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Online Business Loans 2019: Compare Your Options

Feb. 5, 2019
Small Business, Small Business Loans
At NerdWallet, we strive to help you make financial decisions with confidence. To do this, many or all of the products featured here are from our partners. However, this doesn’t influence our evaluations. Our opinions are our own.

Online business loans have become a popular financing option over the past decade as banks have scaled back on loans to small businesses. Small-business loans made up nearly half of all bank loans in 1995; that share had dropped to about a third by 2012, according to a Harvard Business School study.

With the help of algorithms and technology, online lenders analyze traditional credit standards, such as personal credit score and cash flow, and may also use nontraditional metrics, including social media interactions and online customer reviews, according to the Harvard study. As a result, they can offer quicker and easier access to capital than traditional lenders like banks and credit unions. Borrowing costs, though, are typically higher for online business loans.

Borrowing from online lenders isn’t for everyone, however. If your business is just getting started, you probably won’t qualify. You’ll have to consider other startup-financing options. But if you’ve been in business at least a year and need quick access to cash or can’t qualify for a bank loan, online business loans are worth exploring.

You can compare online financing options by product, below: term loanslines of credit and invoice factoring.

Term loans

Term loans transfer to your bank account a lump sum of cash that you repay over a fixed period. Because you can pay them off over a longer period, term loans are usually the better choice for larger investments and long-term growth.

Funding optionsGood option for:Do you qualify?Loan amount & APR
credibilitycapitallogo

Apply now at Credibility Capital


Read our Credibility Capital review.
• Good personal credit

• Short-term financing
• 680+ personal credit score

• 2+ years in business

• $250,000+ in revenue
• $50,000 to $400,000

• 10% to 25%
Screenshot 2017-05-11 09.24.23

Apply now at Currency Capital


Read our Currency Capital review.

• Equipment financing

• Competitive rates
• 585+ personal credit score

• 6+ months in business

• $75,000+ annual revenue
• $5,000 to $2 million

• 6% to 24%
FundingCircleLogo

Apply now at Funding Circle


Read our Funding Circle review.
• Good personal credit

• Established businesses

• Franchises
• 620+ personal credit score

• 2+ years in business

• No minimum annual revenue required
• $25,000 to $500,000

• 7.4% to 36%
lending_club_logo_new-249x47

Apply now at Lending Club


Read our Lending Club review.
• Good personal credit

• Low rates for strong-credit borrowers
• 600+ personal credit score

• 1+ years in business

• $50,000+ annual revenue
• $5,000 to $300,000

• 9.8% to 35.7%
OnDeckForTable
Apply now at OnDeck


Read our OnDeck review.
• Bad personal credit

• Retail or food service businesses

• Fast cash
• 500+ personal credit score

• 1+ years in business

• $100,000+ annual revenue
• $5,000 to $500,000

• 16.7% to 99.4% as of Q1 2018



Apply now at Quarterspot


Read our QuarterSpot review.
• Bad personal credit

• Fast cash

• Short-term financing
• 550+ personal credit score

• 2+ years in business

• $200,000+ annual revenue
• $5,000 to $200,000

• 30% to 70%

smartbiz

Apply now at SmartBiz


Read our SmartBiz review.


• Good personal credit

• Long-term capital

• Low rates

• SBA loans
• 600+ personal credit score for loans $30,000 to $150,000

• 650+ personal credit score for loans over $150,000

• 2+ years in business

• $50,000+ annual revenue
• $30,000 to $350,000

• 9.7% to 11.04%
StreetShares loans

Apply now at StreetShares


Read our StreetShares review.
• Good personal credit

• Veterans

• Newer businesses
• 600+ personal credit score

• 1+ years in business

• $75,000+ annual revenue
• $2,000 to $150,000

• 9% to 40%


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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’ve borrowed. 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.

Funding optionsGood option for: Do you qualify?Loan amount & APR
bluevine
Apply now at BlueVine


Read our BlueVine review.
• Good personal credit

• Newer businesses

• Financing smaller amounts
6-month line of credit:

• 600+ personal credit score

• 6+ months in business

• $100,000+ annual revenue

12-month line of credit:

• 620+ personal credit score

• 2+ years in business

• $450,000+ annual revenue
• $5,000 to $250,000

• 15% to 78%
FundBox Logo
Apply now at FundBox


Read our Fundbox review.
• Bad personal credit

• Fast cash
• No minimum personal credit score

• 3+ months in business

• $50,000+ annual revenue
• $1,000 to $100,000

• 10.1% to 79.8%
Kabbage_Logo_150x40
Apply now at Kabbage


Read our Kabbage review.
• Bad personal credit

• Newer businesses
• 560+ personal credit score

• 1+ years in business

• $50,000+ annual revenue
• $2,000 to $250,000

• 24% to 99%
OnDeckForTable
Apply now at OnDeck


Read our OnDeck review.
• Good personal credit

• Fast cash

• 600+ personal credit score

• 1+ years in business

• $100,000+ annual revenue
• Up to $100,000

• 11% to 63%
StreetShares loans
Apply now at StreetShares


Read our StreetShares review.
• Good personal credit

• Veterans

• Newer businesses
• 600+ personal credit score

• 1+ years in business

• $75,000+ annual revenue
• Up to $250,000

• 9% to 40%


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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.

Funding optionsGood option for: Do you qualify?Loan amount & APR
bluevine
Apply now at Bluevine


Read our BlueVine review.
• Bad personal credit

• Newer businesses

• Businesses with strong-credit customers
• 530+ personal credit score

• 3+ months in business

• $100,000+ annual revenue
• $20,000 to $5 million

• 15% to 68%
fundbox

Apply now at Fundbox


Read our Fundbox review.
• Bad personal credit

• Fast cash
• No minimum personal credit score required

• No minimum annual revenue required

• Must have compatible online accounting software
• $1,000 to $100,000

• 10.1% to 78.6%
Street Shares

Apply now at StreetShares


Read our StreetShares review.


• Businesses interested in government contracts
• 540+ personal credit score

• 1+ year in business
• 90% of invoices; 80% to 90% of a government contract

• 1% to 5.5%


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Compare 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.

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