How much do you need?
We’ll start with a brief questionnaire to better understand the unique needs of your business.
Once we uncover your personalized matches, our team will consult you on the process moving forward.
Here are 7 business term loans
Lender | NerdWallet Rating | Max loan amount | Min. credit score | Next steps |
|---|---|---|---|---|
TAB Bank - Term loan with Fundera by NerdWallet | Best for Low-interest business term loans | $200,000 | 650 | with Fundera by NerdWallet |
SBA 7(a) loan with Fundera by NerdWallet | Best for Government-guaranteed term loans | $5,000,000 | 650 | with Fundera by NerdWallet |
SBA Express loan with Fundera by NerdWallet | Best for Government-guaranteed term loans | $500,000 | 650 | with Fundera by NerdWallet |
Credibility Capital - Online term loan with Fundera by NerdWallet | 4.5/5 Best for Business term loans for established companies | $500,000 | 650 | with Fundera by NerdWallet |
Funding Circle - Online term loan with Fundera by NerdWallet | 5.0/5 Best for Business term loans for established companies | $500,000 | 660 | with Fundera by NerdWallet |
OnDeck - Online term loan with Fundera by NerdWallet | 5.0/5 Best for Unsecured business term loans | $250,000 | 625 | with Fundera by NerdWallet |
Fora Financial - Online term loan with Fundera by NerdWallet | 4.5/5 Best for Business term loans for bad credit | $1,400,000 | 500 | with Fundera by NerdWallet |
Here are 7 business term loans
Best for Low-interest business term loans
Best for Government-guaranteed term loans
Best for Business term loans for established companies
Best for Unsecured business term loans
Best for Business term loans for bad credit
Our pick for
Low-interest business term loans
Bank loans typically offer the lowest interest rates, but you’ll need strong credit and finances to qualify.
TAB Bank - Term loan
with Fundera by NerdWallet
Max loan
$200,000
Min. Credit score
650
Apr range
8.99-35.99%
with Fundera by NerdWallet
Our picks for
Government-guaranteed term loans
SBA loans offer competitive interest rates and repayment terms. They can be difficult to qualify for, however, and are slow to fund.
SBA 7(a) loan
Max loan
$5,000,000
Min. Credit score
650
Apr range
10.25-12.75%
SBA Express loan
Max loan
$500,000
Min. Credit score
650
Apr range
12.50-12.50%
Our picks for
Business term loans for established companies
If you have at least two years in business and good credit, these online lenders may be able to offer term loans with competitive rates and terms.
Credibility Capital - Online term loan
Max loan
$500,000
Min. Credit score
650
Apr range
9.49-15.49%
Funding Circle - Online term loan
Max loan
$500,000
Min. Credit score
660
Apr range
5.99-16.49%
Our pick for
Unsecured business term loans
Many online lenders don’t require physical collateral to secure a loan. These lenders will typically require a personal guarantee and/or a Uniform Commercial Code lien, however.
OnDeck - Online term loan
Max loan
$250,000
Min. Credit score
625
Apr range
29.90-97.30%
Our pick for
Business term loans for bad credit
Business term loans for bad credit are usually issued by online lenders. These lenders have flexible credit score requirements, but will likely charge you more for financing.
Fora Financial - Online term loan
Max loan
$1,400,000
Min. Credit score
500
How Much Do You Need?
General Qualifications
This is a common profile for our borrowers but we have a wide number of options for many business owners.
550 or higher
at least $50k
6 months or more
- Purchasing equipment or inventory.
- Renovating an existing location or expanding to a new location.
- Purchasing real estate.
- Hiring new employees.
- Working capital.
- Refinancing existing debt.
Business term loan example
Short-term loans
Medium-term loans
Long-term loans
Pros
- You can borrow large amounts of money to finance expansion or growth.
- Long repayment terms can make big investments more affordable.
- Repaying term loans on time may help you build business credit.
- Loans from online lenders can be approved and funded quickly, usually within a few days to a week.
- Qualification requirements for online lenders may be looser than those for traditional banks.
Cons
- Less flexibility than business lines of credit, as payments begin immediately after funding.
- Shorter term loans may carry high costs and frequent repayments, although this depends on the lender.
- SBA loans are low cost but carry strict requirements and can take a while to fund.
- Collateral — an asset, such as equipment or real estate that the lender can sell if you can’t make payments — may be required.
- Evaluate your qualifications. Check your credit score, annual revenue and time in business. These are three of the key business loan requirements lenders will look at to determine whether you qualify for financing.
- Compare lenders. Decide which type of lender is best for your needs. Online lenders may have more flexible qualifications and faster funding times but higher interest rates. Banks, credit unions and SBA lenders can offer more affordable rates, but their products can be harder to qualify for.
- Prepare your documentation. Once you’ve decided which lender is right for you, prepare the documentation for your application. Commonly required documents include business financial statements, business and personal tax returns, business and personal bank statements, and business legal documents.
- Complete and submit the application. Follow the lender’s instructions to complete the application and provide all necessary documents. Take advantage of any assistance the lender offers to guide you through the application process.