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 8 online business loans
Lender | Best for | Max loan amount | Min. credit score | Next steps |
---|---|---|---|---|
Kabbage - Line of credit on Kabbage's website | Best for Online business lines of credit | $250,000 | 640 | on Kabbage's website |
OnDeck - Line of credit with Fundera by NerdWallet | Best for Online business lines of credit | $100,000 | 600 | with Fundera by NerdWallet |
OnDeck - Online term loan with Fundera by NerdWallet | Best for Short-term online business loans | $250,000 | 600 | with Fundera by NerdWallet |
Credibility Capital - Online term loan with Fundera by NerdWallet | Best for Online business loans for established companies | $500,000 | 650 | with Fundera by NerdWallet |
Funding Circle - Online term loan with Fundera by NerdWallet | Best for Online business loans for established companies | $500,000 | 660 | with Fundera by NerdWallet |
Bluevine - Line of credit with Fundera by NerdWallet | Best for Online business loans for startups | $250,000 | 625 | with Fundera by NerdWallet |
Fundbox - Line of credit with Fundera by NerdWallet | Best for Online business loans for bad credit | $150,000 | 600 | with Fundera by NerdWallet |
Triton Capital - Equipment financing with Fundera by NerdWallet | Best for Online equipment loans | $250,000 | 600 | with Fundera by NerdWallet |
Our picks for
Online business lines of credit
Kabbage - Line of credit
OnDeck - Line of credit
Our pick for
Short-term online business loans
OnDeck - Online term loan
Our picks for
Online business loans for established companies
Credibility Capital - Online term loan
Funding Circle - Online term loan
Our pick for
Online business loans for startups
Bluevine - Line of credit
Our pick for
Online business loans for bad credit
Fundbox - Line of credit
Our pick for
Online equipment loans
with Fundera by NerdWallet
Triton Capital - Equipment financing
with Fundera by NerdWallet
How Much Do You Need?
Business term loans
Business lines of credit
Equipment financing
Invoice financing and invoice factoring
Merchant cash advances
Pros
- Fast to fund. While bank and SBA loans can take weeks to fund, some online business loans can provide capital in as little as 24 hours. And even if you don’t receive a loan that quickly, many online lenders offer funding within days.
- Streamlined applications. Online business loans often offer streamlined application processes with minimal documentation. While traditional lenders tend to rely on a manual review system to evaluate loan applications, many online lenders leverage technology so that they can underwrite your business more quickly and provide a faster application decision.
- Variety of loan options. There are many different types of online business loans available — depending on your business size, funding needs, qualifications and more. Among these choices, small-business lenders offer a range of interest rates, repayment terms and loan amounts, so you can compare your options to find the right loan for your business.
- Flexible qualification requirements. To qualify for a business bank loan, you’ll generally need strong credit and several years in business. With online business loans, on the other hand, qualification requirements are typically more flexible. Lenders may consider factors other than your personal credit score, time in business and annual revenue when evaluating your application. Some lenders will also work with new businesses or those with bad credit.
Cons
- Can be expensive. Because online business loans are faster to fund and easier to qualify for — and therefore pose greater risk for lenders — they will generally be more expensive than bank and SBA loans. While the average annual percentage rate for bank loans ranges from 3% to 7%, APRs for online loans can vary anywhere from 7% to 97%. And APRs for merchant cash advances can reach even higher — up to 350%.
- Limited person-to-person interaction. Although some online lenders offer phone-based customer support, you’ll typically complete the entire loan process online — meaning you may not interact with anyone from the lending company. If you’re looking to build a relationship with a lender or have someone address your questions one-on-one, an online business loan might not be the best option for you.
- Security risks. There are a multitude of reliable online lenders on the market, but there are also bad actors that are looking to take advantage of small-business owners. These predatory lenders are often trying to trap businesses with offers that seem too good to be true, especially if those businesses are having trouble finding financing elsewhere. You can avoid these business loan scams by thoroughly researching and vetting an online lender to make sure they are reliable and trustworthy.
1. Understand your financing needs
2. Evaluate your qualifications
3. Compare lenders
4. Submit your application
- Business and personal tax returns.
- Business and personal bank statements.
- Business financial statements (e.g., profit and loss statement, balance sheet).
5. Receive your funds
To recap our selections...
Online Business Loans: Compare Your Best Options
- Kabbage - Line of credit: Best for Online business lines of credit
- OnDeck - Line of credit: Best for Online business lines of credit
- OnDeck - Online term loan: Best for Short-term online business loans
- Credibility Capital - Online term loan: Best for Online business loans for established companies
- Funding Circle - Online term loan: Best for Online business loans for established companies
- Bluevine - Line of credit: Best for Online business loans for startups
- Fundbox - Line of credit: Best for Online business loans for bad credit
- Triton Capital - Equipment financing: Best for Online equipment loans