BEST OF
Small-Business Loans 2021: Compare Financing and Apply
Compare online loan options for funding and growing your small business.
Small-business loans can be critical to your success as a business owner, whether you're stocking your shelves, buying equipment or expanding your footprint. Traditional banks are no longer the only sources of business financing. With online lending, you now have access – often quickly – to various funding options, from SBA loans and business lines of credit to term loans and invoice-based financing.
In response to the economic fallout from the coronavirus pandemic, small-business owners and self-employed workers have access to new relief loans provided under a new stimulus package. The application for Paycheck Protection Program reopened in January 2021.
Small-business loans can be critical to your success as a business owner, whether you're stocking your shelves, buying equipment or expanding your footprint. Traditional banks are no longer the only sources of business financing. With online lending, you now have access – often quickly – to various funding options, from SBA loans and business lines of credit to term loans and invoice-based financing.
In response to the economic fallout from the coronavirus pandemic, small-business owners and self-employed workers have access to new relief loans provided under a new stimulus package. The application for Paycheck Protection Program reopened in January 2021.
Easily get real, personalized small business loan rates to compare — not just ranges or estimates.
It’s free and won’t affect your credit.
on Fundera's website
Our pick for
SBA loans
A loan funded by participating lending institutions and backed by the Small Business Administration.

Live Oak Bank - SBA loan
Est. APR
5.50 - 8.25%
Min. Credit Score
650
Pros
- Competitive rates among online lenders.
- Faster than getting an SBA loan from a bank.
Cons
- Must have strong financials, supported by personal and business tax returns for the past 3 years.
- Only for specific industries.
- Stringent rules on use of proceeds.
- Requires business lien and personal guarantee.
Qualifications
- Minimum credit score: 650.
- Cash flow must be able to support the debt.
- No bankruptcies or foreclosures.
- No outstanding tax liens.
Our picks for
Online term loans
A loan repaid with interest over a set period of time.

BlueVine - Term loan
Est. APR
18.00 - 78.00%
Min. Credit Score
600
Pros
Offers option for businesses less than a year old.
Cash can be available within 12 to 24 hours.
Cons
Short repayment term results in higher payment amounts.
Requires personal guarantee.
Qualifications
- Minimum credit score: 600.
- Minimum time in business: 6 months.
- Minimum annual revenue: $100,000.

Credibility Capital - Online term loan
Est. APR
19.99 - 24.99%
Min. Credit Score
680
Pros
Competitive rates among online lenders.
No prepayment penalty.
Extra monthly payments can save interest cost.
Cons
Short repayment term results in higher payment amounts.
Requires high minimum credit score and revenue.
Qualifications
- Minimum credit score: 680.
- Minimum time in business: 2 years.
- Minimum annual revenue: $250,000.
- No bankruptcies in the past 5 years.

Funding Circle - Online term loan
Est. APR
12.18 - 36.00%
Min. Credit Score
660
Pros
Cash can be available within 3 business days.
Competitive rates among online lenders.
No minimum revenue requirement.
Cons
Requires high minimum credit score.
Requires business lien and personal guarantee.
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
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.
Qualifications
- Minimum credit score: 600.
- Minimum time in business: 3 years.
- Minimum annual revenue: $250,000.
- No bankruptcies in the past 2 years.
Our picks for
Lines of credit
Financing you can draw from up to a set limit. Pay interest only on borrowed amount.

BlueVine - Line of credit
Est. APR
15.00 - 78.00%
Min. Credit Score
650
Pros
Offers option for businesses less than a year old.
Cash can be available within 12 to 24 hours.
Cons
Short repayment term results in higher payment amounts.
Requires personal guarantee.
Qualifications
- 6-month line of credit
- Minimum credit score: 650.
- Minimum time in business: 3 years.
- Minimum annual revenue: $100,000.
- 12-month line of credit
- Minimum credit score: 650.
- Minimum time in business: 3 years.
- Minimum annual revenue: $480,000.

Fundbox - Line of credit
Est. APR
10.10 - 79.80%
Min. Credit Score
550
Pros
- Cash can be available by the next day.
- Low minimum credit score requirement.
Cons
- Rates are high compared to traditional banks.
Qualifications
- Minimum credit score: 550.
- Minimum time in business: 3 months.
- Minimum annual revenue: $50,000.

OnDeck - Line of credit
Est. APR
11.00 - 61.90%
Min. Credit Score
600
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.
Qualifications
- Minimum credit score: 600.
- Minimum time in business: 3 years.
- Minimum annual revenue: $250,000.
- No bankruptcies in the past 2 years.
Our pick for
Invoice factoring
Upfront cash at a reduced value for your unpaid invoices or receivables.

BlueVine - Invoice factoring
Est. APR
15.00 - 68.00%
Min. Credit Score
530
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.
Qualifications
- Minimum credit score: 530.
- Minimum time in business: 3 months.
- Minimum annual revenue: $100,000.
Easily get real, personalized small business loan rates to compare — not just ranges or estimates.
It’s free and won’t affect your credit.
on Fundera's website
Summary of Small-Business Loans 2021: Compare Financing and Apply
Lender | Best For | Est. APR | Min. Credit Score |
---|---|---|---|
![]() Live Oak Bank - SBA loan | Best for SBA loans | 5.50 - 8.25% | 650 |
![]() BlueVine - Term loan | Best for Online term loans | 18.00 - 78.00% | 600 |
![]() Credibility Capital - Online term loan | Best for Online term loans | 19.99 - 24.99% | 680 |
![]() Funding Circle - Online term loan | Best for Online term loans | 12.18 - 36.00% | 660 |
![]() OnDeck - Online term loan | Best for Online term loans | 9.00 - 99.00% | 600 |
![]() BlueVine - Line of credit | Best for Lines of credit | 15.00 - 78.00% | 650 |
![]() Fundbox - Line of credit | Best for Lines of credit | 10.10 - 79.80% | 550 |
![]() OnDeck - Line of credit | Best for Lines of credit | 11.00 - 61.90% | 600 |
![]() BlueVine - Invoice factoring | Best for Invoice factoring | 15.00 - 68.00% | 530 |
Annual Percentage Rates (APR), loan term and monthly payments are estimated based on analysis of information provided by lenders and publicly available information. All loan information is presented without warranty, and the estimated APR and other terms are not binding in any way. Lenders provide loans with a range of APRs depending on borrowers' credit and other factors. Keep in mind that only borrowers with excellent credit will qualify for the lowest rate available. Your actual APR will depend on factors like credit score, requested loan amount, loan term, and credit history. All loans are subject to credit review and approval.
Small-business loans
Small-business loans are typically issued only for businesses with a year or more of history and revenue. Among the financing options for entrepreneurs who qualify are U.S. Small Business Administration loans, term loans, business lines of credit and invoice factoring. Startups operating for less than a year can consider other financing options.
Types of small-business loans
Paycheck protection program loans
PPP, which was designed to keep employees on the payroll, reopened in January. Small-business owners impacted by the COVID-19 pandemic can apply for first or second PPP loans.
SBA loan
The government-guaranteed SBA loan program works with banks to offer low interest rates and long-term repayment. But the process is time-consuming, and the requirements are strict. Only those with good personal credit (690 or higher, although some SBA lenders may have lower score requirements), strong business finances and the flexibility to wait for funding should apply.
Loan amounts: $30,000 to $5 million.
Approximate APR range: 5.50% to 8%.
Good for large one-time and longer-term investments, purchasing real estate or equipment, buying existing businesses and refinancing debt.
Business term loan
Online lenders offer term loans of up to $500,000. For a short-term loan, the repayment period typically ranges from six to 12 months, while a long-term loan repayment can extend up to 10 years or longer in some cases. Business owners can also find financing that can be used for specific items, like equipment or inventory.
Loan amounts: Up to $500,000.
Approximate APR range: 9% to 99%.
Good for large one-time investments.
Business line of credit
A business line of credit provides access to flexible cash. Similar to a credit card, lenders give you access to a specific amount of credit (say, $100,000), but you don’t make payments or get charged interest until you tap into the funds.
Credit line range: $2,000 to $250,000.
APR range: 10% to 99%.
Good for managing cash flow, handling unexpected expenses and financing short-term business needs.
Invoice factoring and invoice financing
Invoice factoring turns business owners’ unpaid invoices into immediate cash. You sell the invoices to a factoring company, which is paid when it collects from your customers. If you prefer to maintain control over your invoices, invoice financing is an alternative to factoring. Time to funding can be relatively short with invoice factoring or financing.
Financing amounts: Up to $5 million.
APR range: 10% to 79%.
Good for managing cash flow, short-term financing.
Additional funding options
Business financing options other than traditional loans or lines of credit include personal loans for business or business credit cards. A personal loan for business is a good option if your business is still young and you don’t qualify for traditional financing. Personal-loan providers look at your personal credit score and income instead of your business history.
A business credit card offers revolving credit, making it a solid option for short-term expenses. It can also be easier to qualify for a business credit card than a small-business loan. While credit limits tend to be smaller than a line of credit, a business credit card may offer rewards, such as cash back or travel points.
How do I get a business loan?
Every lender has different underwriting guidelines, but they generally consider similar factors, including personal credit score, your time in business and annual revenue. Lenders also consider your cash flow and ability to repay the debt.
Banks typically require a strong personal credit score (starting in the 700s), several years in business and a solid track record of business finances such as strong cash flow. In some cases, banks will require collateral.
Depending on the lender, you’ll be asked to share financial documents like tax returns, and bank and cash-flow statements. Read more about how to get a small-business loan.
Additional steps to qualify for a small-business loan
Having strong personal credit can help you qualify for lower rates and give you more financing options. If you don’t need business financing right away, consider building your credit score.
If you don’t know your credit score or want to monitor it consistently, several personal finance websites, including NerdWallet, offer free credit score access. Track your progress and open more doors for financing your business.
Why online lenders?
Only about 1 in 5 businesses that apply for a loan from a big bank are approved. We help business owners by working with online lenders that simplify the loan application process and approve more small businesses. Many online lenders also offer competitive rates and faster funding than some banks.
How does NerdWallet make money?
We make money when you get the funding you need. Some of the loan providers on our site pay us a referral fee when customers get approved for a loan. We always try to find the best option for you, even if we don’t have a paying relationship with a lender. We also turn down offers from lenders that we feel take advantage of small-business owners. Read more about how we make money.
Last updated on January 21, 2021
To recap our selections...
NerdWallet's Small-Business Loans 2021: Compare Financing and Apply
- Live Oak Bank - SBA loan: Best for SBA loans
- BlueVine - Term loan: Best for Online term loans
- Credibility Capital - Online term loan: Best for Online term loans
- Funding Circle - Online term loan: Best for Online term loans
- OnDeck - Online term loan: Best for Online term loans
- BlueVine - Line of credit: Best for Lines of credit
- Fundbox - Line of credit: Best for Lines of credit
- OnDeck - Line of credit: Best for Lines of credit
- BlueVine - Invoice factoring: Best for Invoice factoring
Frequently asked questions
The Paycheck Protection Program is a federal loan program to help small businesses keep employees on the payroll amid the economic fallout of the coronavirus pandemic. Implemented by the U.S. Small Business Administration, PPP reopened in January 2021 under a stimulus package signed into law by President Trump at the end of last year.
Like any type of credit, qualifying for a business loans depends a lot on your personal credit score, which can signal to lenders how likely you are to repay the loan. Small-business lenders also consider factors like how old your business is and how much revenue it earns. Learn how to qualify for a small-business loan in five steps.
Startups less than a year old typically won't qualify for traditional small-business loans. Instead, consider alternative financing like business credit cards, personal loans or grants. See our list of funding options for startups.