How much do you need?
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 low-interest business loans
Lender | NerdWallet Rating▼ | Max loan amount▼ | Min. credit score▼ | Next steps |
---|---|---|---|---|
SBA 7(a) loan with Fundera by NerdWallet | Best for Government-backed financing | $5,000,000 | 650 | with Fundera by NerdWallet |
Bank of America Business Advantage Unsecured Term Loan | 4.8/5 Best for Bank term loans | Undisclosed | 700 | Read Review |
Wells Fargo Small Business Advantage® Line of Credit | 4.7/5 Best for Business lines of credit | $50,000 | 680 | Read Review |
Accion Opportunity Fund - Small Business Working Capital Loan | 4.6/5 Best for Bad credit | $250,000 | 570 | Read Review |
SBA Microloan with Fundera by NerdWallet | Best for Startups | $50,000 | 620 | with Fundera by NerdWallet |
Funding Circle - Online term loan with Fundera by NerdWallet | 4.5/5 Best for Fast funding | $500,000 | 660 | with Fundera by NerdWallet |
Triton Capital - Equipment financing with Fundera by NerdWallet | 4.1/5 Best for Equipment financing | $250,000 | 575 | with Fundera by NerdWallet |
Here are 7 of the best low-interest business loans
Best for Government-backed financing
Best for Bank term loans
Best for Business lines of credit
Best for Bad credit
Best for Startups
Best for Fast funding
Best for Equipment financing
I'M INTERESTED IN:
Our pick for
Government-backed financing
SBA 7(a) loans are available in amounts up to $5 million. These loans have long repayment terms and interest rates that range from 11.5% to 15%. You can use a 7(a) loan for working capital, equipment purchases, renovations and more.
SBA 7(a) loan
Max loan
$5,000,000
Min. Credit score
650
Apr range
11.50-15.00%
Our pick for
Bank term loans
Bank of America offers a flexible unsecured term loan that can be used for a range of purposes. Interest rates vary, but start at 8.50%. Members of Bank of America’s Preferred Rewards program may also qualify for an interest rate discount.
Bank of America Business Advantage Unsecured Term Loan
Max loan
Undisclosed
Min. Credit score
700
Our pick for
Business lines of credit
Wells Fargo’s unsecured line of credit is available in amounts up to $50,000 with a five-year revolving term. Interest rates range from 13% to 15%. Businesses with less than two years in operation may be able to qualify.
Wells Fargo Small Business Advantage® Line of Credit
Max loan
$50,000
Min. Credit score
680
Apr range
13.00-15.00%
Our pick for
Bad credit
Accion offers loans of up to $250,000 with repayment terms of five years. Interest rates range from 8.49% to 24.99%. As a nonprofit lender, Accion has more flexible qualification requirements than banks and credit unions. You may be able to qualify for a loan with a minimum credit score of 570.
Accion Opportunity Fund - Small Business Working Capital Loan
Max loan
$250,000
Min. Credit score
570
Apr range
8.49-24.99%
Our pick for
Startups
The SBA microloan program provides traditionally underserved borrowers (including startups) with affordable financing up to $50,000. Although interest rates are set by individual lenders, they typically range from 8% to 13%. Thus far in fiscal year 2024, 25% of SBA microloans have been issued to startups.
SBA Microloan
Max loan
$50,000
Min. Credit score
620
Apr range
8.00-13.00%
Our pick for
Fast funding
You can get an online term loan from Funding Circle in as little as two days. Loans are available in amounts up to $500,000 with repayment terms up to seven years. Interest rates range from 15.22% to 45%.
Funding Circle - Online term loan
Max loan
$500,000
Min. Credit score
660
Apr range
15.22-45.00%
Our pick for
Equipment financing
Triton Capital offers low-interest loans that can be used to purchase equipment and machinery for your business. Loans are available up to $250,000 and funding can be available in just a few days. Interest rates range from 5.99% to 34.99%.
Triton Capital - Equipment financing
with Fundera by NerdWallet
Max loan
$250,000
Min. Credit score
575
Apr range
5.99-34.99%
with Fundera by NerdWallet
What is a low-interest business loan?
🤓 Nerdy Tip
In addition to your credit score and business financials, other factors such as the federal funds rate, current market conditions and lender policies, can also influence the interest rate you’re offered.Types of low-interest business loans
Pros and cons of low-interest business loans
Lower interest rates mean the cost of borrowing money is smaller, so your total repayment amount and monthly payments are usually lower.
Because a low-interest loan is a cheaper form of capital, it can aid your business growth.
Can be harder to qualify for if you don’t have good credit and strong finances.
Lower rates can be riskier for lenders, so they may require higher collateral to counter the risk.
Where to get a low-interest business loan
Banks and credit unions
SBA lenders
Online lenders
Nonprofit organizations and microlenders
Alternatives to low-interest business loans
- Business grants. Small-business grants are essentially free financing, since you don’t have to repay the money you receive. Grants can be a particularly good option for businesses focused on technology, research and development, and projects in their local community. However, finding and applying for business grants is often time-consuming and competitive, so this type of financing may not be suitable for all businesses.
- Personal loans. If you have good personal credit, but you're just starting your company, you might use a personal loan for your business. Instead of relying on your time in business and revenue, personal loan providers will focus on your income and personal credit history. These loans also tend to have lower APRs than many online alternative lenders, but defaulting on them could hurt your personal credit score and put your personal assets at risk.
- Business credit cards. Business credit cards are a good option for financing recurring or everyday purchases. You can use your credit card to pay for business expenses, plus you can earn rewards — like cash back — for your spending. You’ll want to make sure that you can pay your bill every month, however. Otherwise, you’ll start accumulating interest on your balance. To qualify for a business credit card, you’ll typically need good personal credit, but you don’t need to have an established business history.
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.