7 Best Easy Business Loans for 2023

Flexible qualifications

Quick to fund

Simple applications

• Business financial statements, such as a profit and loss statement.
• Business and personal tax returns.
• Business and personal bank statements.

Issued by online lenders

Higher interest rates

• You can’t qualify for other types of financing. If you can’t qualify for a bank or SBA loan, an easy business loan from an online lender might be a good option. Although one of these loans will typically have higher interest rates than more traditional funding options, they can provide the capital you need to cover a variety of expenses. And, taking a loan and making timely payments will likely help you qualify for more competitive types of financing in the future.
• You need cash fast. Bank and SBA loans can take several weeks to fund, sometimes longer. If you need capital fast — to cover emergency expenses or to take advantage of a new business opportunity, for example — you might be willing to pay a little more for the speed of an easy business loan.

• You can qualify for a bank or SBA loan. In general, the best loan for your business is the one with the most competitive rates and terms. If you can qualify for a bank or SBA loan, these loans will likely be the most affordable option for your business.
• You can wait for financing. Although speed seems like a benefit of easy business loans, it often corresponds with higher interest rates. If your business doesn’t need capital immediately — and you can qualify and go through a longer application process — a bank or SBA loan will usually offer lower interest rates. Or, even if you can’t qualify for one of these loans just yet, you might be able to step back and improve your credit or increase your cash flow so that you can access more competitive rates and terms when you do apply for funding.

Understand your financing needs

• Determine what type of funding is best for you. Several factors can help you decide which financing option will meet your needs. You can think about how much capital you need and how you’re going to use it. You can also consider different types of business loans — business lines of credit, term loans, invoice factoring — and which might be the right fit.
• Calculate how much debt you can afford. Easy business loans will likely have higher interest rates and fees than other types of financing. You’ll want to review your business financials to make sure you can afford any potential debt before taking it on.

Do your research

• Check your qualifications. Review common underwriting criteria — time in business, credit score, annual revenue — so you have a sense of where your business stands before applying.
• Research several lenders and their requirements. Although easy business lenders typically don’t require physical collateral, you’ll likely have to sign a personal guarantee. The lender may also take out a general lien on your business assets.
• Avoid predatory lenders. Stay away from lenders that promise guaranteed approval or business loans with no credit check. Although there are many reputable online lenders on the market, predatory lenders tend to target small businesses that are having trouble qualifying for financing. If you think a loan offer seems too good to be true, it probably is.

Review your options carefully

• Compare multiple loan offers. You’ll want to make sure that you’re getting the best deal for your business, so consider factors like interest rates, repayment terms, fees and prepayment penalties.
• Read your business loan agreement thoroughly. It’s important to ensure that you understand the rates and repayment terms. Certain online lenders quote interest rates in different ways; while some use annual percentage rates, others may use simple interest rates. The best way to understand the total cost of your loan is to calculate any interest rate into an APR. You can ask your lender for clarification if you have any questions.