Business Term Loans: Compare Options and Apply for Financing

Fora Financial stands out as a fast funding option for borrowers who may fall short of qualifying for traditional bank financing. The lender can work with startups and borrowers with bad credit — as long as they have strong revenue. Fora offers large maximum loan amounts and can provide prepayment discounts for those who repay early.

• In business for at least six months.
• At least $20,000 per month in revenue.
• No open bankruptcies or dismissed bankruptcies within the past year.

OnDeck’s short-term loan is a good option for making one-time investments in your business, such as opening a new location or renovating your space. This loan offers fast funding (sometimes as quickly as the same day) for borrowers who may not qualify for more traditional financing options. OnDeck’s short-term loan can also be used to establish and build business credit — as the lender reports your payment history to the three commercial credit bureaus.

• Minimum credit score: 625.
• Minimum time in business: 12 months.
• Minimum annual revenue: $100,000.
• Must have business bank account.

SBA 7(a) loans stand out as an affordable option for businesses that can’t qualify for bank financing, but still have good credit and finances. 7(a) loans offer low interest rates, long repayment terms and large funding amounts. These loans can also be used for a variety of purposes, including working capital, business expansions or purchasing equipment and supplies.

• For-profit U.S. business.
• Unable to access credit on reasonable terms from nongovernment sources.
• Financial qualifications determined by individual lender.

SBA Express loans stand out as a faster alternative to standard SBA 7(a) loans. SBA Express lenders can process and approve applications without sending them to the SBA — thereby speeding up the funding timeline. Express loans offer low interest rates and long repayment terms, although they max out at $500,000 (compared to the 7(a)’s $5 million max). These loans are a good option for businesses that can’t get bank financing, but still have good credit and finances.

• Be a for-profit U.S. business.
• Unable to access credit on reasonable terms from nongovernment sources.
• Financial qualifications determined by individual lender.

Borrowers who can't qualify for more traditional loan options might consider National Funding for fast access to capital. National Funding has flexible qualification requirements and can fund applications in as little as 24 hours. The lender also offers prepayment discounts for those who can repay their loans early.

• Minimum credit score: 600.
• Minimum time in business: Six months.
• Minimum annual revenue: $250,000.

iBusiness Funding is a good option for qualified business owners who don’t want to wait for bank financing. The lender offers competitive interest rates and long repayment terms, but can fund much more quickly than traditional lenders. And with a large maximum funding amount, this loan can be used for a variety of long-term expansion projects, as well as refinancing existing debt.

• Minimum credit score: 660.
• Minimum time in business: 24 months.
• Minimum annual revenue: $50,000.
• No bankruptcies in the past seven years.

TAB Bank offers competitive interest rates for business owners with good credit — and can sometimes fund faster than an SBA loan. These loans have flexible repayment terms, don’t require collateral and can be used for a variety of purposes. And unlike some banks, which require you to apply over the phone or in person, TAB allows you to fill out an online prequalification form to start the process.

• Minimum credit score: 660.
• Minimum time in business: Two years.
• Minimum annual revenue: $400,000.

Bank of America’s unsecured term loan offers competitive interest rates and flexible repayment terms — with no collateral required. This loan can help established businesses with good credit expand their operations, purchase equipment or make other long-term investments. Preferred Rewards members may be able to access discounted rates.

• Minimum credit score: 700.
• Minimum time in business: 24 months.
• Minimum annual revenue: $100,000.

Accion Opportunity Fund (AOF) stands out as an affordable option for business owners who can’t qualify for traditional financing. AOF offers competitive interest rates, long repayment terms and flexible qualification requirements. Startups and borrowers with bad credit may qualify. This lender also targets its funding efforts toward minority-, women- and low-to-moderate-income entrepreneurs.

• Minimum credit score: 600.
• Minimum time in business: 12 months.
• Minimum annual revenue: $50,000.