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Compare Small-Business Lenders 2021

Online lenders provide term loans, lines of credit and invoice factoring. Compare small-business lending companies to find the best fit for your business.
NerdWalletApril 29, 2021
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If you need financing for your small business, your local bank is no longer your only option.
Online lenders offer quick access to small-business loans to address various needs, from dealing with an emergency to growing your small business. Here are nontraditional small-business lending companies you can compare based on your needs and qualifications.

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Our picks for

Term loans

Credibility Capital - Online term loan

Est. APR

6.99 - 24.99%

Min. Credit Score

650

Credibility Capital offers low-cost business loans that work best for small-business owners with strong credit.

Pros

  • Competitive rates among online lenders.
  • No prepayment penalty.
  • Extra monthly payments can save interest cost.

Cons

  • Requires high minimum credit score and revenue.
  • Requires business lien and may require personal guarantee.
  • Not available in Nevada, North Dakota, South Dakota or Vermont.
Read full review

Qualifications:

  • Minimum credit score: 650.
  • Minimum time in business: 2 years.
  • Minimum annual revenue: $200,000.
  • No bankruptcies in the past 5 years.

Funding Circle - Online term loan

Est. APR

12.18 - 36.00%

Min. Credit Score

660

Funding Circle is an option for established businesses that are financing an expansion or refinancing debt.

Pros

  • Cash can be available within 3 business days.
  • Competitive rates among online lenders.
  • No minimum revenue requirement.

Cons

  • Requires business lien and personal guarantee.
  • Not available in Nevada.
Read full review

Qualifications:

  • Minimum credit score: 660.
  • Minimum time in business: 2 years.
  • Minimum annual revenue: None.
  • No bankruptices in the past 7 years.

OnDeck - Online term loan

Est. APR

9.00 - 99.00%

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.
  • Requires low minimum credit score.
  • Less paperwork than most lenders.

Cons

  • Fixed-fee structure means early repayment will not save interest.
  • Requires frequent (daily or weekly) repayments.
  • 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 picks for

Lines of credit

If you’re looking for financing flexibility, a line of credit is a better option. You draw on the line — up to a specified amount — as needed and pay interest only on the money you borrow. Lines of credit are a better choice for short-term expenses. Although the APR may be slightly higher than for term loans, lines of credit provide the flexibility to take out money only when, and as often as, you need it.

BlueVine - Line of credit

Est. APR

15.00 - 78.00%

Min. Credit Score

600

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.

Cons

  • Short repayment term results in higher payment amounts.
  • Requires personal guarantee.
  • Not available in North Dakota, South Dakota or Vermont.
Read full review

Qualifications:

  • 6-month line of credit:
  • Minimum credit score: 600.
  • Minimum time in business: 6 months.
  • Minimum annual revenue: $120,000.
  • 12-month line of credit:
  • Minimum credit score: 600.
  • Minimum time in business: 6 months.
  • Minimum annual revenue: $120,000.

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

  • Cash can be available by the next day.
  • Low minimum credit score requirement.

Cons

  • Rates are high compared to traditional banks.
Read full review

Qualifications:

  • Minimum credit score: 600.
  • Minimum time in business: 6 months.
  • Minimum annual revenue: $100,000.

OnDeck - Line of credit

Est. APR

11.00 - 61.90%

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.
  • Requires low minimum credit score.
  • Less paperwork than most lenders.

Cons

  • Fixed-fee structure means early repayment will not save interest.
  • Requires weekly repayments.
  • Requires 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

Invoice factoring

Invoice factoring is a way to get immediate cash by borrowing against your unpaid customer invoices, which can help you fill cash-flow gaps while you wait for customers to pay. This type of financing is only for companies that sell goods and services to other businesses and, therefore, have invoices. Typically, invoice factoring costs are higher than with term loans and lines of credit.

BlueVine - Invoice factoring

Est. APR

15.00 - 68.00%

Min. Credit Score

530

BlueVine's invoice factoring can turn unpaid customer invoices into fast cash.

Pros

  • Finances larger invoices.
  • Cash can be available within the same day.
  • Accepts low minimum credit score and short time in business.

Cons

  • Not for businesses that do not invoice on net terms.
  • Loan amount is tied to the value of your invoices.
  • Dependency on customers to pay their bills on time.
Read full review

Qualifications:

  • Minimum credit score: 530.
  • Minimum time in business: 3 months.
  • Minimum annual revenue: $120,000.

How Much Do You Need?

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Summary of Compare Small-Business Lenders 2021

LenderBest ForEst. APRMin. Credit ScoreNext Steps

Credibility Capital - Online term loan

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Best for Term loans6.99 - 24.99%650
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Funding Circle - Online term loan

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Best for Term loans12.18 - 36.00%660
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OnDeck - Online term loan

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Best for Term loans9.00 - 99.00%600
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BlueVine - Line of credit

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Best for Business lines of credit up to $250,00015.00 - 78.00%600
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Fundbox - Line of credit

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Best for Business lines of credit up to $150,00010.10 - 79.80%600
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OnDeck - Line of credit

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Best for Business lines of credit up to $100,00011.00 - 61.90%600
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BlueVine - Invoice factoring

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Best for Invoice factoring15.00 - 68.00%530
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Compare small-business lending companies

When comparing and choosing a small-business lender, consider several factors, such as loan types, eligibility and costs.
BlueVine: Good for B2B businesses that deal with unpaid invoices and cash flow needs. You must have dependable customers. Also offers term loans and lines of credit.
Credibility Capital: Good short-term financing option for businesses with two years or more of history. Good credit is required.
Fundbox: Good option if you have less-than-ideal credit and need a line of credit for short-term working capital.
Funding Circle: Term loan for growth. Rates are lower compared with other online lenders. Your finances must be in good shape.
OnDeck: Quick, easy funding, but rates may be high. Good if you need money fast and your personal finances aren’t stellar.
» MORE: If your business is less than a year old, consider these startup financing options.
Last updated on April 29, 2021

To recap our selections...

Compare Small-Business Lenders 2021

Frequently Asked Questions

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