Best Small-Business Lenders of December 2023

Pros

• Large borrowing maximums.
• Interest rates are capped.
• Long repayment terms available.

Cons

• Personal guarantee is required.
• Collateral is typically required.
• Longer processing times than online lenders.

Pros

• Available as a term loan or line of credit.
• Interest rates are capped.
• Faster processing time compared with other government loans.

Cons

• Personal guarantee is required.
• Lower borrowing maximum than other government loans.
• Shorter repayment term for line of credit than 7(a) loans.

Pros

• Line of credit options for seasonal, working capital, building and contracting needs.
• Large maximum borrowing amounts.
• Competitive interest rates and repayment terms.

Cons

• Typically requires good credit and multiple years in business.
• Slow to fund.
• Collateral and/or down payment may be required.

Pros

• Low down payment required.
• Repayment terms of up to 25 years.
• Competitive interest rates.

Cons

• Personal guarantee is required.
• Must meet job creation or public policy goals to qualify.
• Longer processing times than online lenders.

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.

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 credit line with competitive interest rates.
• Large maximum line limit of $500,000.
• Can apply online for up to $250,000.

Cons

• Must have a Chase Business Banking account to apply online.
• Not available in Alaska and Hawaii.
• Annual fee may apply.
• Limited information on terms and fees available online.

Pros

• Bank line of credit with competitive interest rates.
• Can fund as quickly as the same business day.
• Monthly repayments with no set term.

Cons

• Requires high minimum credit score and multiple years in business.
• Requires personal guarantee.
• Businesses in certain states and industries are ineligible.

Pros

• No prepayment penalty.
• Terms range from 36 to 60 months.
• Bank loan with online application process.

Cons

• Requires high minimum credit score.
• Origination fee and documentation fee charged on all loans.
• Requires business lien and personal guarantee.

Pros

• Cash can be available within the same business day.
• Accepts borrowers with a minimum credit score of 625.
• 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 with traditional lenders.
• Requires business lien and personal guarantee.

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 with traditional banks.
• May require personal guarantee.
• Weekly repayments required over a short term (maximum of 24 weeks).

Pros

• Cash can be available within 12 to 24 hours.
• Multiple term lengths for different financing needs.
• Low minimum credit score requirement.

Cons

• May require weekly repayments.
• Requires personal guarantee.
• Not available in North Dakota, South Dakota or Nevada.
• Rates can be high compared to traditional lenders.

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

• 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.
• 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 makes it difficult to compare costs to other lenders.

Pros

• Cash can be available within two business days.
• Competitive rates among online lenders.
• No minimum revenue requirement.
• Terms up to seven years.

Cons

• Requires business lien and personal guarantee.
• Must be in business for a minimum of two years.
• Minimum credit score is higher than some other lenders.

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 15 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.

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.

Pros

• Can fund within one to two business days.
• No prepayment penalty.
• Flexible repayment options: monthly, quarterly, annually or semiannually.

Cons

• Typically requires a personal guarantee and UCC lien.
• Requires high minimum annual revenue.