Funding speed |
|---|---|---|---|
| SBA loans | SBA loans are partially guaranteed by the U.S. Small Business Administration, and issued by participating lenders, such as banks and credit unions. SBA loans offer low interest rates and long repayment terms. | 650. | 14 to 90 days. |
| Business term loans | A business term loan is a lump sum of capital that’s repaid over a specific period of time, with interest. Short-term loans’ repayment periods range from three to 24 months, while repayment for long-term loans can extend up to 10 years (or longer). | 570. | Same day to 30 days. |
| Business lines of credit | A business line of credit provides access to flexible cash. Similar to a credit card, lenders give you access to a specific amount of credit (say, $100,000), but you don’t make payments or get charged interest until you tap into the funds. | 600. | Same day to 30 days. |
| Equipment financing | Equipment financing is a form of asset-based financing where the equipment itself serves as collateral for the loan. You can get an equipment loan equal to up to 100% of the value of the equipment you’re looking to purchase — depending on the lender and your business’s qualifications — which you then pay back over time, with interest. | 550. | Same day to 30 days. |
| Microloans | Microloans are small-dollar loans that typically offer up to $50,000 in business funding. These loans are designed for traditionally underserved entrepreneurs, such as startup founders, people with limited credit histories, minority groups and those located in low-income communities. | No specific minimum. | Seven to 30 days. |
| Commercial real estate loans | Commercial real estate loans are for the purchase or renovation of commercial properties, such as offices, storefronts or residential buildings. These loans typically function like traditional term loans that you repay over a set period of time, with interest. Commercial real estate loans are self-collateralizing — the property that you’re purchasing or renovating serves as collateral on the loan. | 660. | Two to 30 days. |
Business loan requirements
Lenders have different underwriting guidelines, but consider similar factors
What to decide before applying for a business loan
Figure out what loan option is right for your needs. If you want to finance a large purchase or business expansion, for example, you might consider a traditional term loan, whereas if you need funds for day-to-day expenses, you might prefer a business line of credit.
Estimate what payments you can afford. Look carefully at your business’s financials — especially cash flow — and evaluate how much you can afford to apply toward loan repayments each month. Your total income should be at least 1.25 times your total expenses, including your new repayment amount.
Compare small-business lenders. The best loan for your small business is typically the one that offers you the best terms. But other factors, like funding speed or customer service, may matter to your business and different financing sources may be better in certain instances than others.
How to compare small business loans
When choosing the best business loan for your needs, you’ll want to consider factors such as:
- Interest rates. Determine whether a lender offers fixed or variable rates. Banks tend to offer more competitive rates compared with online lenders. If a lender charges interest as a factor rate or weekly fee, calculating it into an annual percentage rate can help you better understand the total cost of the loan.
- Additional fees. Make sure you understand any additional fees (such as origination fees, closing costs or prepayment penalties) a lender charges and ask questions if the fees are unclear.
- Term length. Longer term lengths may mean smaller payments, whereas a shorter term could mean that you pay less in interest.
- Repayment schedule. Small business loans may have daily, weekly or monthly repayments. Consider your budget and cash flow to determine the type of repayment you can afford.
- Funding speed. If you need a business loan quickly, you may be able to get it from an online lender in just a few days. Although traditional lenders may take anywhere from days to weeks to provide funding, you’ll likely get a lower interest rate with these options.
Getting a business bank loan
Banks typically offer the most competitive interest rates and repayment terms on business loans. Currently, the average interest rates on business bank loans range from 6.54% to 11.7%
To qualify for a bank loan, you’ll need to meet strict eligibility criteria. You’ll likely need multiple years in business, good credit and strong revenue. You may also need to provide collateral.
Some banks, however, especially local or community institutions, may be more flexible with their requirements if you have an existing relationship. You might start your loan search with the bank that administers your business checking account or one that has issued you other financial services in the past.
Smaller banks also tend to have higher approval rates compared to big banks — as well as greater overall borrower satisfaction — according to the Federal Reserve’s 2025 Small Business Credit Survey
Business loan application checklist
The documentation that you need to provide for your loan application can vary from lender to lender. Banks and SBA lenders often require more paperwork compared to online lenders. In any case, you may need to submit:
Information about your business (e.g. name, address,
Personal and business bank statements.
Personal and business income tax returns.
Business financial documents, such as profit and loss statements, balance sheets and cash flow statements.
A photo of your driver’s license (or other official identification).
Business licenses.
Legal business formation document (e.g. articles of incorporation, articles of organization).
Description of collateral.
Existing
Legal contracts and agreements.
As you complete your application, double check all requirements and ensure everything is accurate. Providing incorrect or outdated information can slow down the underwriting process. It may be helpful, therefore, to have a business advisor or mentor review your application before submitting.
Additional business funding options
If you don’t think you can qualify for a traditional loan — or simply want to explore all of your options — you might consider one of these products to finance your business.
Small-business grants
Business credit cards
A business credit card
Invoice factoring
Merchant cash advances
With a merchant cash advance
Personal loans
A personal loan for business
Bootstrapping
Frequently asked questions about small business loans
How do small business loans work?
What credit score is needed for a small business loan?
How much income do you need to get a business loan?
Can I get a business loan for my startup?
Can I get a small business loan with bad credit?
Am I personally liable for a small business loan?
What can I do if my business loan application is denied?
Annual percentage rates (APRs), loan term and monthly payments are estimated based on analysis of information provided by lenders and publicly available information. All loan information is presented without warranty, and the estimated APR and other terms are not binding in any way. Lenders provide loans with a range of APRs depending on borrowers' credit and other factors. Keep in mind that only borrowers with excellent credit will qualify for the lowest rate available. Your actual APR will depend on factors like credit score, requested loan amount, loan term and credit history. All loans are subject to credit review and approval.
🏦 Curious about SBA loans? Here’s an overview of how SBA loans work, the types of SBA loans that are available, what each loan type can be used for and how to get SBA financing for your small business.
Last updated on May 22, 2025
How Fundera by NerdWallet works
Getting a business loan can be challenging, and several factors —
cost, speed, repayment schedule — can play a role in deciding which
product is right for you. Let us help you through the process.
Get started
Fill out one simple application
Answer a 3-minute questionnaire about your business to get personalized lending options. It’s free and won’t impact your credit score.
See your business loan options
Compare interest rates and repayment terms to choose the best product for your needs.
Get your loan
If the lender approves you, you’ll sign closing documents in order to receive funds. Some lenders can approve and fund loans within one business day.
Methodology
NerdWallet’s review process evaluates and rates small business loan products from traditional banks and online lenders. We collect over 30 data points on each lender using company websites and public documents. We may also go through a lender’s initial application flow and reach out to company representatives. NerdWallet writers and editors conduct a full fact check and update annually, but also make updates throughout the year as necessary.
Our star ratings award points to lenders that offer small business friendly features, including:
- Transparency of rates and terms.
- Flexible payment options.
- Fast funding times.
- Accessible customer service.
- Reporting of payments to business credit bureaus.
- Responsible lending practices.
We weigh these factors based on our assessment of which are the most important to small-business owners and how meaningfully they impact borrowers’ experiences.
NerdWallet does not receive compensation for our star ratings. Read more about our ratings methodology for small business loans editorial guidelines
