Best Small Business Loans of October 2025
We evaluated close to 90 small business loans to find the best financing options. Our top picks offer transparency, flexibility and borrower-friendly features.
best small business loans: More details
U.S. Small Business Administration: Best for businesses that can’t qualify for bank loans
SBA 7(a) loans offer favorable rates and terms. These government-guaranteed loans can be used for large and long-term funding purposes.
» MORE: NerdWallet’s guide to SBA loans Low interest rate
SBA 7(a) loan
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Max loan amount
$5,000,000
Min. credit score
650
Min. interest rate
10.25%
Term length
Up to 25 years
Pros
- Large borrowing maximums.
- Interest rates are capped.
- Long repayment terms available.
Cons
- Collateral is typically required.
- Longer processing times than online lenders.
Pros
- Large borrowing maximums.
- Interest rates are capped.
- Long repayment terms available.
Cons
- Collateral is typically required.
- Longer processing times than online lenders.
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Fora Financial: Best for bad credit business loans
It can be more difficult to get a business loan with bad credit, but Fora Financial is willing to work with borrowers who have a personal credit score of 570 or higher.
» MORE: Best bad credit business loans
Fora Financial - Online term loan
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Max loan amount
$1,500,000
Min. credit score
570
Term length
4 to 18 months
Pros
- Cash can be available quickly.
- Get a discount for prepaying.
- No collateral required.
- Low minimum credit score requirement.
Cons
- Charges a factor rate that makes it more difficult to compare costs with other lenders.
- Can’t build business credit.
- Longest loan term is 18 months.
- Charges an origination fee.
Pros
- Cash can be available quickly.
- Get a discount for prepaying.
- No collateral required.
- Low minimum credit score requirement.
Cons
- Charges a factor rate that makes it more difficult to compare costs with other lenders.
- Can’t build business credit.
- Longest loan term is 18 months.
- Charges an origination fee.
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Bluevine: Best for fast funding
Bluevine offers a simple application and a streamlined underwriting process. The lender can give you a decision within minutes and provide funding in as fast as 24 hours.
» MORE: Compare the best fast business loans May fund quickly
Bluevine - Line of credit
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Max loan amount
$250,000
Min. credit score
625
Min. interest rate
14%
Term length
Up to 6 months
Pros
- Cash can be available within 12 to 24 hours.
- Can be used to build business credit.
- Low minimum credit score requirement.
Cons
- Requires weekly payments.
- Not available in North Dakota, South Dakota or Nevada.
- Rates can be high compared with traditional lenders.
Pros
- Cash can be available within 12 to 24 hours.
- Can be used to build business credit.
- Low minimum credit score requirement.
Cons
- Requires weekly payments.
- Not available in North Dakota, South Dakota or Nevada.
- Rates can be high compared with traditional lenders.
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Headway Capital: Best for startups
Headway Capital can provide new entrepreneurs with a flexible business line of credit. You only need a minimum of six months in business to qualify.
» MORE: Compare the best startup business loans
Headway Capital - Line of credit
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Max loan amount
$100,000
Min. credit score
625
Min. interest rate
35%
Term length
12 to 24 months
Pros
- Flexible qualification requirements.
- No prepayment penalties.
- Funds available by next business day after approval.
Cons
- Most borrowers are subject to a 2% draw fee.
- Not available in all U.S. states.
Pros
- Flexible qualification requirements.
- No prepayment penalties.
- Funds available by next business day after approval.
Cons
- Most borrowers are subject to a 2% draw fee.
- Not available in all U.S. states.
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Accion: Best for women- and minority-owned businesses
Accion is a nonprofit lender that focuses on women and minority business owners, as well as low-to-moderate income entrepreneurs. In addition to business loans, Accion provides educational resources, business coaching and support networks in English and Spanish.
» MORE: NerdWallet’s guide to nonprofit and microlenders
Accion Opportunity Fund Small Business Working Capital Loan
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Max loan amount
$350,000
Min. credit score
600
Min. interest rate
8.49%
Term length
12 months to 5 years
Pros
- Loan amounts from $5,000 to $350,000.
- Customized loan terms.
- No prepayment penalty.
Cons
- Slower processing speed compared with online lenders.
- Charges an origination fee.
- Not available in all U.S. states.
Pros
- Loan amounts from $5,000 to $350,000.
- Customized loan terms.
- No prepayment penalty.
Cons
- Slower processing speed compared with online lenders.
- Charges an origination fee.
- Not available in all U.S. states.
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altbanq: Best for large financing needs
Altbanq offers term loans in amounts up to $10 million — a higher maximum than many other lenders. It can be a good option for businesses that need to finance larger purchases or projects.
» MORE: Compare the best large business loans
altbanq - Online term loan
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Max loan amount
$10,000,000
Min. credit score
650
Min. interest rate
0%
Term length
Up to 24 months
Pros
- Same-day funding available.
- Prepayment discounts available.
- Large maximum funding amounts.
- Accessible to startups.
Cons
- Higher credit score requirement than some online lenders.
- Repayment terms max out at 24 months.
- Charges an origination fee.
Pros
- Same-day funding available.
- Prepayment discounts available.
- Large maximum funding amounts.
- Accessible to startups.
Cons
- Higher credit score requirement than some online lenders.
- Repayment terms max out at 24 months.
- Charges an origination fee.
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Bank of America: Best for well-established businesses
Bank of America’s unsecured business term loan offers low interest rates and competitive repayment terms. It’s well-suited for business owners who have been in operation for a couple years and have strong personal credit.
» MORE: Best banks for small-business loans
Bank of America Business Advantage Unsecured Term Loan
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Max loan amount
Undisclosed
Min. credit score
700
Term length
12 months to 5 years
Pros
- Bank loan with competitive interest rates.
- No collateral required.
- Bank of America’s Preferred Rewards program can offer interest rate discounts and other perks.
Cons
- Can be slow to fund.
- Prepayment fees may apply to early repayments.
- Must be an existing Bank of America customer to apply online.
- Charges an origination fee.
Pros
- Bank loan with competitive interest rates.
- No collateral required.
- Bank of America’s Preferred Rewards program can offer interest rate discounts and other perks.
Cons
- Can be slow to fund.
- Prepayment fees may apply to early repayments.
- Must be an existing Bank of America customer to apply online.
- Charges an origination fee.
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Wells Fargo: Best for low interest rates
Bank business loans, like Wells Fargo’s BusinessLine® Line of Credit, typically offer the lowest interest rates and most competitive repayment terms. This bank credit line is a good option for affordable working capital for established businesses.
» MORE: Our guide to average business loan interest rates
Wells Fargo BusinessLine® Line of Credit
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Max loan amount
$150,000
Min. credit score
680
Min. interest rate
9%
Term length
Undisclosed
Pros
- Bank line of credit with competitive interest rates.
- Revolving credit line with no scheduled annual review.
- No collateral required; no prepayment penalties.
Cons
- Must be an established business with strong credit to qualify.
- May take longer to fund than online lenders.
- Annual fee and inactivity fees may apply.
Pros
- Bank line of credit with competitive interest rates.
- Revolving credit line with no scheduled annual review.
- No collateral required; no prepayment penalties.
Cons
- Must be an established business with strong credit to qualify.
- May take longer to fund than online lenders.
- Annual fee and inactivity fees may apply.
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AltLINE: Best for financing unpaid invoices
Invoice factoring from AltLINE allows business-to-business companies to access capital that’s tied up in unpaid invoices. This type of fast funding can be useful for managing cash flow issues or paying short-term expenses.
» MORE: Compare the best invoice factoring companies
AltLINE - Invoice factoring
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Max loan amount
$5,000,000
Min. credit score
300
Term length
1 to 3 months
Pros
- Capital available within 24 to 48 hours.
- No collateral required.
- Manages payment collection from your customers.
- Accepts startups and businesses with bad credit.
Cons
- Fees can become expensive the longer it takes your customers to pay.
- Difficult to compare factoring costs to other types of business loans.
- Charges an origination fee.
Pros
- Capital available within 24 to 48 hours.
- No collateral required.
- Manages payment collection from your customers.
- Accepts startups and businesses with bad credit.
Cons
- Fees can become expensive the longer it takes your customers to pay.
- Difficult to compare factoring costs to other types of business loans.
- Charges an origination fee.
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Fundbox: Best for low-revenue businesses
Fundbox can offer working capital to businesses that are still growing their revenue. You may be able to qualify with $30,000 in annual revenue.
» MORE: Compare the best business loans for companies with low revenue May fund quickly
Fundbox - Line of credit
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Max loan amount
$250,000
Min. credit score
600
Min. interest rate
36%
Term length
3 to 6 months
Pros
- Financing available within two business days after approval.
- Simple application with minimal documentation required.
- Low minimum credit score, time in business and annual revenue requirements.
- No prepayment penalties, account maintenance fees or inactivity fees.
Cons
- Rates are high compared with traditional banks.
- Weekly repayments required over a short term (maximum of 24 weeks).
Pros
- Financing available within two business days after approval.
- Simple application with minimal documentation required.
- Low minimum credit score, time in business and annual revenue requirements.
- No prepayment penalties, account maintenance fees or inactivity fees.
Cons
- Rates are high compared with traditional banks.
- Weekly repayments required over a short term (maximum of 24 weeks).
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iBusiness Funding: Best for long repayment terms
iBusiness Funding offers repayment terms up to seven years — which can give you more time to pay and lower monthly payments than shorter-term loans. This online lender can also issue funding more quickly than conventional business lenders.
» MORE: Best long-term business loans May fund quickly
iBusiness Funding - Online term loan
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Max loan amount
$500,000
Min. credit score
660
Min. interest rate
15.22%
Term length
6 months to 5 years
Pros
- Cash can be available within two business days.
- Competitive rates among online lenders.
- Terms up to five years.
- iBusiness Funding also offers SBA loans up to $5 million.
Cons
- Charges an origination fee.
- Must be in business for a minimum of 24 months.
- Minimum credit score is higher than some other lenders.
Pros
- Cash can be available within two business days.
- Competitive rates among online lenders.
- Terms up to five years.
- iBusiness Funding also offers SBA loans up to $5 million.
Cons
- Charges an origination fee.
- Must be in business for a minimum of 24 months.
- Minimum credit score is higher than some other lenders.
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National Funding: Best for equipment purchases
National Funding can help you purchase new or used equipment and machinery for your business. Since the equipment itself serves as collateral, these equipment loans can be easier to qualify for than other types of small business loans.
» MORE: Best options for equipment financing
National Funding - Equipment financing
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Max loan amount
$150,000
Min. credit score
600
Term length
24 months to 5 years
Pros
- Funding in as little as 24 hours.
- Prepayment discounts available.
- Offers loans to startups and borrowers with bad credit.
- No collateral or down payment required.
Cons
- Charges a factor rate that makes it more difficult to compare costs with other lenders.
- Requires higher annual revenue than other online lenders.
- Misleading website marketing: National Funding offers only short-term loans and equipment financing/leasing.
- Charges an origination fee.
Pros
- Funding in as little as 24 hours.
- Prepayment discounts available.
- Offers loans to startups and borrowers with bad credit.
- No collateral or down payment required.
Cons
- Charges a factor rate that makes it more difficult to compare costs with other lenders.
- Requires higher annual revenue than other online lenders.
- Misleading website marketing: National Funding offers only short-term loans and equipment financing/leasing.
- Charges an origination fee.
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OnDeck: Best for covering short-term expenses
OnDeck’s term loan is a good option for covering short-term costs, such as buying equipment or inventory, purchasing furniture and supplies and paying utilities. OnDeck also has flexible qualification requirements — making it a worthwhile choice for businesses that can’t qualify for a bank or SBA loan.
» MORE: Best short-term business loans May fund quickly
OnDeck - Online term loan
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Max loan amount
$250,000
Min. credit score
625
Min. interest rate
31.3%
Term length
18 to 24 months
Pros
- Cash can be available within the same business day (does not apply in California or Vermont).
- Accepts borrowers with a minimum credit score of 625.
- Streamlined application process with minimal documentation required.
- Can be used to build business credit.
Cons
- Cannot fund North Dakota-based businesses.
- Requires frequent (daily or weekly) repayments.
- Interest rates can be high compared with traditional lenders.
- Charges origination fee.
Pros
- Cash can be available within the same business day (does not apply in California or Vermont).
- Accepts borrowers with a minimum credit score of 625.
- Streamlined application process with minimal documentation required.
- Can be used to build business credit.
Cons
- Cannot fund North Dakota-based businesses.
- Requires frequent (daily or weekly) repayments.
- Interest rates can be high compared with traditional lenders.
- Charges origination fee.
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Table of contents
How we chose the best small business loans
NerdWallet’s editorial team evaluates small business loans based on six major categories. They include:
- Cost.
- Transparency.
- Underwriting and loan flexibility.
- Credit.
- Application experience.
- Customer service.
Small business loans need to earn at least 4 stars to make our list.
⭐ What our star ratings mean
Which small business loans we consider
NerdWallet’s editorial team has reviewed close to 90 small business loans in 2025. We focus on loans widely available to business owners. This typically means options from major banks, like Bank of America, Wells Fargo and Chase, as well as reputable online lenders, such as OnDeck, Bluevine and Fundbox.
We research local and community loan options as well. Our writers and editors may not fully evaluate these options because of their limited availability. Still, these loan options might meet your business’s needs. For instance, community lenders tend to offer startup business loans and business loans for bad credit. We include these options on relevant pages so you find the best choice possible.
≡ Full list of small business loans
How we keep our picks up to date
NerdWallet has a full-time team of small-business writers and editors. Here's how we monitor this page — and the overall business loan space:
- Review information for all loan products regularly. We do a full audit annually. We also update loan details and star ratings as soon as any changes occur.
- Survey business lenders. We ask lenders directly for information that matters to business owners, but may not be publicly available. For instance, we ask whether lenders report to the commercial credit bureaus and if they offer an online dashboard for loan management.
- Test the borrower experience. We start the loan application process online (when possible) to better understand what’s required and how long the process takes. We also call lenders directly to see what their customer service is like.
- Gather insights from experts and business owners. Our team regularly interviews experts at banks, nonprofit and community lending organizations and even the U.S. Small Business Administration. We ask them for insights into the lending industry, key trends, as well as the challenges and priorities for small-business borrowers. We also check online channels, such as Reddit, Trustpilot and the Better Business Bureau to get a sense of what people are saying about business loan products and their lending experiences.
- Monitor news and trends. We monitor news and trends using Google Alerts, outreach from public relations contacts, and AI-assisted web scraping. This helps us stay up to date on changes in loan rates, underwriting standards and financing options for small-business owners.
How to compare small business loans
When choosing the best business loan for your needs, you’ll want to consider factors such as:
📈 Interest rates
💰 Additional fees
🗓️ Term length
⏰ Repayment schedule
⌛ Funding speed
🤝 Lender reputation
Small business lending outlook 2025: Rates, credit options and market shifts
Rising tariffs disrupt small-business costs and planning
Tariff policy continues to evolve — many levies are now in effect, a handful are paused and more may be announced in the future. This economic uncertainty has created a difficult landscape for small business owners, many of whom have already felt the impact of rising costs and supply chain disruptions.
Given this uncertainty, it may be a good time to review your budget and financial strategy. It can be useful to work with a financial advisor or accountant, as these professionals can help you develop a plan tailored to your unique needs and challenges.
Another option to consider is taking out a business line of credit
Federal Reserve lowers rates for first time in 9 months
Business loan rates remain elevated compared with pandemic-era lows. In September 2025, the Federal Reserve reduced interest rates by 0.25%
With the latest cut, business loan rates, including SBA loan rates
Steps to get a business loan
Getting approved for a business loan doesn't have to be a painful process. You can increase your chances of success by understanding your business's qualifications
Frequently asked questions about small business loans
How do small business loans work?
What credit score is needed for a small business loan?
How much income do you need to get a business loan?
Can I get a business loan for my startup?
Can I get a small business loan with bad credit?
Am I personally liable for a small business loan?
What can I do if my business loan application is denied?
Annual percentage rates (APRs), 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.
🏦 Curious about SBA loans? Here’s an overview of how SBA loans work, the types of SBA loans that are available, what each loan type can be used for and how to get SBA financing for your small business.
Last updated on October 2, 2025
How Fundera by NerdWallet works
Getting a business loan can be challenging, and several factors —
cost, speed, repayment schedule — can play a role in deciding which
product is right for you. Let us help you through the process.
Get started
Fill out one simple application
Answer a 3-minute questionnaire about your business to get personalized lending options. It’s free and won’t impact your credit score.
See your business loan options
Compare interest rates and repayment terms to choose the best product for your needs.
Get your loan
If the lender approves you, you’ll sign closing documents in order to receive funds. Some lenders can approve and fund loans within one business day.
Methodology
NerdWallet’s review process evaluates and rates small business loan products from traditional banks and online lenders. We collect over 30 data points on each lender using company websites and public documents. We may also go through a lender’s initial application flow and reach out to company representatives. NerdWallet writers and editors conduct a full fact check and update annually, but also make updates throughout the year as necessary.
Our star ratings award points to lenders that offer small business friendly features, including:
- Transparency of rates and terms.
- Flexible payment options.
- Fast funding times.
- Accessible customer service.
- Reporting of payments to business credit bureaus.
- Responsible lending practices.
We weigh these factors based on our assessment of which are the most important to small-business owners and how meaningfully they impact borrowers’ experiences.
NerdWallet does not receive compensation for our star ratings. Read more about our ratings methodology for small business loans editorial guidelines
