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Compare Small-Business Lenders 2020

NerdWalletMay 4, 2020

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Online lenders provide term loans, lines of credit and invoice factoring. Read our lender reviews to learn more.

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. NerdWallet evaluates business lenders according to the needs and qualifications of entrepreneurs.

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

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

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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

BlueVine - Term loan

Est. APR

18.00 - 78.00%

Min. Credit Score

600

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.

Qualifications

  • Minimum credit score: 600.
  • Minimum time in business: 6 months.
  • Minimum annual revenue: $100,000.
Read full review
BlueVine's term loan works best for newer businesses that need short-term funding.
Credibility Capital - Online term loan

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.
  • Requires business lien and may require personal guarantee.
  • Not available in Nevada, North Dakota, South Dakota, or Vermont.

Qualifications

  • Minimum credit score: 680.
  • Minimum time in business: 2 years.
  • Minimum annual revenue: $250,000.
  • No bankruptcies in the past 5 years.
Read full review
Credibility Capital offers low-cost business loans that work best for small-business owners with strong credit.
Currency - Equipment financing

Currency - Equipment financing

Est. APR

6.00 - 24.00%

Min. Credit Score

585

Pros

  • Competitive rates among online lenders.

Cons

  • Prepayment penalty in some cases.
  • Requires business lien and personal guarantee.

Qualifications

  • Minimum credit score: 585.
  • Minimum time in business: 6 months.
  • Minimum annual revenue: $75,000.
  • Must have a net loss no greater than 10% over the past 12 months.
Read full review
Currency is an option for business owners looking to finance the purchase of new equipment.
OnDeck - Online term loan

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.
Read full review
OnDeck offers a fast term loan for small-business owners with less-than-stellar credit who want to expand.
SmartBiz - SBA loan

SmartBiz - SBA loan

Est. APR

6.73 - 10.29%

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.
  • Stringent rules on use of proceeds.
  • Requires business lien and personal guarantee.

Qualifications

  • Minimum credit score: 650.
  • Minimum time in business: 2 years.
  • Minimum annual revenue: $50,000.
  • No bankruptcies or foreclosures in the past 3 years.
Read full review
SmartBiz’s low-cost SBA loans work best for established businesses that want to finance an expansion or refinance debt.

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

BlueVine - Line of credit

Est. APR

15.00 - 78.00%

Min. Credit Score

600

Pros

  • Offers options 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.
  • Not available in North Dakota, South Dakota or Vermont.

Qualifications

  • 6-month line of credit
  • Minimum credit score: 600.
  • Minimum time in business: 6 months.
  • Minimum annual revenue: $100,000.
  • 12-month line of credit
  • Minimum credit score: 620.
  • Minimum time in business: 2 years.
  • Minimum annual revenue: $450,000.
Read full review
BlueVine's line of credit provides fast working capital for short-term borrowing needs.
Fundbox - Line of credit

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.
Read full review
Fundbox offers a business line of credit to fill a cash-flow gap, and qualifying is easier than with other lenders.
Kabbage - Line of credit

Kabbage - Line of credit

Est. APR

24.00 - 99.00%

Min. Credit Score

560

Pros

  • Financing up to $250,000 available within a few days.
  • Accepts low credit scores.

Cons

  • Rates are high compared to other online lenders.
  • Must have online checking or PayPal account to verify cash flow.
  • Fixed-fee structure means early repayment does not save interest.

Qualifications

  • Minimum credit score: 560.
  • Minimum time in business: 1 year.
  • Minimum annual revenue: $50,000.
Read full review
Kabbage provides fast loans for business owners with bad personal credit, but rates can be high.
OnDeck - Line of credit

OnDeck - Line of credit

Est. APR

13.99 - 63.00%

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 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.
Read full review
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.

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

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.
Read full review
BlueVine’s invoice factoring works best for financing larger invoices, but only if your customers reliably pay on time.
Fundbox - Invoice financing

Fundbox - Invoice financing

Est. APR

10.10 - 78.60%

Min. Credit Score

550

Pros

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

Cons

  • Rates are high compared to other online lenders.

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.
Read full review
Fundbox offers invoice financing for businesses with unpaid customer invoices.

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 Lendio's website

Summary of Compare Small-Business Lenders 2020

LenderBest ForEst. APRMin. Credit Score
BlueVine - Term loan

BlueVine - Term loan

Best for Term loans

18.00 - 78.00%

600

Credibility Capital - Online term loan

Credibility Capital - Online term loan

Best for Term loans

19.99 - 24.99%

680

Currency - Equipment financing

Currency - Equipment financing

Best for Term loans

6.00 - 24.00%

585

OnDeck - Online term loan

OnDeck - Online term loan

Best for Term loans

9.00 - 99.00%

600

SmartBiz - SBA loan

SmartBiz - SBA loan

Best for Term loans

6.73 - 10.29%

650

BlueVine - Line of credit

BlueVine - Line of credit

Best for Lines of credit

15.00 - 78.00%

600

Fundbox - Line of credit

Fundbox - Line of credit

Best for Lines of credit

10.10 - 79.80%

550

Kabbage - Line of credit

Kabbage - Line of credit

Best for Lines of credit

24.00 - 99.00%

560

OnDeck - Line of credit

OnDeck - Line of credit

Best for Lines of credit

13.99 - 63.00%

600

BlueVine - Invoice factoring

BlueVine - Invoice factoring

Best for Invoice factoring

15.00 - 68.00%

530

Fundbox - Invoice financing

Fundbox - Invoice financing

Best for Invoice factoring

10.10 - 78.60%

550

Small-business lender reviews

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.

Compare small-business loans

If you’d like to compare all of your loan options, NerdWallet has a list of small-business loans that are best for business owners. All of our recommendations are based on the lender’s market scope and track record and on the needs of business owners, as well as rates and other factors, so you can make the right financing decision.

Last updated on May 4, 2020

To recap our selections...

NerdWallet's Compare Small-Business Lenders 2020

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