BEST OF

7 Best Easy Business Loans for 2022

Easy business loans are fast to fund, with flexible requirements to qualify. Interest rates are higher than bank or SBA loans, however.

Jul 28, 2022

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Some business loans are easier to qualify for than others. And although the term “easy business loan" has no standard definition, these small-business loans typically offer flexible qualification requirements, streamlined applications and fast funding times.

Easy business loans are usually issued by online lenders and can be a good option for small businesses that can’t qualify for bank or SBA financing.

Below, compare some of the best easy business loans and learn how to choose the right funding for your needs.

Easily get real, personalized small-business loan rates to compare — not just ranges or estimates.

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Best Easy Business Loans

Our pick for

Business lines of credit

These business lines of credit offer financing faster than traditional bank loans. And, you can use your credit line for a wide variety of purposes.

Kabbage - Line of credit

Kabbage - Line of credit

Min. credit score

640

Kabbage loans are a good option for business owners with fair credit who want quick access to working capital.

Pros

  • Simple application process with minimal documentation required.

  • Financing up to $250,000 available within a few days.

  • Accepts borrowers with a minimum credit score of 640.

  • 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.

  • Personal guarantee required.

  • Complex monthly fee structure.

  • Can’t be used to build business credit.

Read full review

Qualifications

  • Minimum credit score: 640.

  • Minimum time in business: 1 year.

  • Minimum monthly revenue: $3,000.

OnDeck - Line of credit

OnDeck - Line of credit

Est. APR

29.90-65.90%

Min. credit score

600

OnDeck offers a fast line of credit for small-business owners with less-than-stellar credit who need to manage cash flow or buy inventory.

Pros

  • Cash can be available within the same business day.

  • Accepts borrowers with a minimum credit score of 600.

  • Streamlined application process with minimal documentation required.

  • Can be used to build business credit.

Cons

  • Not available in Nevada, North Dakota or South Dakota.

  • Requires frequent (daily or weekly) repayments.

  • Interest rates can be high compared to traditional lenders.

  • Requires business lien and personal guarantee.

Read full review

Qualifications

  • Minimum credit score: 600.

  • Minimum time in business: 1 year.

  • Minimum annual revenue: $100,000.

  • No bankruptcies in the past 2 years.

Our pick for

Quick easy business loans

OnDeck can provide funding as fast as the same day your loan is finalized. You may be able to qualify with at least 12 months in business and a credit score of 600 or higher.

OnDeck - Online term loan

OnDeck - Online term loan

Est. APR

29.90-97.30%

Min. credit score

600

OnDeck offers a fast term loan for small-business owners with less-than-stellar credit who want to expand.

Pros

  • Cash can be available within the same business day.

  • Accepts borrowers with a minimum credit score of 600.

  • Streamlined application process with minimal documentation required.

  • Can be used to build business credit.

Cons

  • Not available in Nevada, North Dakota or South Dakota.

  • Requires frequent (daily or weekly) repayments.

  • Interest rates can be high compared to traditional lenders.

  • Requires business lien and personal guarantee.

Read full review

Qualifications

  • Minimum credit score: 600.

  • Minimum time in business: 1 year.

  • Minimum annual revenue: $100,000.

  • No bankruptcies in the past 2 years.

Our pick for

Easy business loans for startups

You may be able to qualify for one of these easy business loans if your startup has at least six months in business.

Fundbox - Line of credit

Fundbox - Line of credit

Est. APR

10.10-79.80%

Min. credit score

600

Fundbox offers a business line of credit to fill a cash-flow gap, and qualifying is easier than with other lenders.

Pros

  • Financing available within one business day after approval.

  • Simple application with minimal documentation required.

  • Startup-friendly—accepts borrowers with a minimum of six months in business.

  • Low minimum credit score requirement.

  • No prepayment penalties, account maintenance fees or inactivity fees.

Cons

  • Rates are high compared to traditional banks.

  • May require personal guarantee.

  • Can’t be used to build business credit.

  • Weekly repayments required over a short term (maximum of 24 weeks).

Read full review

Qualifications

  • Minimum credit score: 600.

  • Minimum time in business: 6 months.

  • Minimum annual revenue: $100,000.

Bluevine - Line of credit

Bluevine - Line of credit

Est. APR

15.00-78.00%

Min. credit score

625

Bluevine's line of credit provides fast working capital for short-term borrowing needs.

Pros

  • Cash can be available within 12 to 24 hours.

  • Multiple term lengths for different financing needs.

  • Low minimum credit score requirement.

  • Startup-friendly; accepts borrowers with a minimum of six months in business.

Cons

  • May require weekly repayments.

  • Requires personal guarantee.

  • Not available in North Dakota, South Dakota or Vermont.

  • Rates can be high compared to traditional lenders.

Read full review

Qualifications

  • Minimum credit score: 625.

  • Minimum time in business: 6 months.

  • Minimum annual revenue: $120,000.

Our pick for

Easy equipment loans

Triton Capital can finance equipment loans in one to two business days. Businesses with bad credit (FICO score below 630) and startups may be able to qualify.

Triton Capital - Equipment financing

Triton Capital - Equipment financing

Est. APR

4.99-25.00%

Min. credit score

600

Triton Capital offers fast equipment loans up to $250,000 for businesses in a range of industries.

Pros

  • Can fund within one to two business days.

  • No prepayment penalty.

  • Flexible repayment options: monthly, quarterly, annually or semi-annually.

Cons

  • Typically requires a personal guarantee and UCC lien.

  • Requires high minimum annual revenue.

Qualifications

  • Minimum credit score: 600.

  • Minimum time in business: Two years, but startups may be eligible (with higher costs).

  • Minimum annual revenue: $250,000.

Our pick for

Easy business loans for bad credit

You may be able to qualify for a short-term business loan from Fora Financial with a credit score of 550 or higher and at least six months in business. After your application is approved, you can receive financing in as little as 72 hours.

Fora Financial - Online term loan

Fora Financial - Online term loan

Min. credit score

550

Fora Financial can be a good fit for borrowers who may fall short of qualifying for traditional bank financing, or young but established small businesses looking for speedy financing.

Pros

  • Cash can be available quickly.

  • Get a discount for prepaying.

  • No collateral required.

Cons

  • Charges a factor rate which makes it more difficult to compare costs to other lenders.

  • Minimum business age and revenue requirements apply.

  • Longest loan term is 15 months.

Read full review

Qualifications

  • In business for at least six months

  • At least $12,000 in gross sales per month

  • No open bankruptcies or dismissed bankruptcies within the past year

Easily get real, personalized small-business loan rates to compare — not just ranges or estimates.

It’s free and won’t affect your credit.

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What qualifies as an easy business loan?

Business loans issued by traditional lenders, like banks and credit unions, are typically considered the most difficult to obtain. To get bank funding, you’ll need strong credit, several years in business and excellent finances. These loans are also notoriously slow to fund and often require detailed, document-heavy applications.

So, although there is no definitive standard of what qualifies as an easy business loan, these funding options generally offer the speed and accessibility that more traditional financing lacks.

Here are the characteristics you can expect to see from easy business loans.

Flexible qualifications

Easy business loans typically have more lenient qualification requirements when it comes to standard underwriting guidelines, such as personal credit score, annual revenue and time in business. Lenders that offer these loans may also consider additional criteria when evaluating applications, including business financial accounts, bank statements and customer invoices.

Unlike more traditional types of financing, you may not have to provide physical collateral to secure one of these business loans — and startups and businesses with bad credit are more likely to qualify.

Quick to fund

Easy business loans are a good option if you need access to capital fast, as many lenders can approve and fund applications within a few days. Some lenders even leverage technology to underwrite your application in minutes, so that you can receive a same-day decision.

If you’re approved, some of the fastest lenders can provide funding within 24 hours.

Simple applications

While bank and SBA loans are known for their long and tedious applications, easy business lenders tend to streamline the loan application process. You can apply for many easy business loans online in just minutes, with minimal paperwork.

To apply for one of these loans, you typically complete a simple form and upload a few financial documents. You may be asked to provide:

  • Business financial statements, such as a profit and loss statement.

  • Business and personal tax returns.

  • Business and personal bank statements.

In lieu of (or in addition to) this documentation, some lenders will have you connect your bank or other financial accounts directly to their system so that they can evaluate your business more quickly.

Issued by online lenders

Most easy business loans are issued by online, or alternative lenders. Although some lenders may have specific types of loans that are easier to get than others (SBA microloans are usually easier to qualify for than SBA 7(a) loans, for example), online lenders generally offer the greatest flexibility.

Higher interest rates

Because easy business loans have flexible qualifications and fast funding times, they’re a greater risk to the lenders issuing the financing. As a result, these lenders will typically charge higher interest rates.

While bank loans have average business loan interest rates ranging from 3% to 7%, easy business loan rates can vary anywhere from 5% to 97%. And although the rates you receive will depend on a variety of factors, in general, the easier it is to get a business loan, the higher the cost of capital will be.

When to get an easy business loan

  • 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.

When to consider alternatives

  • 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.

How to choose the right easy business loan

The best loan for your business will ultimately depend on your individual financing needs and how well you meet lenders’ eligibility requirements.

However, if you think an easy business loan might be a good option, here are some tips to help you choose the right one.

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.

Compare more small-business loan options

The best business loan is generally the one with the lowest rates and most ideal terms. But other factors — like time to fund and your business’s qualifications — can help determine which option you should choose. NerdWallet recommends comparing small-business loans to find the right fit for your business.

Last updated on July 28, 2022

To recap our selections...

NerdWallet's Best Easy Business Loans for 2022

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