BEST OF

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.

NerdWalletJanuary 1, 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.

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.

Easily get real, personalized small business loan rates to compare — not just ranges or estimates.

It’s free and won’t affect your credit.

Get Started

on Fundera's website

Our picks for

Term loans

If you’re looking for a lump sum of cash to repay over a fixed period of time, term loans are right for you. Because you can pay them off over a longer period, term loans are usually the better choice for larger investments and long-term growth. Generally, term loans have lower rates than lines of credit, but some may require collateral.

BlueVine - Term loan

Est. APR

18.00 - 78.00%

Min. Credit Score

600

BlueVine's term loan works best for newer businesses that need short-term funding.

Pros

Available for businesses less than a year old.
Cash can be available within the same day.

Cons

Short repayment term results in higher payment amounts.
Requires business lien and personal guarantee.
Not available in North Dakota, South Dakota or Vermont.

Read full review

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

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

Short repayment term results in higher payment amounts.
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: 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

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.

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: 3 years.
Minimum annual revenue: $250,000.
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

650

BlueVine has temporarily paused applications for this product to prioritize PPP funding.

Pros

Cash can be available within 12 to 24 hours.
Multiple products 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: 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

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: 550.
Minimum time in business: 2 months.
Minimum annual revenue: $50,000.

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: 3 years.
Minimum annual revenue: $250,000.
No bankruptcies in the past 2 years.

Our picks 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 has temporarily paused applications for this product to prioritize PPP funding.

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: $100,000.

Fundbox - Invoice financing

Est. APR

10.10 - 78.60%

Min. Credit Score

550

Fundbox offers invoice financing for businesses with unpaid customer invoices.

Pros

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

Cons

Rates are high compared to other online lenders.

Read full review

Qualifications

Minimum credit score: 550.
Minimum annual revenue: $50,000.
Must use online accounting software that can link to Fundbox, such as QuickBooks, FreshBooks, Harvest, Clio, InvoiceASAP, Sage One, Kashoo or Jobber.

Easily get real, personalized small business loan rates to compare — not just ranges or estimates.

It’s free and won’t affect your credit.

Get Started

on Fundera's website

Summary of Compare Small-Business Lenders 2021

Lender	Best For	Est. APR	Min. Credit Score
BlueVine - Term loan	Best for Term loans	18.00 - 78.00%	600
Credibility Capital - Online term loan	Best for Term loans	19.99 - 24.99%	680
Funding Circle - Online term loan	Best for Term loans	12.18 - 36.00%	660
OnDeck - Online term loan	Best for 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
Fundbox - Invoice financing	Best for Invoice factoring	10.10 - 78.60%	550

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.

Currency Capital: Faster way of applying for an equipment loan. Competitive rates for equipment financing of up to $2 million.

Fundbox: Great no-credit-check option if you have unpaid customer invoices or if you 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.

Kabbage: Line of credit for urgent working capital needs. Minimal application requirements but can be pricey.

OnDeck: Quick, easy funding, but rates may be high. Good if you need money fast and your personal finances aren’t stellar.

StreetShares: Solid choice for working capital for businesses at one-year mark or more. Loan amounts are limited.

SmartBiz: Faster way of applying for an SBA loan. Least expensive online financing option. Requirements are stringent.

» MORE: If your business is less than a year old, consider these startup financing options.

Last updated on January 1, 2021

To recap our selections...

NerdWallet's Compare Small-Business Lenders 2021

BlueVine - Term loan: Best for Term loans
Credibility Capital - Online term loan: Best for Term loans
Funding Circle - Online term loan: Best for Term loans
OnDeck - Online term loan: Best for 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
Fundbox - Invoice financing: Best for Invoice factoring

Frequently asked questions

Two new laws provide coronavirus relief for small businesses, including deferment of existing SBA loans, access to loans and immediate emergency funds, and debt forgiveness.

A second round of government-backed forgivable coronavirus relief loans is expected to reopen in early January 2021 after President Trump signed a bill reauthorizing $284.5 billion for the Paycheck Protection Program (PPP).

Online lenders offer term loans up to $500,000, while loans backed by the U.S. Small Business Administration provide up to $5 million. Your borrowing limit depends mainly on the size and age of your business.

It can be hard to get a small-business loan if you have a bad personal credit score (300 to 629 FICO), low annual revenue and no business history. Build your credit scores, develop a strong business plan and secure the loan with collateral to qualify for a business loan.

Small-business loans are best used to finance business growth, whether it’s to open a new location, purchase equipment and inventory or hire additional staff. It’s generally a good idea to take out a business loan if your expected profits exceed the loan’s cost.